Course Description
Economic globalization over last decades has greatly increased foreign investments and international trade in goods and assets. For businesses and investors, access to international markets comes with opportunities in addition to risk, and the course examines the increased benefits of international diversification and examines the risks involved in operating and investing in such locations. Topics include the forward foreign exchange market, interest rate parity, portfolio investment in international capital markets, foreign direct investment and financing decisions of multi-national corporations, political and country risks.
Intended Learning Outcomes
CILO-1: Identify the nature of exchange rate risk and how it should be managed.
CILO-2: Identify the risks and benefits of investing in international capital markets.
CILO-3: Identify major investment and financing decisions faced by MNCs.
CILO-4: Identify political and country risks and their influence on international capital budgeting.