This advanced undergraduate course in International Financial Management aims at providing students with a working knowledge and in-depth understanding of both financing and investment alternatives in the globalized financial arena. The context of the course will be international financial issues of importance to multinational corporations, international investors, global bankers, and foreign trade firms as well as to government officials placed in ministries of economy, trade, foreign affairs, or central banks. First, we will study the global macroeconomic environment in which the internationally engaged or cross-border challenged local firms operate in. The second and third parts of the course will analyze exchange rate theory and policy, together with various facets of FX risk and techniques of FX risk management. The fourth segment will examine international financing facilities of different maturities available from public and supranational sources. The fifth and sixth segments of the course will deal with long and short-term private sources of international financing, coupled with some multinational corporate management issues worth considering. The last topic covered will concern the recent global financial meltdown and both the private and sovereign debt crises that followed, including the potential of currency unions to avoid original sin problems and the legacy and takeaways from European monetary integration and the ongoing Eurozone crisis. Mastering international risk assessment, students will learn to read and analyze balance of payments and become familiar with the exchange rate and FX risk management. Also, they will begin to evaluate different international financing sources and instruments, international capital budgeting, and international cash management. Students will become familiar with global financial crises, the Eurozone’s past and present, and sovereign debt problems. (Lecturer: Marko Malovic)
