INTERNATIONAL FINANCIAL MANAGEMENT

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN324979
Module Leader Edward Thompson
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • A (September start)
  • B (January start)
  • C (May start)

Pre-Requisite Knowledge

Standard Programme Entry Requirements

Summary of Content

The purpose of this module is to cover the theories and operations of international financial and currency markets in the context of financial management of a multinational company. Relevant topics include the critical examination of advanced theories in international financial management; the structure of international capital markets; operations of international currency and money markets; and the extra operational risks that arise as a result of operating in international markets.

Syllabus

Theories of international trade and financial management 8468 Managing exchange rate risks for multinational enterprises 8468 Financial derivatives including exchange traded and over the counter instruments. 8468 International capital markets 8468 Raising capital in international capital markets 8468 Different forms of exchange rate systems 8468 Exchange rate theories 8468 Operations of foreign currency markets 8468 The role of the World Bank, the IMF and other international financial institutions

Learning Outcomes

On successful completion of this module, the student should be able to:1. Critically appraise contemporary theories of financial management and be able to evaluate theempirical validity of these theories, in particular, in an international context where multinationalcompanies operate.2. Understand the uses and risks of derivative instruments in financial management.3. Appreciate the reasons for the existence of international trade in its various modes, and its impact onthe balance of payments of each country, and the ethical and environmental issues facingmultinationals.4. Understand the main theories of exchange rate determination and operation of foreign currencymarkets.

Teaching / Learning Strategy

The teaching and learning strategy will combine theoretical and illustrative content from lectures or directed learning/web-based materials. All students will be directed to further reading to support the theoretical and illustrative applied content of the module. For campus-based students, face to face contact involves three hours of class contact per week: normally 2 lectures and 1 seminar. Distance learning teaching utilises paper-based learning materials with tutor support and Web-access to library resources. As part of the GSBS strategy of increasing the use of blended learning, for both on-campus and distance-learning students, different blended learning mechanisms, such as Padlet and GCU's SMILE and SMIRK can be utilised. All students will be expected to be able to participate in reflective group discussion to further develop understanding and to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to seminars and these will provide the basis for deepening professional skills, knowledge and understanding. The module is based on real-world learning from a global perspective, considering mainly financial aspects, but also ethical and environmental issues of international business. In line with GCU's Common Good Attributes, the module aims to educate students for responsible leadership insofar it concerns the financial management of multinationals so as to produce graduates who can enter the work place with an understanding of PRME principles and the GCU's Common Good ethos embedded in to their thinking. Every student will receive a module handbook and sample test questions and answers. Topics are introduced in lectures. Lectures will be supported by web-based material on GCU Learn. Students will be expected to prepare for seminar classes on each topic by engaging in literature searches, undertaking appropriate reading and preparing responses to discursive and, where appropriate, computational questions. Classes will adopt a variety of teaching styles and students will be encouraged to participate through. Classes will include the critical evaluation of research from the refereed literature, thus forming a basis for the review and discussion of literature expected in the students' coursework and tests.

Indicative Reading

The main texts associated with the module are the latest editions of: Madura, J., International Financial Management Falahati, K., New Paradigms in Financial Economics, Routledge Eun, C. S., and B. G., Resnick, International Financial Management, McGraw-Hill Buckley, A., Multinational Finance, Prentice Hall Grath, A., The Handbook of International Trade and Finance, Kogan Page Academic Copies are available in the Short Loan collection in the Library. The foregoing reading list does not in any way exhaust the texts relevant to this subject. At the MSc level, the student should be able to research other texts to complete their notes. In most cases only consider textbooks with editions published within the last 5 years. It is also helpful to read some financial paper e.g. The Economist's Finance section or the Investors Chronicle which are both available in the Library. Also the Financial Times gives good information on financial markets. Some useful sites can also be found on the internet, see useful links page on course Blackboard site. Appropriate Journals: 8468 Journal of Multinational Financial Management 8468 Journal of Multinational Finance 8468 Journal of Corporate Finance 8468 Journal of Financial Economics 8468 Journal of Business, Finance and Accounting 8468 Journal of Finance 8468 Journal of Economic Literature 8468 Journal of Economic Perspectives 8468 Journal of Economic Issues 8468 Web Site: FT.com 8468 Global Finance Journal 8468 Also websites of IMF, Fed, BoE, OECD, BIS, etc.

Transferrable Skills

By the end of this module students should acquire the following skills: 8468 Critical thinking skills which are reflected in engagement with the lecture material and the necessary preparation for the seminars and assessments; 8468 Communication skills which are reflected in the seminar presentations and discussions; 8468 Independent working which is reflected in the preparation for the seminars; 8468 Problem solving which is reflected in preparation for seminars; 8468 Planning, monitoring, reviewing and evaluating own learning and development which is reflected by the structure of the module which is designed to foster the development of these skills.

Module Structure

Activity Total Hours
Seminars (FT) 12.00
Assessment (FT) 30.00
Independent Learning (FT) 84.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 60.00 45% A combination of numerical as well as non-numercial conceptual questions
Essay n/a 40.00 45% Essay 2000 words