International Capital Markets module (BU30007)

Learn about investing across borders, the history and current operation of multinationals, the role of corporate treasurers and the wider economic environment.

Explore the topics of exchange rates, interest rates, markets and political risk.

Understanding International Capital Markets allows investors to spread their portfolio to reduce risk, allows investment to flow where it is most needed encouraging economic growth as well appreciating the possibilities and risks that investing across borders creates.
 

What you will learn

In this module, you will:

• explore financial management issues in an international context
• examine different exchange rate systems and their practical implications, as well as previous and potential financial crises
• understand the use of derivatives (forwards, futures, options and swaps) and how they can be used to hedge currency risk
• discuss Foreign Direct Investment (FDI), the motivations and how multinational capital investment decisions can be evaluated
• learn about the risks associated with international investments, including financial and political risk, as well as how these risks may be measured and managed
• study recent trends in stock markets and the reasons that may explain these trends

By the end of this module, you will be able to:

• understand the international economic and political environment, capital markets, risks, theories, foreign direct investment motivations, and principles of capital budgeting in the context of multinational companies
• critically evaluate research in international financial markets and management and apply theoretical knowledge to real-world financial problems faced by multinational corporations
• solving quantitative problems using financial data, construct well-balanced arguments, analyse and interpret financial data, and link course material to articles in financial journals
• read current articles in leading finance journals and gain valuable insight, participate in classroom debates, and understand the challenges of applying academic theories to real-world international financial problems
• understand career opportunities and challenges in treasury, banking, and finance fields

Assignments / assessment

• Coursework (20%)
• Final exam (80%)

Teaching methods / timetable

This module will be taught in-person, each lecture will last two-hours and each tutorial one-hour.

During certain weeks additional sessions may be arranged to provide additional examples or invite guest lecturers.

There are 11 weeks of teaching. For this module, the exact dates of teaching and/or reading weeks are to be confirmed.