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Instructor Class Description

Time Schedule:

Stephan Siegel
FIN 528
Seattle Campus

International Financial Management

Analysis of financial problems facing businesses engaged in international activities: financing foreign investment, financial control of foreign operations, and working capital management including foreign exchange positions using cases and readings. Prerequisite: B A 502 or FIN 509.

Class description

Companies engaging in cross-border business as well as investors allocating capital globally face important international financial decisions. This course aims at providing the necessary understanding and tools to evaluate, finance, and manage international business and investment activities. While emphasis will be on the practical application of techniques and concepts, we will also study the underlying economic and institutional forces.

In the context of international finance, understanding foreign exchange rates is, of course, crucial. The course therefore starts with an overview over the macroeconomic forces that determine exchange rates. We then examine the challenges unexpected changes in foreign exchange rates pose for firms. We discuss whether and how these firms (should) manage their exposure to currency fluctuations.

Next, we broaden our focus and study how to discount non-USD cash flows, accounting for international differences in inflation, taxation, and risk. We then turn to financing decisions and show how firms can use global capital markets to lower their financing costs.

In the final part of the course, we study cross-border investment strategies available to financial investors.

Student learning goals

General method of instruction

The course is structured around several business cases that we will discuss in class. In addition, I will summarize the main theoretical concepts and the related empirical findings in a few lectures.

Recommended preparation

Class assignments and grading

The information above is intended to be helpful in choosing courses. Because the instructor may further develop his/her plans for this course, its characteristics are subject to change without notice. In most cases, the official course syllabus will be distributed on the first day of class.
Last Update by Stephan Siegel
Date: 11/29/2006