International Financial Management

Module Title	International Financial Management
Module Code	25-6032-00L
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	6
Credit Points	20

Assessment Mode Weighting	Coursework	30%
	Examination	70%
	NOTE: The University is currently reviewing its assessment regulations for 2008/09 and the assessment package for this module may be subject to change.
Pre-requisites	None
Co-requisites	None

Class Contact Hours
Average Weekly	1.5

Directed Learning
Average Weekly	5

Module Leader	Anthony Head
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

The management of the finance function within business is of key importance and brings together in a financial context all the decisions made within the other functions of the business. The financial health of a business is critical to its survival and financial management considers the raising and efficient use of the financial resources entrusted to the business. In an international dimension, there is an increase in the fund raising and investment opportunities available to a business, but with this increase in opportunities comes an increase in complexity.

Summary of Aims

To give students an integrated understanding of the problems associated with the effective management of the finance function in an international organisation.

To develop knowledge, appreciation and understanding of the principles and issues relating to international financial management, and for students to be able to apply these principles in the context of problem solving and financial decision-making in the international business environment.

Anticipated Learning Outcomes

On completion of the module students should

be able to critically appraise and compare the theories determining the movement of exchange rates
have a clear understanding of the long and short-term financing sources available to multinational companies
have a clear comprehension of the significant factors that influence corporate decision-making in the areas of investment, risk management and capital structures within multinational companies
be able to propose solutions to financial problems arising from the financing and investment activities of international firms
be able to utilise financial information of both a quantitative and qualitative nature to solve a variety of international financial management problems.

Assessment and Feedback Strategy

The course is assessed by means of a three-hour unseen examination (70%) and a written assignment (30%.)

The assignment is intended to be both formative and summative and involves students applying the theory of international finance to real data retrieved from various databases. The formative aspect including undertaking the assignment itself (data collection, analysis and interpretation) and the feedback provided by the tutors when the assignments are returned.

The examination requires students to answer both essay and/or computational style questions and is summate in nature.

Module Assessment Criteria

Table 1: MODULE ASSESSMENT CRITERION - COURSEWORK

Mark:	Below 35/40%	40 - 49%	50 - 59%	60 - 69%	70% and above
Basic terminology and concepts	Little or no knowledge of basic terminology and concepts	Some knowledge of basic terminology and concepts	Good knowledge of terminology and concepts	Good knowledge of terminology and a wide range of concepts	Extensive knowledge of terminology and concepts and ability to apply it imaginatively
Sources of information	No use made of background reading, journals and CD-ROM materials No referencing	Some use made of background reading, journals and CD-ROM materials Partial referencing	Full use made of background reading, journals and CD-ROM materials Full referencing	Full use made of background reading, journals and CD-ROM materials plus other sources Full referencing	Full use made of background reading and a variety of other sources to add value to the assignment Full referencing
Written communication	Poorly written, hard to follow, many spelling and grammatical errors, no evidence of using "Essay Writing" skills pack	Able to follow points made, some spelling or grammatical errors	Reader-friendly and only a few spelling and grammatical errors	Very reader-friendly, no spelling and grammatical errors	Very reader-friendly, no spelling and grammatical errors, imaginative approach to communication
Numerical ability and calculations	Little or no numerical ability characterised by error ridden calculations with no accompanying explanation	Some numerical ability with significant errors in the calculations and little explanation	Solid numerical ability with calculations only containing minor errors and some explanation	Good numerical ability with very few, if any, minor errors and logical explanation	Excellent numerical ability with extensively explained calculations including alternative scenarios
Knowledge of the theory under consideration	Little or no knowledge of the theory under consideration	Some knowledge of the theory under consideration	Good knowledge of the theory under consideration	Good applied knowledge of the theory under consideration	Extensive applied knowledge of the theory under consideration
Conclusion relative to findings of assignment and the question posed	Little or few conclusions with no attempt to link them to question posed	Some conclusions but little attempt to tie them in with question posed	Sensible conclusions which relates back to question posed	Good conclusions with significant and sensible reconciliation with question posed	Extensive conclusions which relates to question asked and which raise further questions / issues

Table 2: MODULE ASSESSMENT CRITERION - WRITTEN EXAMINATION

Mark:	Below 35/40%	40 - 49%	50 - 59%	60 - 69%	70% and above
Use of basic terminology and concepts	Very poor use of basic terminology and concepts and learning support materials	Adequate use of basic terminology and concepts and learning support materials	Good use of basic terminology and concepts and learning support materials	Very good use of basic terminology and concepts and learning support materials	Excellent use of basic terminology and concepts and learning support materials
Written communication	Poorly written, hard to follow, many spelling and grammatical errors	Able to follow points made, some spelling and grammatical errors	Clearly written, with only a few spelling and grammatical errors	Well written and presented, with no spelling or grammatical errors	Well written and presented, with no spelling and grammatical errors and an imaginative approach to communication
Understanding of corporate finance theory	Little or no understanding of corporate finance theory	Some understanding of corporate finance theory	Good understanding of corporate finance theory	Good applied understanding of corporate finance theory including critical discussion	Extensive applied knowledge of corporate finance theory with extensive critical discussion
Knowledge of decision making techniques	Little or no knowledge of decision making techniques	Some knowledge of decision making techniques	Good knowledge of decision making techniques	Good applied knowledge of decision making techniques	Extensive applied knowledge of decision making techniques
Mathematical skills and application of techniques	No attempt to apply mathematical skills and techniques	Application of basic mathematical skills and techniques to financial data Some errors in calculation	Application of a variety of basic mathematical skills and techniques to financial data Few errors in calculation	Application of a variety of mathematical skills and techniques to financial data No errors in calculation	Imaginative application of a variety of mathematical skills and techniques to financial data No errors in calculation

Teaching and Learning Strategy and Methods

The central concepts and principles will be conveyed through the medium of formal lectures. A supporting seminar programme will be used to develop the material introduced in lectures, and in particular will be used to consider topical developments relating to the operations of multinational organisation and their environment. Use will be made, within the seminar programme, of case studies through which to illustrate and explore the issues identified within the lecture and reading programme. Where appropriate, it is hoped to make use of visiting speakers from such organisations.

Indicative Content

Exchange rate determination using purchasing power parity theory, interest rate parity theory and the international Fisher effect
Exchange rate risk management by internal and external hedging techniques
Means of settlement of international transactions and sources of short-term finance for multinational companies
International credit risk, economic risk and political risk management
Eurocurrency and eurobond markets as sources of finance
International investment appraisal and international business operations
Capital structure of international companies and their subsidiaries
Issues in remittance of cash between parent and subsidiaries

Indicative Reading ListEssential reading:

Madura, J. (1998) International Financial Management, 5th edition, West

Additional and background reading:

Buckley, A. (1990) The Essence of International Money, Prentice Hall

Buckley, A. (1996) Multinational Finance, 3rd edition, Prentice Hall

Copeland, L.S. (1994) Exchange Rates and International Finance, Addison-Wesley

Demirag, I. and Goddard, S. (1996) Financial Management for International Business, 5th edition, McGraw-Hill

Pike, R. and Neale, W. (1995) Corporate Finance and Investment, 2nd edition, Prentice Hall

Shapiro, A.C. (1992) Multinational Financial Management, 4th edition, Allyn and Bacon

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