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University of Exeter Business School

International Financial Management

Module titleInternational Financial Management
Module codeBEAM042
Academic year2023/4
Module staff

Dr Jason CEN (Convenor)

Duration: Term123
Duration: Weeks


Number students taking module (anticipated)


Module description


International Financial Management provides you with a conceptual framework within which the key financial decisions of the multinational firm can be analysed. The module focuses on decision making in an international context, building on, and extending, the valuation framework provided by domestic corporate finance to account for dimensions that are unique to international finance.

Additional Information:

This module offers an intuitive and real world grasp of the concepts and issues in international finance. A wealth of examples is provided to enable students to see the application of the subject to business, mostly from a multinational corporation’s perspective.

External Engagement
We have external guest speakers in this module to deliver topics on current issues that are closely linked with the theoretical content covered in the course.


This module equips students with the advanced knowledge to be able to understand and evaluate a multinational corporation’s performance, financing and investment activities, and its risks and opportunities, in a global context.

Links to the academic literature are provided by a selection of articles from academic journals at the end of each lecture, which ensures that students are able to reflect on and evaluate issues and problems in the subject at a high academic level.

Students will also develop team-working and presentation skills through seminar discussion on weekly practice questions.


The sustainable operation of financial markets relies on the fact that security prices reflect the fair value of the future cash flows that they promise to pay. This module addresses the issue of the fair value of financial securities in an international setting.

Module aims - intentions of the module

The aim of this module is to introduce students to the subject of international financial management. In particular, it provides students with an overview of the financial environment in which the multinational firm and its managers function, including financial institutions, financial markets and exchange rate systems. It provides students with a critical understanding of the principles of currency risk management, multinational financing and international portfolio investment.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. describe the environment in which international financial management is undertaken;
  • 2. explain the different types of foreign exchange risk that a multinational firm faces and the principles of foreign exchange risk management;
  • 3. explain and discuss the structure and the benefits and costs of international bond and equity markets for multinational firms
  • 4. explain and discuss issues concerning the currency risk management of multinational firms;
  • 5. explain and discuss the main features of international portfolio investment.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

  • 6. develop theoretical arguments based on analytical reasoning;
  • 7. rigorously analyse problems in finance;
  • 8. interpret financial data and problems in the light of established theories;
  • 9. access a wide body of empirical research literature and critically appraise it.

ILO: Personal and key skills

On successfully completing the module you will be able to...

  • 10. plan and manage their own study both individually and within a group;
  • 11. make appropriate use of learning resources, including sophisticated computer datasets;
  • 12. critically analyse problems arising in both academic and practical contexts;
  • 13. effectively present the results of individual and collaborative projects as developed through the mode of instruction using both individual and group formative assignments.

Syllabus plan

  • Introduction to the International Financial Environment
  • Background of International Financial Markets
  • Exchange Rate Determinants and Behaviour
  • Currency Derivatives and Hedging
  • Foreign Exchange Risk Measurement
  • International Bond Market
  • International Equity markets
  • International Portfolio Investment
  • Current Issues in International Financial Management (given by guest speakers)

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity20Lectures
Scheduled Learning and Teaching Activity11Tutorials
Guided Independent Study118Reading, preparation for classes and assessments

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Problem sets20 minutes9, 10Correct answers
Mid-term mock test45 minutes1-6, 9-13Oral and written model solutions

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
One In-class multiple choice and/or numerical problem-based Class Test2045 minutes1-10Solutions distributed on ELE, discussion in tutorials/lecture sessions
Individual Written Exam801 hour and 15 minutes1-8, 10-12Extensive solutions available on ELE after the exam

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
In class test (20%)In class test (20%) (45 minutes)1-10August/September Reassessment Period
Written exam (80%)Written examination (80%) (1 hour 15 minutes)1-8,10-12August/September Reassessment Period

Indicative learning resources - Basic reading

Basic reading:

The following text books will be used in the course. However given the nature of the topics additional readings will be indicated wherever required.


Main Textbook:

Eun, C.S., & Resnick, B.G. (2018). International financial management (8th global ed.). New York: McGraw-Hill Education.


Other Textbooks:

Bekaert, G.J., & Hodrick, R.J. (2018). International financial management (3rd ed.). Cambridge: Cambridge University Press.

Indicative learning resources - Web based and electronic resources

A list of references and web resources will be made available on the ELE.

Indicative learning resources - Other resources

Lecture handouts will be based on related material from these texts and other references. Students are required to refer to original Chapters in the texts assigned in the readings for each week. Copies of the main text books are available in the library. The core material relevant to the course can be found in relevant chapters of alternate textbooks, however with at differing levels of difficulty. Some topics require reading of published papers and articles. Full details of references for each topic will be distributed at the start of the course.

Key words search

MNC, financial management, international financial management 

Credit value15
Module ECTS


Module pre-requisites


Module co-requisites

BEAM047 or BEAM072

NQF level (module)


Available as distance learning?


Origin date


Last revision date