Objectives

Four dimensions characterize the special problems encountered by the international financial officer. They are: (1) The multiplicity of currencies, and attendant problems related to nominal contacts; (2) The misalignment of exchange rates vis-a-vis commodities p[rices and the attendant problems of competitiveness; (3) The partial segmentation of capital markets producing potential differences in costs of capital across the world; and (4) The multiplicity of tax jurisdictions. These four issues will be addressed in this course with the objective of preparing the student to careers in corporations with large operations abroad or across borders, or to careers in international banks.

Selected Topics

-The foreign exchange market, 
-Exchange rate behavior, 
-Exchange rate forecasting, 
-International portfolio choice, 
-International accounting, 
-Exchange risk exposure measurement, 
-Currency hedging techniques, 
-Capital budgeting for international projects, 
-Sources of financing worldwide, 
-International taxation, 
-Tax planning 
-Intracorporate fund flows

Michael Adler and Bernard Dumas, The Principles of International Corporate Finance,manuscript.

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