30151 - PRINCIPLES OF INTERNATIONAL FINANCE
Course taught in English
Class-group lessons delivered on campus
To feel comfortable in this course, you should be familiar with basic topics of corporate finance having a basic knowledge of concepts like risk, return, capital structure and the CAPM.
The course explores the complexities of multinational financial management, ranging from the management of foreign currency exposures (to determine a subsidiary’s capital structure or to value an investment in a risky country) to the managerial and environmental considerations that make multinational financial decision-making so challenging. Financial decision making in the multinational setting requires a sound understanding of: 1) the extension of traditional finance considerations to a more complex global setting (i.e. Exchange Rate Effects, Global CAPM); 2) how institutional constraints can create obstacles and opportunities for multinational firms (i.e. Opportunities created by different markets); 3) the managerial objectives that can often limit the relevance of traditional financial objectives or institutional opportunities. The framework developed in the course suggests how to balance these three relevant factors: complex financial incentives have to be integrated with institutional obstacles and opportunities and aligned with managerial objectives. The goal is then to offer both a clear framework and a set of operative tools to understand the relationship between multinational firms and international financial markets. The whole structure of the course is applied, involves several real-world cases that are discussed in class, and is oriented to develop capabilities to understand and use international finance methodologies and practices used around the world.
- The International Financial Environment.
- International Financial Markets.
- International banking.
- Country risk analysis.
- Foreign direct investment (FDI).
- Valuing Cross Border Investments.
- International equity markets.
- Cross Border Financial Opportunities.
- International syndicated loans and bond markets.
- Assessment of long-term financing in foreign currencies.
- Multinational capital budgeting in project financing.
- Banking and foreign exchange markets.
- Express an intuitive and real world grasp of the concepts and issues in international finance.
- Appreciate and be aware of the complexities financial managers face as they move from a domestic to an international arena.
- Understand various aspects of international financial management related to the structure and functioning of international financial markets and international corporate finance, being able to move from the needs of the firm to the financial instruments and services (securities issues, international equity and debt markets, multinational capital budgeting and structured finance deals) available to cater to those needs.
- Apply international financial methodologies and practices used around the world to analyze and manage real-world transactions and financial deals.
- Evaluate the overall financial system and formulate considerations on financing/investment decisions taken on global debt, equity and currency markets, mostly from a multinational company perspective.
- Face-to-face lectures
- Online lectures
- Guest speaker's talks (in class or in distance)
- Case studies /Incidents (traditional, online)
- Interactive class activities (role playing, business game, simulation, online forum, instant polls)
- Outstanding guest speakers from the real world of finance are invited into the classroom in order to provide students with access to their expert perspectives. Guest lectures help students improve their learning in a more interactive, topic specific way. Guest lectures are used to make classes more approachable and appealing to students.
- Case studies allow the application of theoretical concepts bridging the gap between theory and practice. Case studies provide a rich basis for developing students’ problem solving and decision making skills.
Final written exam for both attending and non-attending students, based on multiple choice questions, open questions and exercises. Students can opt for a partial exam on the topics of the first half of the course and a second partial exam at the end of the course. Further details on all the points are given in the syllabus available at the beginning of the course.
The course is totally based on a new book entitled "Principles of International Finance", Bocconi University Press, 2022 (Author Gimede Gigante), teaching notes and slides prepared by the teacher, readings, ad-hoc cases and professional software made available through web. At the beginning of the course, students receive a detailed syllabus in which is specified session by session the usage of the above-mentioned documents.