Participants will delve into the complexities of exchange rate determination, foreign exchange exposure, and risk management strategies. Understanding interest rate parity, arbitrage theorems, and the intricacies of international cash management will be covered. 

After the successful completion of this course, you will understand the following;

Global Financial Environment

• Explain the Growing Importance of International Finance and its Significance in the Global Economy.
• Discuss the Concept of a Multinational Corporation and Its Role in International Finance.
• Analyse the Risks Involved in International Finance and the Strategies Used to Manage Them.
• Explore the Principles of Global Finance Including the Risk-return Trade-off, Market Imperfections, and the Portfolio Effect.
• Examine the Role of Global Financial Institutions Such as the IMF, World Bank, and International Finance Corporation (IFC) in the Global Financial System.

 

MANAGING FOREIGN EXCHANGE RISK AND EXPOSURE

• Understand the Concept of Exchange Rate Determination and Identify the Key Factors that Influence it in the Foreign Exchange Market.
• Compare and Contrast the Features and Characteristics of the Spotted Foreign Exchange Market and the Forward Foreign Exchange Market.
• Evaluate the Advantages and Disadvantages of Floating Exchange Rates as a System for Determining Currency Values in the Global Economy.
• Explain the Concept of Fixed Exchange Rates Including the Mechanisms and Policies Used to Maintain them by Central Banks and Governments.
• Differentiate between Controlled Exchange Rates and Freely Floating Exchange Rates and Analyse the Impact of Government Intervention on Currency Values and Economic Stability.
• Explore the Concept of Foreign Exchange Exposure and Risk and Assess the Potential Implications and Challenges it Poses for Businesses Operating in International Markets.

 

Arbitrage and Purchasing Power ParityArbitrage and Purchasing and Power Parity

• Understand the Concept of Interest Rate Parity and its Implications for Financial Markets.
• Explain the Interest Rate Arbitrage Theorem and How it is Used to Exploit Interest Rate Differentials in International Markets.
• Analyse Uncovered Interest Rate Arbitrage and the Carry Trade as Investment and Borrowing Strategies in Response to Interest Rate Differentials.
• Explore the Covered Interest-parity Condition and its Significance in Determining the Relationship Between Interest Rates and Exchange Rates.
• Discuss Purchasing Power Parity (PPP) and its Various Forms Including Absolute and Relative PPP As Well As the Practical Importance of PPP in Understanding Exchange Rate Dynamics.

 

International Investment and Financing

• Understand the Objectives of Cash Management and its Importance in Effectively Managing an Organisation's Cash Flows.
• Explore the Motives Behind Holding Cash and How it Impacts Liquidity Management in Both Domestic and International Contexts.
• Analyse the Complexities Involved in International Cash Management Including Factors Such as Currency Risk, Cross-border Transactions and Regulatory Requirements.
• Assess the Risks Associated with International Cash Management and Identify Strategies to Mitigate these Risks Such as Hedging, Diversification and Cash Flow Forecasting.
• Examine the Concept of Portfolio Investment and its Distinction from Foreign Direct Investment, Highlighting the Benefits and Risks of Engaging in Foreign Portfolio Investment.
• Evaluate the Benefits and Challenges of Sourcing Equity Globally and Design Strategies for Raising Equity in Foreign Markets Including the Use of American Depository Receipts (ADRS) and Depositary Receipts.

International Trade Financing

• Explain the Concept of International Trade Financing and its Significance in Facilitating Global Commerce.
• Describe Various Trade Financing Instruments Used in International Trade Transactions.
• Analyse the Process of Issuing and Utilising a Letter of Credit for International Trade Financing.
• Compare and Contrast Different Types of Letters of Credit and their Specific Characteristics.
• Differentiate Between Bank Guarantee and Letter of Credit as Forms of Trade Financing and their Respective Applications.
• Explore the Concept of Factoring and its Role in International Trade Financing Including Benefits and Considerations for Businesses.

 

 

All MSBM courses are accredited by the relevant partners and awarding bodies. Please refer to MSBM accreditation in about us for more details.

There are no strict entry requirements for this course. Work experience will be added advantage to understanding the content of the course.

The certificate is designed to enhance the learner's knowledge in the field. This certificate is for everyone eager to know more and get updated on current ideas in their respective field. We recommend this certificate for the following audience.

• International Finance Analyst
• Foreign Exchange Risk Manager
• Portfolio Investment Strategist
• Cash Management Specialist
• Trade Finance Consultant
• Global Equity Sourcing Manager
• Financial Risk Analyst
• International Treasury Manager