BAFI 532 International Financial Management

BAFI 500

We begin with a brief review of the foreign exchange markets and conditions which govern them. We then study the concepts of foreign exchange exposure and risk, including the sensitivity of asset/liability values to changes in exchange rates and the volatility in asset/liability values due to unanticipated changes in exchange rates, and the ways in which companies’ total revenues, costs and profits are affected by changes in exchange rates.We then investigate a range of corporate finance and investment decisions faced domestically as they manifest themselves in the international context: risk, multi-currency cash management, foreign direct investment, transfer pricing, etc. We also examine why so many corporations have become multinational or transnational and some regulatory issues that arise from this.The module also covers international financing and the special factors affecting capital structure – including the currency-of-debt denomination problem. This leads to a discussion of international banking and the link between international finance and international trade.

Instructor Biography- Glen Donaldson

Course Outline - Class of 2018 (updated Aug 10, 2017)

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