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MN20600: Managing finance in a multinational company

[Page last updated: 23 October 2023]

Academic Year: 2023/24
Owning Department/School: School of Management
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Intermediate (FHEQ level 5)
Period:
Semester 1
Assessment Summary: CW 100%
Assessment Detail:
  • Coursework (CW 100% - Qualifying Mark: 35)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites: Before taking this module you must take MN10571
In taking this module you cannot take ES20070 OR take MN20026 OR take MN20502
Learning Outcomes: At the end of this unit students will be able to:
* describe foreign direct investment (FDI) and explain the advantages/disadvantages of FDI for countries and companies;
* describe the international flow of goods, services and cash and evaluate the additional risks that companies face in operating internationally;
* describe the operation of the foreign exchange market, identify the factors that affect exchange rates and explain how those factors interact;
* analyse a company's exposure to exchange rate risk
* explain alternative hedging strategies;
* identify an appropriate discount rate with which to appraise international projects;
* carry out multinational capital investment appraisal with cash flows in more than one currency;
* identify additional sources of finance available to an international company and assess the costs and benefits;
* include considerations of international tax in financial decision making.


Aims: This unit builds upon Introduction to Finance. It further develops students' knowledge and understanding of the principal tools used in financial decision making, focusing on international cash flows. It introduces students to the key principles of international diversification and efficient markets; international capital investment appraisal and international risk management.

Skills: Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making.

Content:
* foreign direct investment (FDI) and the advantages/disadvantages of FDI for countries and companies;
* the international flow of goods, services and cash and the additional risks that companies face in operating internationally;
* the operation of the foreign exchange market, the factors that affect exchange rates and the interaction of those factors;
* the foreign exchange market;
* risk and appropriate hedging strategies
* risk and return and the cost of capital
* multinational capital investment appraisal with cash flows in more than one currency;
* additional sources of finance available to an international company and the costs and benefits;
* international tax in financial decision making.

Course availability:

MN20600 is Compulsory on the following courses:

School of Management
  • UMMN-AYB06 : BSc(Hons) International Management with Year Abroad (Year 2)
  • UMMN-AFB04 : BSc(Hons) Management (Year 2)
  • UMMN-AKB04 : BSc(Hons) Management with Year long work placement (Year 2)

MN20600 is Optional on the following courses:

School of Management
  • UMMN-AKB05 : BSc(Hons) Management with Marketing with Year long work placement (Year 2)

Notes:

  • This unit catalogue is applicable for the 2023/24 academic year only. Students continuing their studies into 2024/25 and beyond should not assume that this unit will be available in future years in the format displayed here for 2023/24.
  • Courses and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
  • Find out more about these and other important University terms and conditions here.