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2010/1 Module Catalogue
 Module Code: MANM200 Module Title: INTERNATIONAL FINANCE
Module Provider: School of Management Short Name: MANM200
Level: M Module Co-ordinator: AGYEI-AMPOMAH S Dr (SoM)
Number of credits: 15 Number of ECTS credits: 7.5
Module Availability
Assessment Pattern

Unit(s) of Assessment

Weighting Towards Module Mark (%)

Group assessment


Two hours final examination


Module Overview

In today's global financial markets and business activity, managers are increasingly concerned with decision making across borders in complex and dynamic business environment. This module will provide a good understanding of finance in a global context. It analyses the complexity of the international financial environment and how if affects the operations of both domestic and multinational companies. It introduces financial derivatives and examines various strategies and techniques that can be employed to manage the risks associated with international business transactions and investments.


An understanding of Finance/Financial Management to the level of MA303 Foundations of Finance is essential

Module Aims

The aim of this course is to provide participants with a clear understanding of the foundations of International Finance by using a blend of theoretical concepts and empirical evidence. It introduces the role of financial management in multinational corporations (MNCs) and in Foreign Exchange Markets; investigates the determinants of foreign exchange and the measurement of Foreign Currency Exposure: Transaction, Translation and Economic Exposures will then be covered. It also introduces and applies financial derivatives to risk firm's risk exposures of foreign exchanges and interest rate.

Learning Outcomes

At the end of this module students will be able to:

  • Develop and enhance knowledge and understanding of the theories, concepts, principles and techniques and inter-disciplinary nature of international finance
  • Relate practical issues in international financial management to theory
  • Critically assess the implications of operating in an increasingly complex and dynamic international business environment
  • Understand alternative foreign exchange risk measurement and management techniques in accordance with current legal and professional requirements
  • Understand the benefits  and complications of investing and operating in foreign environments with different corporate governance systems
  • Understand and evaluate various financial derivative instruments
  • Choose appropriate derivative instruments for hedging risk in portfolio setting and in international financial management
Module Content
  • Introduction to the role of financial management in multinational corporations 
  • Nature and sources of international funds-International money and
  • capital markets  
  • Foreign exchange markets and exchange rate determination 
  • Exchange rate parity conditions 
  • Purchasing Power Parity, the International Fisher effect and Forward Markets  
  • Introduction to derivative instruments  
  • Measuring and Managing Foreign Currency Exposure: Transaction,
  • Translation and Economic Exposure  
  • Long-term decision-making: International Capital Budgeting
Methods of Teaching/Learning

The teaching and learning strategy is designed to allow a student to come to grips with what is essentially a subject of mixed theory and practice.

  • Weekly lectures and tutorials
  • Regular consultation on a weekly basis (tutors/lecturers will be available for answering questions from the student during their office hours)
  • ULearn discussion forums to address any issues related to the content, learning and teaching environment, and delivery of the module and/or specific topics
  • Utilizing ULearn as the main pool of resources including lecture handouts, tutorial problems, mock exercise, and discussions. Besides using ULearn as the main means of communication to establish resource efficiency and communicational effectiveness
  • Support of lecture material by directed reading in selected tectbooks and journal articles
Selected Texts/Journals
Main Text:

Bekaert and Hodrick (2009) International Financial Management

Recommended Text:  

Eiteman, D K, Stonehill, A L and Moffet M H (2007) Multinational Business Finance, 11th edition, Pearson. 

Supporting Texts:  

Buckley A (2004), Multinational Finance, 5th edition, Prentice Hall  

Copeland, L S, (2004) Exchange Rates and International Finance, 4
th edition, Addison-Wesley  

, J C (2007) Fundamentals of Futures and Options Markets, 6th edition, Prentice Hall  

Krugman, P. and Obstfeld, M. (2006) International Economics: Theory and Practice, 7
th edition, Pearson  

Levy, M D (2004) International Finance, 4th edition, Routledge.  

Shapiro A C (2006) Multinational Financial Management, 8th edition, John Wiley & Sons. 

Various relevant journal articles as recommended by the lecturers/tutors.

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