This course studies the financial management of multinational corporations. The course begins by reviewing the theory of comparative advantage, the international monetary system, and global money and capital markets. The major focus, however, is on the financial policies and strategies of multinational enterprises. Topics include the methods and process of financing international trade, risk analysis, hedging and arbitrage, multinational capital budgeting, and working capital management. and tax considerations in making multinational financial decisions. The course also considers balance of payments, mechanisms of balance of payments adjustments, and the effects of trade barriers and restrictions on exchange rate movements.

Prerequisite: FINA3000