SOUTH EASTERN KENYA UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP
UNIT CODE: DFI304 UNIT NAME: INTERNATIONAL FINANCE
LECTURER: CPA/CS .Evusa zablon TEL. NO:0722947528 Email: zevusa@seku.ac.ke
JANUARY 2023
Course Purpose: The course will expose students to the international financial environment,
international capital and money markets, and the financial operations of the multinationals
(MNCs).
Expected learning outcomes
At the end of the unit, the learner should be able to:
Discuss the operations of International Financial Markets (IFMs)
Enumerate financial operations of Multinational Companies (MNCs)
Outline the role of the finance manager in a Multinational Company
Discuss the emerging issues in International Finance
Course Content
Factors that distinguish international from domestic setting including volatile currency in
different fiscal regimes, and cross-border risks, the implication for valuation theory, financial
logistics, and foreign exchange risk management. The international financial system and
strategies for stabilizing it Analysis and quantification sovereign risks
Topic Session Areas
Introduction 1 Goals of a multinational corporation
The impact of managerial control
Constraints to MNCs Organisation Goals
2 Comparative Corporate governance and Financial
Goals
Operational Goals of Multinational Corporations
Comparative Corporate Governance
Failures in Corporate Governance
3 Good Corporate Governance ,Corporate
governance theories and Corporate Governance
Reform
Theories of international 4 The theory of comparative advantage
business Product cycle theory
The imperfect market theory
5 Models of international capital flows
International Capital Models of risk diversification
Flows Differences between foreign and domestic
investment
International capital mobility
CONTINUOUS ASSESSMENT TEST
7 .Participants in international capital flow and
international financial market-
Hedgers, arbitrageurs ,Traders, Speculators, law
of one price and international parity relationships
Foreign Currency 8 . Reasons for foreign investment, Foreign
Exchange
exchange, Determinants of foreign currency
9 .Factors affecting exchange rates, Types of exchange
rates, Exchange rate exposure, Management of
transaction exposure, International borrowing and
investment
10 Eurocurrency market, International capital
markets, Types of eurocurrency loans, Factors to
consider when choosing between eurocurrency or
domestic markets
CONTINUOUS ASSESSMENT TEST
11 International financial organisation ,Purposes of
IMF,Special drawing rights, International bank of
reconstruction and development, International
finance corporation (IFC), International
development associationIDA),Structural
adjustment programmes
(SAPs),Characteristics and effects of
SAPs,Contemporary Financial Regimes
12 REVISION
13 REVISION
Teaching Methods
Lectures, Discussion, Class Presentations, Tutorials, Question/Answer
Evaluation
Assessment Marks
CAT’s & Assignments 30%
Final exam 70%
Pass Mark 40%
