GBUS 8303 EMERGING MARKETS FINANCE

This course explores investment and valuation issues that are unique to emerging economies. These economies, with low per capita income, will likely provide substantial growth opportunities for global investors. Students will learn that the risks of investing in these economies are not only substantial but also different from those in developed economies. In this course, students will be introduced to a set of tools and models that help future managers make better investment decisions in emerging markets. Topics covered include capital markets, valuation, risk management, and portfolio management in emerging markets. Both the theoretical and practical sides of direct and portfolio investments in emerging markets will be analyzed and discussed. This course assumes that students have taken Valuation in Financial Markets. It is created for students who wish to pursue careers in investment banking, corporate finance, and international finance.

Academic course objectives:

· Develop a framework for analyzing emerging financial markets in the era of globalization

· Produce a framework for identifying, assessing, and managing risks in emerging markets

· Introduce alternative approaches to both estimate the cost of capital and adapt DCF models in emerging markets

· Create a framework for including real options in making investment decisions in emerging markets

Elements of the course grade:

Class contribution                   30%

Final examination                    50%

Individual paper/project          20%

Web address for additional course information:

http://faculty.darden.virginia.edu/liw/emf/