Course detail

International Finance

FP-EREifPAcad. year: 2018/2019

Introduction to International Finance, Foreign Exchange Exposure, Credit Checking, Political Risk Assessment and Management, Terms of Payment and Doing Business Internationally, International Monetary System, European Monetary Union, International Financial Institutions, Export Credit Agencies, Foreign Direct Investments and Project Finance, Foreign Direct Investments and Capital Budgeting.

Language of instruction

English

Number of ECTS credits

5

Mode of study

Not applicable.

Offered to foreign students

Of all faculties

Learning outcomes of the course unit

Students will be able to identify individual needs according to the area of company international activities, they will be aware of the financial backing of these needs, they will be able to define and apply external resources for export financing, as well as methods of hedging.

Prerequisites

Knowledge of corporate finance, knowledge of statement and accounting procedures for entrepreneurs, knowledge of international business.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course contains lectures that explain basic principles, problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

The credits are granted on the following conditions: active participation in seminars, presentations of the essay in a predetermined time. The essay rating affects the final assessment of weight 30%.
Examination requirements: knowledge of subject and its practical applications. Form of examination is combined: written test and if necessary oral examination.
The test is classified according to ECTS.

Course curriculum

• Introduction to international finance, the Balance of Payments
• The history and the evolution of the international monetary systém
• Exchange rate regimes
• The European Monetary Union
• International financial institutions
• Introduction to multinational corporation management
• Financing a multinational corporation
• Foreign investments and investment strategy of multinaltional corpoarations
• Multinational capital budgeting and capital structure
• Taxes and multinational business strategy – international taxation of income

Work placements

Not applicable.

Aims

The goal is to get to know and understand:
Framework conditions for the management of corporate finance in international area;
Payment conditions in export contracts, taking into account the potential risks;
Information sources for assessing the business and financial solvency of foreign business partners or other parties
Disposable Payment and Paying-hedging instruments in foreign trade, which may be different variations of smooth payments or documentary payments;
Short-and medium-and long-term refinancing instruments, such as bank loans (eg, state-supported by the Czech Export Bank), factoring, forfeiting, export leasing, etc.;
Security tools in a variety forms, contracts providing exchange rate risk, credit risk by providing export credit insurance and various forms of bank or government guarantees.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BUTLER, Kirt C. Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations 4th ed. Chichester, West Sussex; Hoboken, NJ: J. Wiley. ISBN 978-1-405-18118-1.
MADURA, J. International financial management. 12th ed. Stamford, CT: Cengage Learning, 2015. ISBN 978-1-133-94783-7.
MOFFETT, M. H. – STONEHILL, A. I. – EITEMAN, D. K. Fundamentals of multinational finance. Boston, Mass.: Pearson/Addison-Wesley, 2006. ISBN 0-321-28031-8.
SHAPIRO, A. Multinational financial management. Hoboken: Wiley, 2010. ISBN 978-0-470-45035-2.

Recommended reading

BALDWIN, R. – WYPLOSZ, CH. The economics of European integration. 4th ed. McGraw-Hill Education - Europe, 2012. ISBN 978-0077131722.
KRUGMAN, P. R. – OBSTFELD, M. – MELITZ, M. J. International economics: theory & policy. Boston, M: Pearson, 2012. ISBN 978-0-273-75409-1.
MORRISON, J. The international business environment: global and local marketplaces in a changing world. Houndmills, Basingstoke, Hampshire, New York: Palgrave Macmillan, 2006. ISBN 978-1-4039-3691-2.

Classification of course in study plans

  • Programme MGR-Z Master's

    branch MGR-Z , 1 year of study, winter semester, elective

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

Syllabus

• Introduction to international finance, the Balance of Payments
• The history and the evolution of the international monetary systém
• Exchange rate regimes
• The European Monetary Union
• International financial institutions
• Introduction to multinational corporation management
• Financing a multinational corporation
• Foreign investments and investment strategy of multinaltional corpoarations
• Multinational capital budgeting and capital structure
• Taxes and multinational business strategy – international taxation of income

Exercise

13 hod., optionally

Teacher / Lecturer

Syllabus

Active disscussion on topics of lectures, case studies, presentations of seminar papers.