Overview

The financial management of multinational companies (MNCs). The impact of macroeconomic, fiscal, currency and political environments on MNCs. Determinants of exchange rates, and purchasing power and interest rate parity. Management of exchange rate exposure through forwards, options and money market contracts. Corporate financing decisions including sourcing funds from overseas and identifying costs of capital; capital investment appraisal; working capital management and the positioning of funds in the MNC.

Assessment Strategy

-threshold C --A basic knowledge of course material. -good -B - In addition to the above, an ability to write analytically on specific issues. -excellent -A - In addition to the above, the ability to illustrate and enhance arguments and analyses through the use of relevant supporting evidence drawn from the established literature and real-life examples.

Learning Outcomes

• Analyse the factors that influence the evaluation and implementation of international investment projects.

• Assess transaction and economic currency exposures and their management using external (derivatives and money markets) and internal techniques.

• Evaluate the impact of interest rates and inflation rates on exchange rates and the usefulness of the parity relationships.

• Evaluate the implications of the globalisation of financial markets for the financial management of multinational companies.