The rise in importance and complexity of financial management in an international environment poses a great challenge for financial managers in multinational corporations. The increasing integration of global products and financial markets around the world requires financial managers working for multinational corporations to consider exchange rates, international capital and debt markets, and economic and political risks to achieve shareholder wealth maximization.

This module is intended to provide students the tools needed to understand the global financial markets, the global business environment and the challenges and opportunities these bring to the financial managers of the multinational corporations.

The schedule shown below will be followed. Please read the relevant chapters (other materials that may be distributed through the module webpage) in advance of the lecture.

The Multinational Firm and Globalisation
Understanding Exchange Rates and International Parity Conditions
Balance of Payments and Exchange Rate Systems
Country and Political Risk
Structure of Foreign Exchange (FX) Market and FX Derivatives
Measuring and Managing FX Exposure
International Debt and Equity Financing
Cost of Capital for Multinational Firms

Choice of textbooks (provisional)

Any textbook that is titled “International Financial Management” or “Multinational Financial Management” would be suitable for the module. I will mainly follow the main textbook (Shapiro & Moles) shown below. I recommend the main textbook.

Main textbook

Shapiro, A.C. and Moles, P. International Financial Management, 10th Edition, 2014, Wiley.

Other related textbooks:

Shapiro, A.C, Hanouna P., Atulya Sarin, Multinational Financial Management, 12th Edition - International Student Edition, 2024, Wiley.

Geert, J.B. and Hodrick, R.J., International Financial Management, 3rd Edition – New International Editions, 2021, Pearson