Topics: This course covers important principles in macroeconomics and international trade. We will discuss topics such as the effects of adverse shocks (e.g. different recent crisis situations) on economies, how fiscal and monetary policy work and how such policies can be used in times of crisis. We will analyze the impact of trade on economies, openness to trade versus protectionism and the implications of different trade instruments.

DateThe class is structured according to the “flipped classroom concept”. This means that the theory parts are available on moodle. You will work in the form of study groups on this material. Regarding the applied part, you can chose out of two groups offered:

  • Tuesday group (classroom W1.01): 11:30-13:00 
  • Friday group (online via zoom): 11:30-13:00

Assessment and contribution to module mark: written exam

Credits: 4 SWS / 5 CPs

Lecturer: Prof. Dr. Maria Lehner


The course introduction for HRMO will take place on Tuesday, October 8, 2024 (2 p.m. - 5:10 p.m.) in room W1.06.

Inhalte: Die Studierenden lernen die wesentlichen Instrumente der entscheidungsorientierten Kostenrechnung mit ihren Teilsystemen:

- Kostenartenrechnung und Kostenverläufe/-funktionen
- Kostenstellenrechnung
- Kostenträgerrechnung
- Kurzfristige Erfolgsrechnung

kennen.

Zeit/Ort: Der Kurs findet mittwochs von 11:40 Uhr bis 13:10 Uhr statt. Die zugehörigen Übungen sind im Anschluss um 14:00 Uhr (jeweils im Raum W2.14).

Die 1. Vorlesung startet am 16.10.2024. Die ersten Übungen starten voraussichtlich Anfang November (wird in der Vorlesung bekannt gegeben).

Leistungsnachweis: Klausur (90 min), 4 SWS, 5 Credits


COURSE SUMMARY



The course "MULTINATIONAL BUSINESS FINANCE & INVESTMENT (MBF&I)" is tailored around the pertinent financial and strategic questions of multinational enterprises. 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 the impacts of the Global Financial Crises 2007/8, rising nationalism (Brexit, US first, Chinese retaliation,...), the covid-19 pandemic of 2020+, and 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

online

The lectures on MBF&I will be on-campus. We also will apply a flipped class-room designLectures will be regularly Tuesday from 8:00-11:20, Room WX.XX. The first lecture will be on October 8.

As core readings we will use: 

  • Eiteman, D.K.; Stonehill, A.I.; Moffett, M.H. (2024). Multinational Business Finance. 16th 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 through the global capital market jungle...