International Financial Management – IPP

About this course

The objective of the curricular unit isprovide tools and techniques to support business decision making in an international context. Financial policy decisions, explanatory models of exchange rate developments and the way in which markets work are discussed, and risk hedging mechanisms and techniques are studied. Topics on investments by internationalized companies are also presented, including country risk analysis and estimation of the international cost of capital.

Expected learning outcomes

(1)To recognize and explore different cultural profiles – based on recognized academic culture classification models – and identify potential communication barriers aiming to attain clarity and fluency among business partners with different cultural backgrounds to be able to overcome those potential cultural challenges and obstacles. (2) to recognize sources of cultural diversity and provide tools for diversity management, especially in an organizational context. (3)Present different business negotiation models and communication styles to analyze and detect potential disruptive communication circumstances and develop suitable solutions for each situation.

Indicative Syllabus

1. The International Financial Environment

1.1. The Financial Function in a Globalized Economy

1.2. The International Financial Markets

2. Exchange Markets

2.1. Parity Conditions

2.2. Spot and Forward Markets

2.3. Exchange Rate Forecast

3. Exchange Risk Management

3.1. Exposure to Exchange Risk

3.2. Exchange Risk Hedging Strategies and Instruments

3.2.1. Currency Futures

3.2.2. Currency Options

3.2.3. Swaps and Forward Contracts

4. International Transactions and Financing 4.1.Commodity Price Risk Management (Imports/Exports)

4.2 International Debt Instruments

4.2. Interest Rate Risk Management

5. International Investment

5.1. Evaluation of International Projects

5.2. Country Risk Analysis

5.3. Theory ofportfolioInternational

Teaching / Learning Methodology

Theoretical-practical classes that include the exposition of the topics of the program, the performance of exercises and the critical discussion of practical cases and other material included for debate and reflection. Learning will include group and/or individual work, including research assignments and oral presentations by students in the classroom.

Recommended Reading

TBA