BADM 454-01, International Finance, Fall 2005

Abstract

This course considers financial issues associated with the operation of a firm in the international environment. The course will focus on the complications that make corporate financial decision making more complex for internationally oriented firms than purely domestic firms. The course is divided into three distinct segments. Segment 1 introduces international economic history and the theories that explain international business and foreign exchange rate determination. Segment 2 describes the relationships between exchange rates and various economic variables. Segment 3 illustrateshow multinational corporations deal with the risk associated with exchange rate fluctuations. While the course presents theoretical points of view on the various issues, it uses both empirical evidence and discussion of firms' real world activities with the goal of preparing a student for a career dealing with financial issues of international corporate operations. The course material will be delivered in the form of lectures interspersed with case evaluation by the class possibly in groups.