Course Description

This three days International Finance workshop covers a broad range of related topics, both theoretical and empirical, in international finance. The workshop will in particular be geared towards the current issues in the global market and its effect on the local market (the client location), including both money and the capital markets, foreign exchange, and risk management.

Learning Outcome

By attending  this three days International Finance Workshop delegates will be able to evaluate the merits of an overseas investment.

By the end of the course, participants will be able to:

  • Understand and explain the Currency Market.
  • Identify the key factors effecting the Currency Market
  • Explain the process of Foreign Exchange Rate Determination
  • Explain the Rate of return
  • Identify and explain the cost of capital for a foreign investment
  • Measuring and managing operating exposure

 

Day One

1- International Financial Markets.

  • International Financial Management Environment: The rise of Multinational Corporation, the internationalisation of business & finance, Multinational Financial Management
  • Balance Of Payments: Components of BOP account, International flow of goods, services & capital, current account deficit.

2- Theories Of Exchange Rate Determination.

  • International Monetary System: Alternative exchange rate systems – Five market mechanism, History of international monetary system, European monetary system, Emerging market currency crises
  • Determination Of Exchange Rates: Understanding exchange rates, equilibrium spot exchange rate, The role of central banks, Expectations and asset market model of exchange rates

Day Two

3- Foreign Exchange Market

  • The Foreign Exchange Market: Introduction to currency market, International trade and capital transactions, organization of foreign exchange market, Spot market, Currency Arbitrage, Mechanics of spot transaction, Forward market
  • Currency Futures And Options Markets: Futures contract, Currency Futures, Forward vs. Futures Contract, Currency options, Types of currency options, Use of currency options

4- Risk Management

  • PESTEL Analysis: Measuring and managing operating exposure
  • Parity Conditions: Arbitrage & law of one price, Parity conditions – Purchasing Power Parity
  • Rate of Return: Factors influencing the calculation of rate of return in developing countries.

 

Day Three

5- Sources of international finance

  • The Cost Of Capital For Foreign Investment: The cost of equity capital, Weighted Average Cost of Capital (WACC) for foreign investment, Discount rates for foreign projects, Establishing a worldwide capital structure
  • Foreign Investment & Capital Budgeting For Multinational Corporation: Theory of MNC, The strategy of MNC, Designing a global expansion strategy, basic of capital budgeting for MNC, International cash flow, Alternative capital budgeting frameworks, Foreign investment analysis

6- Capital and Profit Repatriation

  • The local laws effecting the Foreign Investment: share holding percentage, capital repatriation, dividend repatriation, double taxation
  • The capital country of origin laws : The tax regime of the country of origin of the capital effecting the investment