This course explores the financial decisions of firms facing exchange risks in a global capital market. Building on students’ existing understanding of exchange rate determinants, the course examines transaction and economic exposure, hedging activities, capital budgeting, global capital sourcing, and financial strategy. The course emphasizes how developments in global capital and currency markets are related to global operating and strategic decisions and influence financial decision making.


Academic course objectives:


·         Examine the factors that determine the source and structure of international capital sourcing and capital commitments

·         Improve students’ competency in evaluating and establishing appropriate hedging policies for both transaction and economic currency risks in light of corporate strategic objectives

·         Explore issues related to the evaluation and selection of cross-border capital investments


Elements of the course grade:


Class contribution                   25%

Final examination                    50%

Individual paper/project          10%

Group paper/project                15%