The most pervasive problems faced by international managers are those resulting from currency differences and currency risks. This course applies financial and economic theory to the international financing and investment decisions of corporations, financial institutions and individual investors. Reduction of risk through use of forward exchange markets and hedging will be examined. The various methods of moving liquid assets and their constraints will be considered. Capital budgeting decisions and issues regarding capital structure, where the assets and sources of financing are in different economies, are also studied. An extension of the Capital Asset Pricing Model to an integrated world model is considered. A term paper is usually required.
Prerequisite for MBA students: SB/FINE 6100.030 (It is recommended that students take SB/ECON 6510.030 before commencing this course)
Prerequisite for IMBA students: All 5100-series Required Foundations of Management Core Courses (SB/FINE 6100.030 is recommend