Corporate Financial Management in the Global Market 2600-MRCdz2ZFP

Upon completion of the course, the student:

Knowledge:
• knows and understands the key terminology of international financial markets, including the concepts of spot and forward exchange rates, swap transactions, and currency arbitrage. (K_W01).
• knows and understands the distinction between transaction, translation (conversion), and economic currency risk, identifying their sources and potential impact on a company's financial statements and cash flows. (K_W03).
• understands the mechanisms that determine exchange rates in the short and long run, including the principles of purchasing power parity (PPP) and interest rate parity (IRP).
• knows internal and external methods of currency risk management, including hedging strategies based on derivative instruments (forwards, futures, options, swaps). (K_W05).
• understands the specifics of capital budgeting for international projects, considering factors such as political risk, capital market segmentation, and restrictions on profit repatriation. (K_W05).
• knows and understands international sources of long-term and short-term financing (e.g., Eurocredits, Eurobonds, forfaiting) and can explain the role of the cost of capital in the financial decisions of a multinational corporation. (K_W07).

Skills:
• is able to calculate and interpret a firm's transaction and translation exposure based on simplified financial data. (K_U01).
• is able to design a hedging strategy for a selected currency exposure using forward contracts or currency options and to evaluate its potential costs and benefits. (K_U02).
• is able to conduct a simplified analysis of an international investment project, adjusting the net present value (NPV) method to account for forecasted exchange rate changes and differences in tax rates.(K_U06).
• is able to choose between different international sources of short-term financing by comparing their effective costs. (K_U06).
• is able to prepare an analysis and formulate recommendations for optimizing financial flows within a multinational corporate group, using techniques such as netting or reinvoicing centers.(K_U06).
• Demonstrate the ability for self-directed learning and continuous professional development. (K_U09).

Attitudes:
• is able to think and act entrepreneurially, including initiating a business providing foreign exchange risk management services for companies operating in both national and global markets. (K_K04).
• is ready to critically evaluate different financial management strategies in a global context, considering their economic and ethical consequences and their impact on various stakeholders. K_K05).
• is ready to independently search for information and update their knowledge regarding the dynamically changing international financial environment. K_K05).

The learning assessment will be based on:
1. A written final exam (multiple-choice questions and 2 problem-solving tasks).
2. A team project (3-4 students).
The weight of each assessment component will be as follows:
- Final exam – 80%
- Group project – 20%

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1. Najlepszy Eugeniusz (2013) „Finanse międzynarodowe przedsiębiorstw”, PWE,
2. Jeff Madura, Ariful Hoque, Chandrasekhar Krishnamurti; (2022) International Financial Management Cengage AU,
3. Szopa Andrzej, (2012) „Podstawy inżynierii finansowej”, Wolters Kluwer, 2012
4. Jeff Madura “International Financial Management 12th Edition Cengage Learning 2015.