This course begins with a macroeconomic perspective and introduces students to international financial markets. Students examine the economic and governmental factors that influence exchange rates and study currency derivatives which are commonly traded to profit from or hedge against expected changes in foreign currencies. The perspective is then microeconomic. Students examine financial issues faced by managers of firms that are engaged in international business. These include: the measurement and management of exchange rate risk, multinational capital budgeting, and the assessment of both domestic and foreign sources of funds to finance long-term projects. Current issues in the international market and real-life problems in decision oriented cases are analyzed.
Prerequisites: BUS 315 or permission of instructor. All prerequisite courses must be C- or higher.