Base Knowledge
Financial calculation and accounting
Teaching Methodologies
The curricular unit is based on interactive methodologies that aim to integrate the theoretical-practical dimensions of the approaches studied, promoting active participation, debate and critical and individual reflection on real cases presented in class.
Learning Results
The main objective of this curricular unit is to provide students with knowledge of International Finance by interpreting international economic and financial phenomena that affect the activity of companies, specifically:
a) Analysis and use of international parity conditions.
b) Use of financial instruments for managing exchange rate risk.
c) Analysis and assessment of companies’ economic exposure.
d) Analyse and assess companies’ accounting exposure.
e) Analysis and assessment of foreign investment decisions.
f) Analyse and assess financing decisions in foreign currency.
g) Determining the value of some real options in international investment decisions.
Program
1. International Monetary System
1.1. Introduction to the exchange rate market
1.2. Balance of payments
1.3. International parity conditions
2. Exchange rate risk management
2.1. Types of exposure: Transaction, economic and accounting.
2.2. Hedging mechanisms: Money market, forwards, futures, options and swaps
3. Foreign direct investment
3.1. Determinants and theories.
3.2. Political risk
3.3. Valuation
3.4. NPV, NPV and cost of capital.
3.5. Taxation
3.6. Coordination and control
3.7. Real options
4. External financing
4.1. Financing in international markets
4.2. Financing of MNEs
4.3. Financing of imports and exports
Curricular Unit Teachers
Beatriz Rosa Lopes CancelaInternship(s)
NAO
Bibliography
a) Main Bibliography
Eiteman, D.K., Moffett, M.H. and Stonehill, A.I. (2016). Multinational Business Finance, 14th edition. Pearson.
Krugman, Paul R., Obstfeld, Maurice, Melitz, Marc J. (2022), International Finance: Theory And Policy (Global Edition). Pearson Education Limited.
Silva, Eduardo Sá, Pereira, Adalmiro, Queirós, Mota, Carlos (2016). International Finance and Risk Management. Economic Life.
Pacheco, Luís, Tavares, Fernando, Salazar, Vasco, Vieira, Elisabete, Peguinho, Cristina (2017). International Finance -Theory and Practice, Sílabo Editions.
b) Complementary bibliography
Levi, M.D. (2009). International Finance. Taylor & Francis.