Aufbauphase - IM - 3./4. Semester

COURSE SUMMARY

The course "MULTINATIONAL BUSINESS FINANCE & INVESTMENT (MBF&I)" is tailored around the pertinent financial and strategic questions of multinational enterprises (MNEs). Besides, we will discuss issues, concepts and theories of global equity, debt and currency markets. 

The MNE is an unique institution within the global capital markets. The latter act as a catalyst and facilitator of international trade and finance. Nevertheless, a fair question might be if we are right now at a tipping point from GLOBALIZATION to SLOWBALIZATION driven by (1) the impacts of the Global Financial Crises 2007/8, (2) rising nationalism (Brexit, US first, Chinese retaliation,...), (3) the covid-19 pandemic of 2020+, and (4) the unprovoked war of Russia against the Ukraine. Do we have to rewrite international finance textbooks and corporate strategies? 

The black-swan effect of the covid-19 pandemic with its implicit volatility in exchange rates, commodity prices and interest rates is a show-case of the importance of a resilient corporate finance strategy and the management of global capital market risks. A proper understanding of interest rate, currency and commodity price risk management is therefore of paramount interest.

COURSE METHODOLOGY

The lectures will be structured around the following topics

• Global capital markets (equity, debt, currency markets)
• Foreign exchange (FX) rates, interest rates and pricing theories
• FX, interest rate and commodity price exposure 
• Hedging techniques on FX and debt markets
• Global corporate finance
• Global investment strategies
• Valuing securities (stocks and bonds)

The MBF&I course will be taught from an academic, but as well from an applied (management) perspective. Therefore, the lectures will be accompanied by multiple deep-dives and case studies. ECONOMIST and FINANCIAL TIMES are mandatory (!) reading requirements besides the text books and articles for the MBF&I lectures.

COURSE LOGISTICS & TIMING

The winter term lectures 2023/24 on MBF&I will be on-campus. We also will apply a flipped class-room design. Lectures will be 

regularly Tuesday from 8:00-11:20, Room W2.10. The first lecture will be on October 10.

Additional Note: As our class-room will be technically upgraded from Oct. 16 through Oct. 26 2023, our lectures 2 and 3 will be online / on Zoom. Dial in data will be available in each lecture folder on Moodle. 

As core readings we will use: 

• Eiteman, D.K.; Stonehill, A.I.; Moffett, M.H. (2024). Multinational Business Finance. 16^th edition.
  
• Brealey, R; Myers, S.; Allan, F. (2023): Principles of Corporate Finance – Global Edition; 14th ed..
• Feix, T. (2021). Valuing Digital Business Designs & Platforms - An Integrated Strategic and Financial Valuation Framework. Springer Science Global Book Series: The Future of Business & Finance.

COURSE REQUIREMENTS

As we will use a flipped-classroom approach you should invariably read the assigned chapters, articles, and supplementary materials before you come to class and go over the assigned exercises and cases in time. Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems, questions, and cases. You should participate actively in the lecture discussions. You are also expected  to spend some time to digest the material, to work on the assignments and case studies. After the end of each session you should review handouts, your notes, and highlights in your readings to prepare yourself for the exam. 

I would like to invite you to create together with YOU an inclusive classroom and intense learning environment where we will explore intellectual curiosity with respect, candor, courtesy, and courage! We will create a collaborative learning environment. 

Contradicting views and perspectives are highly welcomed, at least if they are grounded on a reasonable argumentation lines. Already in our first session we will confront the argumentation of the Harvard Business Review with a thought-provoking article of the Economist on the modern purpose of the firm.

Let's join the journey of the MNEs through the global capital market jungle...