FIN 460 - International Business Finance

Units: 3
Markets and monetary systems in different countries where multinational firms operate. Topics include analyses of exchange rate risk, import/export dynamics, international parity conditions, exchange rate regimes and hedging.

Prerequisites: FIN 300.
Equivalent Quarter Course: FIN 4375.
Possible Instructional Methods: Entirely On-ground, or Entirely Online.
Grading: A-F grading only.
Course Typically Offered: Fall & Spring

Student Learning Outcomes - Upon successful completion of this course students will be able to:

Identify the determinants of currency prices in the foreign exchange (FX) markets;
Distinguish how various exchange rate systems affect currency prices in the FX markets;
Analyze balance of payments and how U.S. trades with its trading partners;
Explain parity conditions which link the prices of goods, interest rates, spot rates and forward rates throughout the world;
Explain how exchange rate exposure may create risks and opportunities for domestic and multinational firms;
Compare and contrast the basic characteristics of various financial instruments (e.g. forward contracts, futures contracts, options, and swaps) and explain how these instruments may be used to hedge against exchange rate exposure.
Examine real world data to apply the parity conditions to determine currency appreciation/depreciation.