Excerpt from course description

Financial Strategy in a Global Economy

Introduction

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

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.