GMBA 8270 - International Finance II

1.5 Credit Hours
Description
Focus is on foreign exchange risk management, management of the multinational financial system (transfer pricing, taxation, and the investment and financing decisions of global firms). We study foreign exchange market and demonstrate how currency futures and options markets are used for short-term risk management, followed with management of exposure to foreign exchange risk. We examine principles for taxation of foreign source income and the role of transfer pricing. This discussion paves the way for learning about multinational capital budgeting and the international cost of capital. Finally, financing decisions of the global firm given Eurocurrency markets and markets for interest rate swaps and currency swaps will be examined together with demonstrating role in LT risk management.