International Financial Management

Course overview:

In this course, you’ll learn how to tackle real-world financial challenges faced by international companies. You’ll use quantitative tools and financial models to analyze exchange rates, assess risks, and value global investment projects. We’ll explore practical strategies for managing currency risk, including hedging with financial derivatives. You’ll also examine capital budgeting decisions, ethical issues like ESG and Islamic finance, and how government policies impact global markets. With hands-on practice in Python and AI/ML, you’ll be able to analyze international financial data and present your findings clearly—helping you build skills that are valuable for any career in international business.

Topics covered:

• International trade theories and investment
• International financial markets
• Multinational corporation (MNC) goals and challenges
• Exchange rates, inflation, interest rates, and parity conditions
• International arbitrage
• Financial modeling and currency risk management
• Foreign direct investment valuation
• Hedging strategies and derivatives
• Ethics in global finance (ESG, Islamic Finance)
• Government intervention in currency markets
• AI/ML techniques for financial analysis

Learning outcomes

At the end of the course, students should be able to:

• Explain key theories of international trade, functions of global financial markets, and relationships between inflation, interest rates, and exchange rates.
• Apply quantitative techniques to forecast exchange rates, value investments, and analyze risks in international finance.
• Evaluate hedging strategies and capital budgeting decisions of MNCs, considering ethical and regulatory impacts in global finance.
• Apply Python and basic AI/ML tools to analyze international financial data, and clearly communicate financial insights and recommendations.
• Effectively communicate complex financial analyses and strategic recommendations in a clear, concise, and professional manner.

Teaching methods: Faculty lectures and guest lectures. Compulsory Activities: Compulsory assignments with oral presentations throughout the semester which also give access to a final exam.