FS6059MULTINATIONAL FINANCE

Session 1

Learning objectives

• Demonstrate, mathematically and discursively, a clear understanding of the major theories relating to multinational financial management.

• Discuss the relationship between theory and practice in this area.• Understand the financial implications of current international

corporate events.• Understand the rationale for multinational companies.• Appreciate the key areas of international business decision-making.• Analyse the changing importance of the foreign exchange market.• Understand the principal problems associated with international

capital budgeting and cash management.• Analyse key sources of international finance.• Appreciate role of international financial innovation.

Assessment Strategy

Assessment type

Description of item % WeightingQual Mark

Qual Set Tariff Week due

CWK1 Group Presentation 20 - - - 7

CWK2 1500 word Group Report 30 - - - 11

EXU 2 hour unseen exam 50 - - - 14

Syllabus

• International financial environment.• Exchange rate behaviour.• Exchange rate risk management.• Long-term asset and liability management.• Short-term asset and liability management

ESSENTIAL READING

• Core Texts

• Alan C Shapiro Foundations of Multinational Financial Management (6th edition).John Wiley & Sons Inc., 2008

• http://catalogue.londonmet.ac.uk/record=b1566483~S1

• Eiteman D, Stonehill, A and M Moffett . Multinational Business Finance (12thedition)Pearson–Addison–Wesley, 2010

• http://catalogue.londonmet.ac.uk/record=b1595935~S1

• Kettell, B. Businessman’s Guide to the Foreign Exchange Market (Graham and Trotman)

• http://catalogue.londonmet.ac.uk/record=b1079955~S1

• Kettell, B. What Drives Currency Marketsafter the Euro (FT-Prentice Hall)

• http://catalogue.londonmet.ac.uk/record=b1230436~S1

ESSENTIAL READING • Background Reading• Griffin, R.W (2010) International Business 6thed Addison Wesley,

Longmanhttp://catalogue.londonmet.ac.uk/record=b1600403~S1• Hibbert, E.P (1997) International Business: Strategy and Operations, Macmillan Business• http://catalogue.londonmet.ac.uk/record=b1379878~S1• Daniels, J.D. &Radebaugh, L.H. International Business: Environments and Operations, 13thedAddison

Wesley, Longman 2011• http://catalogue.londonmet.ac.uk/record=b1605767~S1• Dawes, B (1995). International Business: A European Perspective, Stanley Thornes

http://catalogue.londonmet.ac.uk/record=b1067130~S1• Tayeb, M. International Business: Theories, Policies and Practices, FT/Prentice Hall

http://catalogue.londonmet.ac.uk/record=b1023586~S1

Lecture Programme

This survey was conducted in 2010. This reveals youth involvement in different Economic sectors.• WEEK 1.The current International Financial Environment• WEEK 2.Foreign exchange rates • WEEK 3.The international flow of funds• WEEK 4.FX Spot and Forward Calculations and Forecasting• WEEK5.PPP and Arbitrage Conditions• WEEK6.Reading Week• WEEK 7.Liability Management• WEEK8. Capital Structure• WEEK9.Asset Management• WEEK 10. Reading Week• WEEK 11.Revision Lecture

Seminar Programme

• WEEK 1.Course Structure and Assignment• WEEK 2. International Financial Environment• WEEK 3.Foreign exchange rates and the international flow of

funds• WEEK 4.FX Calculations and Forecasting• WEEK 5. PPP and Arbitrage Conditions• WEEK 6. Reading Week• WEEK 7. Presentations• WEEK8.International Capital Markets• WEEK 9. Liability Management• WEEK 10.Capital Structure

Thank you Future Managers