|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||13.5|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Finance - Finance for Course Id 855
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 a 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 :||0|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||19-Jan-2019|
|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 - NASBA Registry - 855
|Keywords :||Finance, Controllers, Guide, Multinational, Financial, Management, v08, cpe, cpa, online course|
|Learning Objectives :||
2. Distinguish the factors that complicate financial decision making in an international environment.
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.
2. Recognize how the bid/ask rates are used in the foreign exchanges.
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.
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.
2. Recognize some systems of international exchange rate regulations such as the Bretton Woods System and European Monetary System.
3. Identify characteristics of special international currency reserves such as special drawing rights.
4. Recognize causes of the Financial Crisis 2007-2010.
2. Recognize the implications of the interest rate parity (IRP) theory.
3. Identify the influence of interest rates on forward and spot exchange rates.
2. Identify the concept underlying the Law of One Price.
2. Identify the concept of the Fisher Effect and the relationship between real interest rates in different countries.
2. Identify how the efficient market hypothesis is used to predict the foreign exchange rates.
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.
2. Recognize the functional currency of the firm.
3. Identify different methods for translating financial statements.
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.
2. Identify the purpose of quasi-government institutions that help businesses control credit risk, such as the Foreign Credit Insurance Association.
2. Recognize the principle behind practices such as multilateral netting.
3. Recognize international business practices such as countertrade.
2. Identify the special reasons for using Eurobonds rather than domestic bonds.
2. Recognize methods for reducing political risk prior to making foreign investments.
2. Recognize methods for evaluating proposed direct foreign investments.
3. Recognize the most frequently used methods of analyzing international capital budgeting.
2. Recognize different types of multinational banking organizations.
2. Compute the total return of an international investment.
3. Identify instruments designed to facilitate international investment.
|Course Contents :||
Chapter 1: The What and Why of Multinational Finance
Financial Management of a Multinational Corporation (MNC)
Benefits of Understanding International Finance
What Is International Finance?
Chapter 1 Review Questions
Chapter 2: Foreign Exchange Rate Determination and Foreign Exchange Market
Ratios of Currency Exchange
Interrelated Sets of Prices
Foreign Exchange Market
Appreciation of the Dollar
Chapter 2 Review Questions
Chapter 3: Currency Exchange: Spot, Forward, and Futures Markets
Currency Spot Rates
Forward Rate Contracts
Foreign Currency Futures
Chapter 3 Review Questions
Chapter 4: Currency Options
Traded Currency Options
Call versus Put Call Options
Determinants of Option Prices
Who Benefits From Currency Options?
Chapter 4 Review Questions
Chapter 5: Determining Floating Exchange Rates
Interaction of Trade and Credit
Balance Of Payments
Chapter 5 Review Questions
Chapter 6: Government Intervention in Currency Markets
Legal, Black Market, and Offshore Rates
Chapter 6 Review Questions
Chapter 7: Determining Forward Exchange Rates
Exchange Rate Speculation
Effect of Speculation on Forward Rates
Forward Rates as Unbiased Predictors of Future Spot Rates
Interest Rate Arbitrage
Interest Rate Parity
Chapter 7 Review Questions
Chapter 8: Inflation Rates and Currency Values
Exchange Rates, Inflation Rates, and Foreign Competition
Law of One Price and Purchasing Power Parity
Chapter 8 Review Questions
Chapter 9: International Capital Market Equilibrium
International Fisher Effect
The International Parity Conditions and the Global Fisher Effect
Chapter 9 Review Questions
Chapter 10: Forecasting and the Efficiency of International Markets
Why Forecast Exchange Rates?
Forecasts Implied by the Parity Conditions
Forecasting under a Managed or Fixed Exchange Rate System
A Framework for Evaluating Forecasts
Chapter 10 Review Questions
Chapter 11: Managing Foreign Transaction Exposure
Types of Foreign Exchange Exposure
Ways to Neutralize Foreign Exchange Risk (Currency Risk)
Nature of Transaction Exposure
Managing Short-Term Transaction Exposure
Managing Long-Term Transaction Exposure
Chapter 11 Review Questions
Chapter 12: Managing Translation Exposure
Nature of Translation Exposure
Translation of Foreign Currency Financial Statements
Hedging Translation Exposure
Chapter 12 Review Questions
Chapter 13: Managing Operating Exposure
Understanding Operating Exposure
Operating Versus Transaction and Translation Exposure
Methods of Reducing Operating Exposure
Chapter 13 Review Questions
Chapter 14: Exports and Imports Financing
International Credit Risk
The Letter of Credit System
Alternatives to the Letter of Credit
Government Guarantees and Insurance
Chapter 14 Review Questions
Chapter 15: Working Capital Management
Receivables and Payables
Chapter 15 Review Questions
Chapter 16: Financing Globally
Long-Term Debt Financing
International Sources of Financing
Chapter 16 Review Questions
Chapter 17: Managing Political Risk
Nature and Consequences of Political Risk
Measuring Political Risk
Managing Political Risk
Methods for Dealing with Political Risk
Chapter 17 Review Questions
Chapter 18: Foreign direct Investment
The Theory of Comparative Advantage
Motives for Direct Foreign Investment
Methods of Direct Foreign Investment
International Capital Budgeting
Chapter 18 Review Questions
Chapter 19: International Banking
Eurobanks and the Eurocurrency Markets
Multinational Banking Organizations
Central Bank Activities
European Monetary Union
Chapter 19 Review Questions
Chapter 20: International Investing and Diversification
Advantages of International Investing
Risks in Investing Globally
The Ways to Invest Globally
Buying Foreign Bonds
Investing in International Money Markets
Buying Shares of U.S.-Based Multinational Corporations
Investing in International Mutual and Index Funds
Features of the Various Types of International Funds
How Do You Select Funds?
Sources of Information
Chapter 20 Review Questions
Appendix A: International Business Planning Checklist
Appendix B: Walgreens International Business Risks
Appendix C: General Electric Forms of Hedging
Appendix D: FedEx Quantitative and Qualitative Disclosure about Foreign Currency Risk