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Module Title
LM International Business Finance
School
Birmingham Business School
Department
Finance
Module Code
07 15442
Module Lead
Phillip John Cadle
Level
Masters Level
Credits
10
Semester
Semester 2
Pre-requisites
Co-requisites
Restrictions
None
Exclusions
Description
This module aims to develop an understanding of the financial management of multinational companies, (MNC’s), and in particular, factors influencing exchange rates and exchange rate system, hedging financial risk exposures, financing decisions, direct foreign investment decisions, cross-border mergers and acquisitions and international taxation and the use of tax havens.
Learning Outcomes
By the end of the module students should be able to:
Analyse the impact of interest and inflation rates on exchange rates and the usefulness of the parity relationships.
Demonstrate comprehensive knowledge and understanding of transaction and operating (economic) currency exposures and their management using external (derivatives and money markets) and internal techniques and policies.
Critically evaluate the Euromarkets and factors survey evidence suggests influence the choice and mix of financing of MNC’s.
Critically appraise the factors likely to influence the evaluation and implementation of international investment projects and cross border mergers and acquisitions.
Compute a suitable cost of capital for use in analysing investment decisionsCritically appraise a proposed foreign investment decisions and cross border acquisition
Describe transfer pricing and taxation influences on MNC policies and decisions
Analyse working capital management decisions in a multinational context
Assessment
15442-01 : Group Assignment : Group Assessment - Coursework (40%)
15442-07 : Assignment : Coursework (60%)
Assessment Methods & Exceptions
Assessments: Group assignment (4000) words (40%); Individual assignment (2500 words) (60%)
Reassessment: 2,500 word individual assignment (100%)
Other
Reading List
Shapiro , AC, Multinational Financial Management, J.Wiley, 7th edition, 2002
Financial Times: students are required to skim the paper for issues relating to MNC's and financial decision-making in such companies.