This course explores the changing global environment in which multinational corporations operate including international flow of funds, exchange rates, and exposures that might be absent for corporations engaged strictly in domestic business activities. Additionally, this course addresses the various activities in which a multinational corporation must engage in order to be successful. Students will investigate a wide range of related topics including:
- Foreign direct investment and multinational capital budgeting
- Cost of capital and capital structure optimization
- International taxation and the repositioning of funds
- International risk management and financing international trade
Assignments in this course include detailed case study analyses, frequent Forum discussions, individual written reports, and application problems that require calculations.
Course Learning Objectives
- Evaluate various methods of doing business internationally.
- Analyze foreign currency options.
- Manage foreign exchange risks and exposures.
- Determine strategies for minimizing cost of capital, maximizing access to capital, and maintaining a financial structure that balances debt and equity.
- Value a foreign acquisition.
- Calculate a portfolio's risk and return using the international capital asset pricing model.
- Determine strategies for minimizing taxes when operating internationally.