This course is organized in cooperation with the University of Georgia and provides an introduction to the many aspects of financial decision making within multinational corporations. The course covers both the main features of foreign exchange markets and selected aspects of international corporate nance, including exchange rate exposure, sovereign risk, the cost of capital, and the evaluation of foreign projects.

The course is presented in two major sections:

1. Foreign exchange markets and instruments

• Globalization & the multinational firm
• The international monetary system
• The market for foreign exchange
• International parity relationships & forecasting foreign exchange rates
• Futures & options on foreign exchange

2. International corporate finance

• Management of transaction exposure
• Management of economic exposure
• Financing Decisions within the Firm
• Valuing Cross-Boarder Investments
• Project Finance

Students will develop a general understanding of foreign exchange markets and instruments. After completing the course, students will be able to:

• Perform currency conversions using bid-ask quotes and cross-rates.
• Describe the actions taken to exploit a given arbitrage opportunity.
• Evaluate nancial and organizational strategies that a rm can use to mitigate risk when conducting business in a global market.
• Understand issues involved with company valuations across countries.

Attendance in all online sessions is mandatory and unexcused absences will not be accepted.

The course will be composed of lectures, class discussion, problems, and case applications. The structure of the course is flexible and the course outline is tentative. Each of these sections will include textbook assignments and case analyses. Students will be asked to write and present a thoughtful and complete case analysis. All assigned material should be read before class. 

The course grade will be determined as the weighted average of the following course components:

• 20% Quizzes
• 10% Mid-term Exam
• 10% Final Exam
• 30% Case Reports
• 5% Peer Evaluation
• 25% Course Participation

The individual components map to grades as follows:

WU students: positive completion of Course I and Course II

Dr. Daniel Rettl: daniel.rettl@uga.edu