Global Financial Management

FIN4570 Global Financial Management
4 General Elective CreditsThe central theme of this course is how to manage the finances of a multinational firm. It devotes attention to managing the short-term finances of a multinational, including topics like centralizing cash management, netting, and transfer pricing. It then deals with long-term financial management of the multinational. That section includes capital budgeting in the multinational context, capital structure decisions, and also studies how a multinational can sometimes have a lower cost of capital than a single-country firm of the same size. The third major theme is how the multinational can optimize its relationship with the capital markets, including the national stock markets where its subsidiaries operate. This section includes a discussion of the opportunities created for multinational companies by international portfolio investment. If time permits, there will be a section on how to operate in countries with inconvertible or hyperinflationary currencies. The course deals with the international financial environment, meaning topics such as exchange rates, balance of payments, and cross-border capital flows, only to the extent necessary to put the financial decisions for firms operating in more than one currency into proper context.

Prerequisites: SME2021