Excerpt from course description

Financial Strategy in a Global Economy


The overall goal of the course it to provide the participants with a sound understanding of financial decision-making in the multinational firm. However, whilst the course is presented from a managerial perspective and thus applied in nature, decision-making is approached using firmly established theories in economics and finance.

Course content

  1. Introduction: Globalization and the Multinational Firm
  2. The International Monetary System: Balance of payments and supply and demand in the FX-market, FX-rate regimes
  3. Foreign Exchange Market: Market participants, contracts traded, FX-rate quotation, interbank market, market microstructure
  4. Parity Relationships: covered and uncovered interest parity, purchasing power parity, international Fisher effect
  5. Forecasting Exchange Rates: forecasting FX-rate level and variance, forecast performance measures, forecasts based on economic models and technical analysis, carry trades
  6. Currency Futures and Options: pricing and hedging
  7. Transaction (contractual) Exposure: financial hedging, special hedging problems, alternative hedging approaches
  8. Operating Exposure: measuring this exposure, financial and operational hedging
  9. Foreign Direct Investment, Political and Country Risks: determinants of country risk, measurement, and consequences for capital budgeting
  10. Domestic and International Capital Structure and the Cost of Capital
  11. Domestic and International Capital Budgeting


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