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| Author : | Jae K. Shim, Ph.D., CPA |
| Course Length : | Pages: 186 ||| Review Questions: 72 ||| Final Exam Questions: 70 |
| CPE Credits : | 14.0 |
| IRS Credits : | 0 |
| Price : | $113.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Finance - Finance for Course Id 855 |
| Description : | This course is designed for managers working for multinational companies (MNCs) as well as accountants, CFOs, controllers, treasurers, and international investors. In a modern economy, neither businesses nor individual investors can afford to be ignorant of the basic concepts of international finance. Changes in exchange rates and differences in national inflation and interest rates can affect the competitive position of businesses regardless of whether they are engaged in international operations. For companies that are engaged in international business, national differences in banking, commercial laws, regulations, and political stability also complicate decision making. Today’s investors must also understand the effects of, and interactions among, exchange rates, inflation rates, and interest rates if they wish to maximize their returns and minimize their risks. The study of multinational finance constitutes an essential component of modern business education. The subject multinational finance is offered in a variety of titles including international finance, global finance, international financial management, or financial management of multinational corporations, etc. at both the undergraduate and graduate levels. Controllers’ Guide to Multinational Financial Management provides a clear and concise introduction to international finance. This course is written and compiled for working professionals engaged in the fields of international finance, global trade, foreign investments, and banking. It may be used for both day-to-day practice and for technical research. This course is a practical reference of proven techniques, strategies, and approaches that are successfully used by professionals to diagnose multinational finance and banking problems. The course covers virtually all important topics dealing with multinational business finance, investments, financial planning, financial economics, and banking. This course will benefit accountants, practicing financial analysts, CFOs, controllers, financial managers, treasurers, money managers, fund managers, investment analysts, and professional bankers, who are engaged in multinational operations. Controllers’ Guide to Multinational Financial Management will enlighten the practitioner by presenting the most current information, offer important directives, and explain the technical procedures involved in the aforementioned dynamic business disciplines. The course applies to large, medium, or small multinational companies. It will help you to make smart decisions in all areas of international finance and banking. You’ll find ratios, formulas, examples, applications, exhibits, charts, and rules of thumb to help you analyze and evaluate any global finance-related situation. |
| Usage Rank : | 15000 |
| Release : | 2022 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Strategic Financial Management: Definition, Benefits, and Example
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 20-Feb-2023 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - 855 |
| Keywords : | Finance, Controllers, Guide, Multinational, Financial, Management, v12, cpe, cpa, online course |
| Learning Objectives : |
Chapter 1
2. Distinguish the factors that complicate financial decision making in an international environment Chapter 2
2. Recognize the different conventions for exchange rate quotation. 3. Compute the rate of exchange for a foreign. 4. Identify the functions of foreign exchange markets. Chapter 3
2. Recognize how the bid/ask rates are used in foreign exchanges. Chapter 4
2. Identify the purpose of hedging in the foreign currency market. 3. Recognize factors in value determination of currency options. 4. Identify different foreign currency contracts and their uses. Chapter 5
2. Recognize how international markets influence of foreign exchange prices. 3. Recognize the impact of economic policies on trade patterns and currency markets. 4. Identify factors affecting the value of the US dollar. Chapter 6
2. Recognize some systems of international exchange rate regulations such as the Bretton Woods System and the European Monetary System. 3. Identify characteristics of special international currency reserves such as special drawing rights. 4. Recognize the causes of the Financial Crisis 2007-2010. Chapter 7
2. Recognize the implications of the interest rate parity (IRP) theory. 3. Identify the influence of interest rates on forward and spot exchange rates. Chapter 8
2. Identify the concept underlying the Law of One Price. Chapter 9
2. Identify the concept of the Fisher Effect and the relationship between real interest rates in different countries. Chapter 10
2. Identify how the efficient market hypothesis is used to predict the foreign exchange rates. Chapter 11
2. Recognize how hedging techniques can decrease uncertainty. 3. Identify strategies for eliminating some transaction exposure. 4. Identify the contracts that can be used to hedge risk. Chapter 12
2. Recognize the functional currency of the firm. 3. Identify different methods for translating financial statements. Chapter 13
2. Identify methods and objectives for a company to minimize operating exposure from changes in various exchange rates. 3. Recognize strategies for controlling the degree of operating exposure to exchange rate changes. Chapter 14
2. Identify the purpose of quasi-government institutions that help businesses control credit risk, such as the Foreign Credit Insurance Association. Chapter 15
2. Recognize the principle behind practices such as multilateral netting. 3. Recognize international business practices such as countertrade. Chapter 16
2. Identify the special reasons for using Eurobonds rather than domestic bonds. Chapter 17
2. Recognize methods for reducing political risk prior to making foreign investments. Chapter 18
2. Recognize methods for evaluating proposed direct foreign investments. 3. Recognize the most frequently used methods of analyzing international capital budgeting. Chapter 19
2. Recognize different types of multinational banking organizations. Chapter 20
2. Compute the total return of an international investment. 3. Identify instruments designed to facilitate international investment. |
| Course Contents : | Chapter 1: Essence of Multinational Finance Learning Objectives Importance of International Financial Management Benefits of International Finance Multinational Companies Foreign Competition International Investors Types of International Risks Currency Risk Political and Credit Risks Conclusion Chapter 1 Review Questions Chapter 2: Currency Exchange Rate Learning Objectives Exchange Rate Determination Ratios of Currency Exchange Direct and Indirect Quotation Interrelated Sets of Prices Foreign Exchange Market Appreciation of the Dollar Conclusion Chapter 2 Review Questions Chapter 3: Spot, Forward, and Futures Markets Learning Objectives Fundamentals Spot vs. Forward Foreign Exchange Trading Bid and Offer Rates Bid/Ask Spreads Determinants of the Spread Forward Contracts Currency Futures Contracts Contract Specifications Trading Currency Futures Conclusion Chapter 3 Review Questions Chapter 4: Currency Options Learning Objectives Fundamentals Nature of Options Contracts Trading in Options Contracts Call vs. Put Call Options Currency Options vs. Current Futures Determinants of Option Prices Value of Call Options Value of Put Options Types of Foreign Currency Options Markets Speculations in Options Buyer of a Call Writer of a Call Buyer of a Put Writer of a Put Option Pricing and Valuation Key Concepts Pricing Sensitivity Conclusion Chapter 4 Review Questions Chapter 5: Floating Exchange Rates Learning Objectives Foreign Trade Effect of Imports Effect of Exports Determination of Exchange Rate International Borrowing and Lending Effect of Borrowing Effect of Lending Balance of Payments Conclusion Chapter 5 Review Questions Chapter 6: Government Intervention in Currency Markets Learning Objectives Fundamentals Direct Intervention Indirect Intervention Monetary Policy Fiscal Policy Jawboning Multinational Arrangements The Gold Standard Bretton Woods International Monetary Fund European Monetary System The Financial Crisis 2007-2010 Conclusion Chapter 6 Review Questions Chapter 7: Forward Exchange Rates Learning Objectives Exchange Rate Speculation Unbiased Predictors of Future Spot Rates Impacts of Interest Rate Interest Rate Arbitrage Interest Rate Parity Deviations from Interest Rate Parity Conclusion Chapter 7 Review Questions Chapter 8: Inflation Rates and Currency Values Learning Objectives Fundamentals Law of One Price and Purchasing Power Parity Law of One Price - Absolute PPP Purchasing Power Parity Deviations from Purchasing Power Parity Conclusion Chapter 8 Review Questions Chapter 9: International Capital Market Equilibrium Learning Objectives Fisher Effect International Fisher Effect The International Parity Conditions and the Global Fisher Effect Conclusion Chapter 9 Review Questions Chapter 10: Forecasting and the Efficiency of International Markets Learning Objectives Needs to Forecast Exchange Rates Forecasts Implied by the Parity Conditions Interest Rate Parity Theory Fisher Price Effect Purchasing Power Parity Forecasting Techniques Fundamental Forecasting Market Based Forecasting Technical Forecasting Mixed Forecasting Fixed Exchange Rate System A Framework for Evaluating Forecasts Currency Forecasting Service Efficient Markets Hypothesis Conclusion Chapter 10 Review Questions Chapter 11: Foreign Transaction Exposure Management Learning Objectives Fundamentals Types of Foreign Exchange Exposure Ways to Neutralize Exchange Risk Nature of Transaction Exposure Techniques to Manage Short-Term Transaction Exposure Forward Contracts Futures Contracts Money Market Hedges Use of Options Cross Hedging Techniques to Manage Long-Term Transaction Exposure Parallel Loans Currency Swaps Credit Swaps Conclusion Chapter 11 Review Questions Chapter 12: Foreign Translation Exposure Mangement Learning Objectives Nature of Translation Exposure Translation of Foreign Currency Financial Statements Determination of the Functional Currency Use of Translation Procedures Use of Remeasurement Procedures Techniques to Manage Translation Exposure Conclusion Chapter 12 Review Questions Chapter 13: Foreign Operating Exposure Management Learning Objectives Fundamentals Nature of Operating Exposure Causes of Operating Exposure In Relation to Transaction and Translation Exposure Techniques to Manage Operating Exposure Matching Cash Flows Global Diversification Financing Strategies Conclusion Chapter 13 Review Questions Chapter 14: Exports and Imports Financing Learning Objectives International Credit Risk Types of Letter of Credit Letter of Credit Process Functions Documents Required Banker's Acceptances Summary Alternatives to the Letter of Credit Forfaiting Government Guarantees and Insurance Conclusion Chapter 14 Review Questions Chapter 15: Working Capital Management Learning Objectives Cash Management Remittances Marketable Securities Receivables and Payables Factoring Countertrade Inventory Management Advance Purchase and Stockpiling Transfer Pricing Free-trade Zones Short-Term Borrowing Euronotes and Euro Commercial Paper Fronting Loans Conclusion Chapter 15 Review Questions Chapter 16: Global Financing Learning Objectives Medium-Term Financing Leasing Long-Term Debt Financing Foreign Bonds Eurobonds Equity Financing Benefits Sources of Funds Conclusion Chapter 16 Review Questions Chapter 17: Political Risk Management Learning Objectives Impacts of Political Risks Expropriation Nationalization Government Interference Taxation Political Risk Measures Macro-Level Assessment Subjective Methods Quantitative Methods Techniques to Manage Political Risk Prior to Investing During Operations Subsequent to Seizure Risk Responses Conclusion Chapter 17 Review Questions Chapter 18: Foreign Direct Investment Learning Objectives: Fundamentals Theory of Comparative Advantage Nature of Foreign Direct Investment Methods of Direct Foreign Investment Motives for Direct Foreign Investment Political Motives Economic Motives Competitive Motives International Capital Budgeting Value of Foreign Currency Cash Flows Net Present Value Internal Rate of Return Adjusted Present Value Comprehensive Illustration Conclusion Chapter 18 Review Questions Chapter 19: International Banking Learning Objectives: Eurobanks and the Eurocurrency Markets Multinational Banking Structures Correspondent Banks Affiliate Banks Consortiums and Syndicates Subsidiary Banks Edge Act Corporations International Banking Facilities Foreign Branches Resident Representatives and Banking Agencies Central Banking System International Monetary Fund Development Banks European Monetary Union Conclusion Chapter 19 Review Questions Chapter 20: International Investing and Diversification Learning Objectives: Advantages of International Investing Broader Stock Selection Higher Prospective Returns Reduction of Risk Limitations of International Investing Currency Risk Political Risk Institutional Obstacles Ways to Invest Globally Foreign Securities American Depositary Receipts Closed-End Funds Exchange-Traded Funds Mutual Funds International Bonds Foreign Convertibles International Money Markets Shares of U.S.-Based Multinational Corporations International Mutual and Index Funds Types of International Funds Sources of Information Conclusion Chapter 20 Review Questions Appendix A: International Business Planning Checklist Appendix B: Use of Derivatives Appendix C: Use of Currency Swap Appendix D: Risks Related to International Operations and Financial Results Glossary |
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