Approach finance from a global point of view.
Once a company takes its place on a global stage, the customary practice of finance must be adapted to the international financial environment. In this arena, a multinational enterprise (MNE) organization must perform with regard to the international monetary system, foreign markets, and more.
To the CEO, going global means more opportunity in new markets. To the CFO, it means new concepts, constraints, regulations, and a keen awareness of international finance.
The multinational enterprise (MNC) isn’t just a domestic company on steroids. It’s managed differently, marketed differently, and financed differently. In FIN 584, you’ll learn the financial challenges of an MNC by collecting data and using theories, mathematics, and statistics to see how problems are solved and decisions are made.
As you see the effect globalization has on individuals and sovereign nations, you’ll become familiar with foreign currencies, their risks, and how to forecast their relative prices (exchange rates). The political risk resulting from foreign investments will become apparent and you’ll gain an understanding of current international issues such as the global financial crisis and appreciate the many factors that created the worst recession since the 1930s.
- Financial market innovations
- Low interest rates
- Enormous debts
- Low margin requirements
- Uncontrolled speculations
Balance of Payments is an international accounting system used to record international transactions such as exports, imports of goods and services, and capital flows. You’ll realize how this system is used to determine trade and monetary policies used to avoid foreign sectors’ effects on domestic economies.
You’ll research and write a topical 5- to 10-page paper that is uses both theoretical and empirical evidence.
You’ll explore the foreign exchange markets, their functions, their transactions, the quotations of the exchange rates, and at inter-market arbitrage, determining the factors that affect the exchange rate.
As you examine how equity is sourced globally, you’ll consider the factors involved in the overall financing of global firms, including the global cost and availability of capital.
Diversification is as important internationally as it is domestically. You’ll gain insight into the international diversification and the reduction of risk, the optimal portfolio, and the calculation of portfolio risk and return.
Politics always plays a role in international business and finance and you’ll see the political risks that can arise, including intellectual property rights, protectionism, and corporate social responsibility.
In addition to learning about multinational capital budgeting from the project and parent point of view, you’ll explore trade relationships and the European integration.
Examine this and more in FIN 584.
Sample Course Topics
- The Global Financial Environment
- The Balance of Payments and the Current Financial Crisis
- The Foreign Exchange Rate
- International Parity Conditions
- Foreign Exchange Exposure
- Financing the Global Firm
- Foreign Investment Decisions
- International Trade Finance and European Union
What You’ll Learn
Through this course, you’ll be exposed to a variety of topics on the global financial environment and the multinational firms.
- Have a global view on financial management of multinational business.
- Understand world financial markets, institutions, and instruments. Be familiar with the openness of global economies and the interdependence of the world markets.
- Appreciate the ethical, social, and justice issues in the international business environment.
- Gain empirical research skills useful for your future occupation or advanced studies.
Becoming a multinational company (MNC) presents both challenges and opportunities for organizations. For more information about The University of Scranton’s online Master of Business Administration degree, request more information or call us today toll-free at (866) 373-9547.
The content presented on this page is representative information for example purposes and is subject to change as course and student needs change over time.