International Finance
- Faculty
Faculty of Business Management and Social Sciences
- Version
Version 1 of 13.01.2025.
- Module identifier
22B1844
- Module level
Bachelor
- Language of instruction
English
- ECTS credit points and grading
5.0
- Module frequency
winter and summer term
- Duration
1 semester
- Brief description
The students get to know the special features of large international corporations and can solve the financial problems of these companies.
- Teaching and learning outcomes
Part 1: THE INTERNATIONAL FINANCIAL ENVIRONMENT.
1. Multinational Financial Management: An Overview.
2. International Financial Markets.Part 2: EXCHANGE RATE BEHAVIOR.
3. Government Influence on Exchange Rates.
4. International Arbitrage and Interest Rate Parity.
5. Relationships among Inflation, Interest Rates, and Exchange Rates.Part 3: EXCHANGE RATE RISK MANAGEMENT.
6. Forecasting Exchange Rates.
7. Measuring Exposure to Exchange Rate Fluctuations.
8. Managing Transaction Exposure.
9. Managing Economic Exposure and Translation Exposure.Part 4: LONG-TERM ASSET AND LIABILITY MANAGEMENT.
10. Direct Foreign Investment.
11. Multinational Capital Budgeting.
12. Multinational Cost of Capital and Capital Structure.
- Overall workload
The total workload for the module is 150 hours (see also "ECTS credit points and grading").
- Teaching and learning methods
Lecturer based learning Workload hours Type of teaching Media implementation Concretization 45 Lecture Presence - Lecturer independent learning Workload hours Type of teaching Media implementation Concretization 45 Preparation/follow-up for course work - 30 seminar paper - 30 Study of literature -
- Graded examination
- Written examination or
- Homework / Assignment or
- Oral presentation, with written elaboration
- Exam duration and scope
Written examination: in accordance with the valid study regulations
Written paper: approx. 10-15 pages
Report: presentation of approx. 20-40 minutes with written report of approx. 5-10 pages
The requirements are specified in the relevant class.
- Recommended prior knowledge
Mathematics (basic knowledge)
Statistics (basic knowledge)
- Knowledge Broadening
Students who successfully complete this module are are familiarizes with the international financial environment, exchange rate behavior and exchange rate risk management.
- Knowledge deepening
The students know the special characteristics of international companies and can describe different forms of financing. The students can explain the different exchange rate models and can describe different methods to manage the exchange rate risks in companies.
- Knowledge Understanding
The students can weigh up the different forms of financing for international companies. The students can apply the different methods to manage the exchange rate risks in companies are able to recognize the advantages and disadvantages of the different methods.
- Academic Self-Conception / Professionalism
The students can critically reflect on exchange rate theories and methods of financial and risk management.
- Literature
Eiteman, D. K. / Stonehill, A. I. / Moffett, M. H., 2004, Multinational Business Finance, Reading et. al.
Gandolfo, G., International Finance and Open-Economy Macroeconomics, Springer.
Melvin, M., International Money and Finance, Addison Weslay.
Butler, Kirt Charles: Multinational finance, - Mason, Ohio [u.a.]: Thomson/South-Western.
Brealey/Myers: Principles of Corporate Finance, New York.
Fabozzi, Frank J./ Modigliani, Franco: Capital Markets, Institutions and Instruments, , New Jersey: Prentice Hall.
- Applicability in study programs
- Business Law (Bachelor)
- Business Law, LL.B.
- Person responsible for the module
- Seppelfricke, Peter
- Teachers
- Seppelfricke, Peter