30151 - PRINCIPLES OF INTERNATIONAL FINANCE
CLEAM - CLEF - BESS-CLES - WBB - BIEF - BIEM
Department of Finance
Course taught in English
GIMEDE GIGANTE
Course Objectives
The aim of this course is to give a very broad picture about international financial markets and international corporate finance moving from the needs of the firm to the financial instruments available to cater to those needs. Subjects that are covered include: international demand for equity and debt financing; the international market for corporate control; in-depth discussion of the economic role of the forward rate and the value of the forward contract; a comprehensive discussion of when and why the firm can increase its value by hedging foreign exchange risk; an economic analysis of the various payment and credit insurance techniques used in international trade. The whole structure of the course is applied, involves real-world examples and is oriented to develop capabilities to understand and use methodologies and practices used on global financial markets.
Course Content Summary
- The international market for corporate control.
- International regulation of financial markets.
- Spot exchange markets.
- Currency future markets.
- Currency options and swaps.
- Purchasing power parity.
- International capital budgeting.
- Exchange risk and capital market segmentation.
- International taxation.
- International bond and money markets.
Detailed Description of Assessment Methods
Textbooks
P. SERCU, R. UPPAL, International Financial Markets and the Firm, South-Western College Pub., 1995, 1st edition.- Chapters: 1, 5-7, 9-11, 16-17, 21-23
- Chapters: 14-15, 31, 33
Prerequisites
Knowledge of the basic topics covered in corporate finance, corporate valuation, and option valuation courses, such as Bocconi courses 30017, 30149, 30150.