Examine financial management of the multinational corporation.
Duration: 8 weeks
In MBA 619 International Finance and Economics, you will focus on global investment and trade, and become familiar with key theories that justify international business. Discover how various international financial instruments and markets are leveraged by multinational corporations (MNCs). The cash flows of MNC depend on exchange rates You will gain insight into the factors that influence those rates, as well as currency derivatives which can be used to speculate on exchange rate movements.
Governments have the ability to influence exchange rate movements. These influences have economic consequences, which you will come to understand. You will also explore the impact of inflation and of interest rate movements on exchange rates, as well as how arbitrage can realign these rates. Corporations must manage their exposure to exchange rate risk You will study methods for forecasting exchange rates to gauge the feasibility of planned projects.
What You Will Learn in MBA 619
An MNC’s cash flow can be sensitive to exchange rate movements even if anticipated international contractual transactions are hedged. You will evaluate ways to increase the value of an MNC by managing economic exposure and translation exposure. You will also analyze how MNCs manage long-term assets and liabilities and what they must consider when pondering multinational projects. Direct foreign investment (DFI) — investment in real assets such as land, buildings, or even existing plants in foreign countries — carry both potential return and risk. You will delve into international projects by using multinational capital budgeting to compare the benefits and costs of projects.
In a term-long project, you will assume the role of decision maker for a global sweater manufacturing facility in need of a new production facility. You will analyze various options to include building, operating and sourcing in both the U.S. and a foreign country. You will prepare and complete a detailed NPV analysis of these options.
Different locations pose different risks for MNCs, and these risks are often financial or political in nature. You will examine how these companies chose a country for a proposed project or choose to continue conducting business in a given country. As you see how MNCs make long- term financing and capital structure decisions, you will gain insight into methods for minimizing the cost of capital. This in turn, can minimize the required rate of return to make foreign operations viable. You will evaluate the financing of international trade, including short-term funds and short-term investment decisions. Cash management is very complex for an MNC which you will discover as you examine the optimization of cash flows and the investment of excess cash.
Throughout this course, weekly topics may include but are not limited to:
- International Financial Environment
- Currency Exchange Rates and Derivatives
- Exchange Rate Behavior
- Exchange Rate Risk Management
- Economic and Translation Exposure
- Long-Term Asset and Liability Management
- Country Risk and Foreign Project Financing
- Cash Flow Management and Trade and Operations Financing
Course Learning Outcomes
Upon successful completion of MBA 619, you will be able to:
- Discuss the basics of International Monetary System.
- Distinguish between various foreign exchange instruments and transactions.
- Explain the international parity conditions and how they can help forecast foreign exchange rates.
- Plan how to manage interest rate exposure.
- Discuss the basics of sourcing the global securities and equity markets.
Request More Information Today
To learn more about the online Master of Business Administration curriculum from Benedictine University, including International Finance and Economics, call (866) 295-3104 to speak with a program manager or request more information.
Course content and outcomes may vary and are subject to change without notice.