This course explores global finance from the multinational enterprise perspective. Globalization demands that students have knowledge of global finance concepts in order to excel in the 21st century business world. Students will investigate a wide range of related topics including:
- Exchange rate risk and political risk
- Balance of payments and international economic policy
- Cost of capital and capital budgeting
- Translation, transaction, and operating exposure
The course project is an Impact Analysis: Assessing Global Effects on a Multinational Enterprise. Students will analyze how concepts such as exchange rates, balance of payments, foreign exchange markets, and parity conditions affect a multinational enterprise.
Course Learning Objectives
- Discuss the benefits and risks of operating in foreign countries.
- Analyze the effects of exchange rates on a multinational enterprise.
- Analyze the effects of a country’s economic policies on the balance of payments and a multinational enterprise.
- Determine a multinational enterprise’s exposure to exchange rate risk and how it could reduce its exchange rate exposure.
- Apply parity conditions and currency forecasting to a multinational enterprise.
- Assess the impact of globalization and international capital markets on a multinational enterprise.
- Analyze the cost of capital and capital budgeting for a multinational enterprise.
- Evaluate the impact of translation, transaction, and economic exposure on a multinational enterprise.