INTERNATIONAL FINANCIAL MANAGEMENT

SHE Level 5
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MMN423984
Module Leader Edward Thompson
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • B (January start)
  • A (September 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 - Managing expansion and contraction strategies of multinational companies - Managing exchange rate risks for multinational enterprises - Determining and managing financial policies of multinationals companies - Financial derivatives including exchange traded and over the counter instruments. - International capital markets - Raising capital in international capital markets - International cost of capital and capital structure - Different forms of exchange rate systems - Exchange rate theories - Operations of foreign currency markets -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 the empirical validity of these theories, in particular in an international context where multinational companies operate.2. Understand the uses and risks of derivative instruments in financial management.3. Recognise the complexity of international financial markets and institutions and their relevance to the management of multinational enterprise.4. Appreciate the reasons for the existence of international trade in its various modes, and its impact on the balance of payments of each country.5. Understand the main theories of exchange rate determination.6. Understand the operation of foreign currency markets.

Teaching / Learning Strategy

The MSc Accounting and Finance programme is geared towards the development of business skills that encourage responsible leadership, internationalisation and professionalism, aiming to engage students in analysis, research and discussion of contemporary, real life issues. The teaching and learning strategy aims to embed these attributes. Face to face contact involves three hours of class contact per week: normally 2 lectures and 1 seminar. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students will be then expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and where necessary, computational questions. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussion 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 the lectures taking place, providing the basis for deepening professional skills, knowledge and understanding. Module classes are conducted in workshop format providing a mix of tutor led, student led and group learning. Extensive use is made of VLE to complement and support the face to face and independent learning elements of the module as well as enhancing the student learning experience and engagement. The V LE site used as a repository for resources including key readings such as scanned material, journal articles, book chapters, digital book chapters, web-links, embedded video clips but also for interactive forums such as discussion boards and blogs. The teaching and learning strategy includes hours hours of practicals to complement the face to face delivery of the module and independent learning through such activities as specialist speakers, site visits related to project management and other academic community activities to enhance the learning experience such as an away-day to develop dissertation topics from within the distinct module areas. E-resources are provided to students via GCU Learn, including, but not limited to, lecture materials, scanned material, digital book chapters, web-links and embedded video clips. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing.

Indicative Reading

The main texts associated with the module are the latest editions of: Madura, J., International Financial Management, Thomson Eun, C. S., and B. G., Resnick, International Financial Management, McGraw-Hill Madura J., and R. Fox, International Financial Management, Thomson Falahati, K., New Paradigms in Financial Economics, Routledge Buckley, A., Multinational Finance, Prentice Hall 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: Journal of Multinational Financial Management Journal of Multinational Finance Global Finance Journal Journal of Corporate Finance Journal of Financial Economics Journal of Business, Finance and Accounting Journal of Finance Journal of Economic Literature Journal of Economic Perspectives Journal of Economic Issues Web Site: FT.com Also websites of IMF, Fed, BoE, OECD, etc.

Transferrable Skills

Critical thinking skills which are reflected in engagement with the lecture material and the necessary preparation for the seminars and assessments. Communication skills which are reflected in the seminar presentations and discussions Independent working which is reflected in the preparation for the seminars Problem solving which is reflected in preparation for seminars. 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
Lectures (FT) 24.00
Assessment (FT) 20.00
Independent Learning (FT) 136.00
Practicals (FT) 8.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 1 n/a 30.00 45% Essay of c2000 words
Exam (Exams Office) 2.00 70.00 45% A combination of numerical as well as non-numerical conceptual questions