NBA 5540 - International Finance

Fall. 3 credits. Letter grades only (no audit).

Prerequisite: NCC 5060 or equivalent. Enrollment limited to: graduate students in business or related fields.

W. Bailey.

Applies principles of finance to the international setting. International finance is different in two basic respects: (1) the existence of multiple currencies adds risk to investment and financing decisions; (2) when corporations and portfolio investors cross international borders, both problems and opportunities arise. This course focuses on these issues and highlights how finance theory can be extended to address them. Students apply the basic principles of international finance to a variety of problems. The course helps students understand the ideas and research results of international finance and adapt what they learn to the practical problems in the increasingly globalized business world. The first part of the course outlines exchange rate volatility, barriers to international capital flows, and the value of international diversification. The second part presents a variety of problems, examples, and applications from the three basic themes described in part one. Spreadsheet assignments and a group presentation requiring data analysis develop research skills and illustrate academic concepts. Exams consist of computational, short answer, and short essay questions.