FIUNNAIFM International Financial Management

School of Business Administration in Karvina
Winter 2021
Extent and Intensity
2/1/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
prof. Ing. Daniel Stavárek, Ph.D. (lecturer)
Guaranteed by
prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
Syllabus
  • 1. Principles of international financial management
    Principles of international financial management. Reasons to engage in international business. Forms of international business – international trade, licencing, franchising, joint ventures, acquisitions of existing operations, establishing new foreign subsidiaries. Managing a multinational corporation. Agency problems. Valuation model for a multinational corporation.
    2. International financial markets
    Reasons and principles of using international financial markets in companies. International financial markets serving a multinational corporation. Foreign exchange market. International money market. International credit market. International bond market. International stock market.
    3. Foreign exchange risk management
    Characteristics of exchange rate risk. Measuring exchange rate movements. Forecasting exchange rates. Measuring exposure to exchange rate fluctuations. Transaction exposure. Economic exposure. Translation exposure. Managing transaction and economic exposure. Managing translation exposure. Internal and external methods of hedging against exchange rate risk – currency forwards, currency futures, currency options, swaps, cross hedging, money market hedging, leading, lagging, netting, currency diversification, natural hedging. Limitations of hedging.
    4. Long-term international asset and liability management
    Characteristics of long-term international assets and liabilities. Foreign direct investments (FDI). Revenue-related motives of FDI. Cost-related motives of FDI. Managing FDI. Host government views of FDI. Multinational capital budgeting. International corporate governance and control. Long-term financing on international financial markets. Sources of equity and debt capital.
    5. Short-term international asset and liability management
    Characteristics of short-term international assets and liabilities. Financing international trade. Payment methods of international trade. Short-term financing on international financial markets. International cash management. Techniques to optimize cash flows.
    6. Country risk analysis
    Country risk in terms of financial management. Country risk factors. Political risk. Economic and financial risk. Techniques to assess country risk. Measuring country risk. Techniques to decrease country risk. Incorporating country risk in capital budgeting. Preventing host government takeovers. Credit rating of the countries.
Language of instruction
English
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