Aims

In International Corporate Finance, we blend theory, examples and practical case studies to allow students to truly understand what to do when confronted with an international financial problem at the corporate level. We explore international financial markets, with an eye on risk management; and we develop valuation methodologies needed to determine the value of an international investment project. The course identifies the sources of risk that arise in international financial markets (for example currency risk and credit risk in international trade) and shows how these risks can be managed. Apart from this, we reflect on how management affects the firm’s value.  The course provides the student with practical tools that can be used to fulfill the tasks of an international finance manager. These tasks include (i) financing in the narrow sense (funding, financial investments), (ii), risk management (especially hedging, that is, risk reduction), and (iii) help in decision making by offering valuation of commercial or investment proposals.

At the end of the course, the student should be able to:

• identify and quantify the exchange rate risk in different aspects of business operations (import/export transactions, foreign loans and investment, ...) and suggest efficient solutions to manage these risks.
• calculate the cash flows of financial derivatives (e.g. currency options and forwards) and use these derivatives to manage exchange rate risks in an international company.
• demonstrate the difference between domestic and international models for corporate finance and understand the necessity of the application of a valuation methodology that is conform the international setting in which the company operates.
• evaluate various forms of foreign direct investment.
• calculate the value of international investment projects by applying a discounted cash flow approach or a real option analysis.

Previous knowledge

The admission criteria for the programme can be found in the programme catalogue. It is advisable to have completed the following course first: Introduction to financial reporting.

Identical courses

This course is identical to the following courses:
HME40A : International Corporate Finance

Is included in these courses of study

• Master in de handelswetenschappen (dag + avond, programma voor studenten gestart vóór 2024-2025) (Brussel) (Specialisatie algemeen management (avond)) 60 ects.
• Master in de bedrijfskunde (Brussel) 60 ects.
• Courses for Exchange Students Faculty of Economics and Business (Brussels)
• Master in de handelswetenschappen (programma voor studenten gestart in 2024-2025 of later) (Brussel) (Specialisatie algemeen management (avond)) 60 ects.