INTERNATIONAL FINANCE

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN306685
Module Leader Kazem Falahati
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • A (September start)
  • B (January start)

Pre-Requisite Knowledge

Undertaken M3N306684 CORPORATE FINANCE AND INVESTMENT or equivalent.

Summary of Content

Rationale The purpose of this module is to cover the theories of international trade, and operations of the currency and finance markets in the context of the financial management of multinational companies. Summary of content The course covers the motivations and the constraints for growth in international trade, and the opportunities and risks involved. It provides an understanding of how the challenges of expanding internationally can be met to satisfy the various stakeholders.

Syllabus

1. Introduction to International Finance and foreign exchange markets 2. Theories of exchange rate movements and associated empirical evidence 3. Foreign exchange risk and exposure management techniques 4. Direct foreign investment and international capital budgeting 5. MNC cost of capital and capital structure

Learning Outcomes

On successful completion of this module, students should be able to: 1. Assess the relationships between operations of foreign currency markets and theories of exchange rate movements2. Identify the types of foreign exchange risk and be able to correctly advise on appropriate hedging techniques3. Critically evaluate international investment opportunities4. Critically examine the empirical validity of various theories in international finance

Teaching / Learning Strategy

There will be two hours of lectures each week. The lectures will introduce the main theoretical points with a critical analysis of the topic to facilitate further exploration of the subject matter; where appropriate, suitable video or web-based material will be used to complement the lectures. There will also be one seminar per week. Students are expected to keep up-to date with the relevant reading and to attempt seminar questions prior to the seminar, where they will be asked to participate in group discussions and present solutions. Feedback Strategy Students will be provided with feedback on all forms of assessed work within three working weeks of submission. They will also receive feedback on all group or individual contributions to the module. The following strategies will be adopted: A: Facilitating the development of self-assessment. Students will be asked to identify the strengths and weaknesses in their work in relation to marking criteria before handing in their essay. Students will be asked to provide feedback on individual presentations. B: Encouraging dialogue. Seminars form the largest part of classroom activity. These are designed (among other things) to facilitate students entering into dialogue both with their peers and with the tutor. C: Clarifying good performance. Students will be provided with information about marking criteria and performance level definitions. D: Providing opportunities to close the gap between current and desired performance. The seminars provide the opportunity to constantly reflect on performance. In addition, students will be asked to identify action points based on the feedback they have received. E: Delivering high quality information about learning. Feedback will be provided within three working weeks of submission and will provide information on strengths, weaknesses and corrective advice. F: Encouraging positive motivational beliefs and self-esteem. Opportunities will be provided for students to receive individual feedback designed to encourage positive motivational beliefs and self-esteem. G: Providing information to teachers that can be used to help shape the teaching. The seminars provide the opportunity to constantly reflect on the module. In addition, students will be asked to identify where they are having difficulties when they make their presentations and when they hand in their assignment.

Indicative Reading

The main text of the module are: Madura, J. International Corporate Finance, (latest edition) West Publishing Company. Buckley, A., Multinational Finance, Prentice Hall Journals: Journal of Multinational Financial Management and Global Finance Journal.

Transferrable Skills

Research Skills Critical Evaluation Numeracy skills These are reflected during the assessment process and seminars.

Module Structure

Activity Total Hours
Assessment (FT) 14.00
Seminars (FT) 12.00
Independent Learning (FT) 150.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 3.00 70.00 35% Final examination
Coursework 0.00 30.00 35% Essay