Course info

International Financial Management indicates; in this course we are concerned with financial management in an international setting. Financial management is mainly concerned with how to optimally make various corporate financial decisions, such as those pertaining to investment, foreign exchange markets, financing, dividend policy, and working capital management, with a view to achieving a set of given corporate objectives. In Anglo- American countries as well as in many advanced countries with well-developed capital markets, maximizing shareholder wealth is generally considered the most important corporate objective. Why do we need to study “international” financial management? The answer to this question is straightforward: We are now living in a highly globalized and integrated world economy. Undoubtedly, we are now living in a world where all the major economic functions—consumption, production, and investment—are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. Although we may be convinced of the importance of studying international finance, we still have to ask ourselves, what’s special about international finance?
Three major dimensions set international finance apart from domestic finance. They are:
1. Foreign exchange and political risks.
2. Market imperfections.
3. Financial Markets Expanded opportunity set.
This course will briefly describe each of the key dimensions of international financial management.