BUU44640 International Finance

(5 ECTS)

Lecturer:

Rawayda Abdou

Email: abdour@tcd.ie

Office Hours: To be advised at the start of term  

Pre-Requisite: 

BUU22550 - Introduction to Finance

Available to Exchange students 

Module Description

As the international company becomes the norm rather than the exception, the need to internationalise financial analysis tools is critical. This module is divided into two sections. The first section examines the global financial environment. It analyses exchange rate systems, studies international financial markets, and details the theory and evidence on exchange rate determination. The second section concentrates on global risk management. The objective is to provide a good grounding in techniques and approaches for the management of financial risks, with an emphasis on exchange rate risks. This section defines the primary types of derivatives (forwards, futures and options), and illustrates how they are used to achieve various hedging and speculating objectives to manage international financial risk.

Concluding the module, we will turn our attention to the urgent sustainability challenges confronting our planet. We will examine the critical role that international companies play in progressing towards and achieving the United Nations' Sustainable Development Goals (SDGs).

Learning and Teaching Approach

This module is structured around a series of lectures, tutorials and additional readings. Tutorials will begin in week 2 of term and you will be assigned to a tutorial group on your portal. Students will be expected to prepare homework in advance of lectures and to contribute to discussions in tutorials. Participation in lectures is enhanced by engaging in polls and quizzes.

Learning Outcomes

Having completed this module, students should be able to:

• Understand the evolution of the current international monetary systems and the role of the main international financial institutions.
• Critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy.
• Compare, contrast and evaluate the main parity relationships in international finance.
• Understand the role of derivative instruments in managing international financial risk, and evaluate alternative approaches to international financial risk management within the firm.
• Examine the benefits of international portfolio investment vis-a-vis domestic-only diversification.
• Assess global sustainability challenges and the role of international companies in achieving the United Nations' Sustainable Development Goals (SDGs).

Relation to Degree

This course provides an understanding of the key concepts, theories, and practicalities of international finance. It is highly relevant for anyone considering a future career in business, finance, or related areas, particularly in foreign exchange (FX) risk management, due to the increasingly globalized nature of business.

Workload

Textbook and Readings

Required core course textbook

Eiteman, D.K., Stonehill, A.I., & Moffett, M.H. (2021). Multinational Business Finance (15th ed. Global Edition). Pearson Education.

General Supplemental Readings

A variety of supplemental readings related to each topic will be assigned throughout the course and posted on Blackboard.

Assessment

Assessment for this course will be as follows:

1. International Finance Project (Group) – 30%
2. Final Examination (Individual) – 70%