FP-EifPAcad. year: 2020/2021
Introduction to International Finance, Foreign Exchange Exposure, Credit Checking, Political Risk Assessment and Management, Terms of Payment and Doing Business Internationally, International Monetary System, European Monetary Union, International Financial Institutions, Export Credit Agencies, Foreign Direct Investments and Project Finance, Foreign Direct Investments and Capital Budgeting.
Learning outcomes of the course unit
Students will be able to identify individual needs according to the area of company international activities, they will be aware of the financial backing of these needs, they will be able to define and apply external resources for export financing, as well as methods of hedging.
Recommended optional programme components
Recommended or required reading
SHAPIRO, A. Multinational financial management. Hoboken: Wiley, 2010. ISBN 978-0-470-45035-2.
MADURA, J. International financial management. 12th ed. Stamford, CT: Cengage Learning, 2015. ISBN 978-1-133-94783-7.
MOFFETT, M. H. – STONEHILL, A. I. – EITEMAN, D. K. Fundamentals of multinational finance. Boston, Mass.: Pearson/Addison-Wesley, 2006. ISBN 0-321-28031-8.
Planned learning activities and teaching methods
The course contains lectures that explain basic principles, problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.
Assesment methods and criteria linked to learning outcomes
The credits are granted on the following conditions: active participation in seminars, presentations of the essay in a predetermined time. The essay rating affects the final assessment of weight 30%.
Examination requirements: knowledge of subject and its practical applications. Form of examination is combined: written test and if necessary oral examination.
The test is classified according to ECTS.
Language of instruction
Cílem předmětu je vést studenty k porozumění procesu vývoje mezinárodních finančních systémů a jeho aktuálními otázkami, a současně prezentovat specifika finančního řízení nadnárodních společností, tj. pokrývá oblasti procesu internacionalizace, financování exportu a importu zboží, investování na mezinárodních trzích, možností financování na mezinárodních finančních trzích, včetně otázek mezinárodního zdaňování příjmů.
Topics of lectures are as follows:
1. Introduction to international finance, the balance of payments
2. The history and the evolution of the international monetary system
3. Exchange rate regimes
4. The European Monetary Union – the process of the integration of the financial markets and the financial institutions in the EU and their importance for companies, the European single currency
5. International financial institutions
6. Introduction to multinational corporation management: national versus international finance, the rise of the multinational corporation, the process of overseas expansion, designing a global expansion strategy
7. Financing a multinational corporation I. – export and import credits, export credit agencies, export credit insurance
8. Financing a multinational corporation II. – debt and equity markets, international banks and project financing, financing in Europe, in the USA and in Asia
9. Foreign investments – corporate strategy and foreign investment analysis, direct investment and portfolio investment, investment in Europe, in the USA and in Asia
10. Cost of capital and capital structure of the multinational firm, multinational capital budgeting
11. Taxes and multinational business strategy
12. Countertrade; international capital mobility, project finance
13. Current issues in international trade
The goal is to get to know and understand:
Framework conditions for the management of corporate finance in international area;
Payment conditions in export contracts, taking into account the potential risks;
Information sources for assessing the business and financial solvency of foreign business partners or other parties
Disposable Payment and Paying-hedging instruments in foreign trade, which may be different variations of smooth payments or documentary payments;
Short-and medium-and long-term refinancing instruments, such as bank loans (eg, state-supported by the Czech Export Bank), factoring, forfeiting, export leasing, etc.;
Security tools in a variety forms, contracts providing exchange rate risk, credit risk by providing export credit insurance and various forms of bank or government guarantees.
Specification of controlled education, way of implementation and compensation for absences
Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.
Classification of course in study plans
- Programme MGR-EBF Master's, 1. year of study, winter semester, 5 credits, compulsory