Guide to Multinational Financial Management for Controllers
Field of Study:
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.
After completing this section, you should be able to:
- Recognize some special features of a multinational corporation (MNC).
- Distinguish the factors that complicate financial decision making in an international environment.
- Define an exchange rate.
- Recognize the different conventions for exchange rate quotation.
- Compute the rate of exchange for a foreign.
- Identify the functions of foreign exchange markets.
- Recognize definitions for spot and forward exchange rates.
- Recognize how the bid/ask rates are used in the foreign exchanges.
- Recognize the nature of an option contract.
- Identify the purpose of hedging in the foreign currency market.
- Recognize factors in value determination of currency options.
- Identify different foreign currency contracts and their uses.
- Recognize how exchange rates occur in the international monetary system.
- Recognize how international markets influence of foreign exchange prices.
- Recognize the impact of economic policies on trade patterns and currency markets.
- Identify factors affecting the value of the US dollar.
- Identify the characteristics of the current international monetary system.
- Recognize some systems of international exchange rate regulations such as the Bretton Woods System and the European Monetary System.
- Identify characteristics of special international currency reserves such as special drawing rights.
- Recognize the causes of the Financial Crisis 2007-2010.
- Identify the influence of interest rates on a country’s currency.
- Recognize the implications of the interest rate parity (IRP) theory.
- Identify the influence of interest rates on forward and spot exchange rates.
- Recognize the concept of purchasing power parity.
- Identify the concept underlying the Law of One Price.
- Recognize the relationship between interest rates and future exchange rate changes.
- Identify the concept of the Fisher Effect and the relationship between real interest rates in different countries.
- Recognize the relationship between exchange rates, interest rate, and inflation rate as it relates to the financial market efficiency.
- Identify how the efficient market hypothesis is used to predict the foreign exchange rates.
- Recognize the nature of transaction exposure.
- Recognize how hedging techniques can decrease uncertainty.
- Identify strategies for eliminating some transaction exposure.
- Identify the contracts that can be used to hedge risk.
- Define translation exposure as it relates to foreign currency exposure.
- Recognize the functional currency of the firm.
- Identify different methods for translating financial statements.
- Recognize operating (economic) exposure as it relates to multinational, import-export, and purely domestic operations.
- Identify methods and objectives for a company to minimize operating exposure from changes in various exchange rates.
- Recognize strategies for controlling the degree of operating exposure to exchange rate changes.
- Recognize the main documents that are used in international trade.
- Identify the purpose of quasi-government institutions that help businesses control credit risk, such as the Foreign Credit Insurance Association.
- Identify organizational structures used by multinational companies to reduce their need for bank lending to support international cash flow.
- Recognize the principle behind practices such as multilateral netting.
- Recognize international business practices such as countertrade.
- Recognize the attributes of international leasing.
- Identify the special reasons for using Eurobonds rather than domestic bonds.
- Identify some basic techniques that can be used to measure the probability and quantify the magnitude of political risk.
- Recognize methods for reducing political risk prior to making foreign investments.
- Identify the factors that distinguish capital budgeting decisions regarding foreign investment.
- Recognize methods for evaluating proposed direct foreign investments.
- Recognize the most frequently used methods of analyzing international capital budgeting.
- Define a Eurodollar.Recognize different types of multinational banking organizations.
- Recognize the advantages and limitations of international investing and diversification.
- Compute the total return of an international investment.
- Identify instruments designed to facilitate international investment.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.