International Financial Management

Intensive - 5 Days

Course Overview

The economic world, post autumn 2008, has radically changed. Many people were naïve in terms of what was going on around them and even those supposedly “in the know” were making elementary mistakes, and were taking far greater risks than would normally be the case. If you want a much sounder understanding of International Finance then this course provides the key building blocks upon which to build that knowledge.

For those with little or no formal training in finance, this highly interactive two-day programme concentrates on the principles, tools and techniques of international financial management. Supported by analysis, practical exercises, and case studies this course will give you the understanding and ability to discuss and present the key aspects of international finance. You will also have a much better understanding of the impact your decision have upon your business.

Who Will Benefit From The Course?

Managers wanting to gain:

• A clearer understanding of how international trade operates and the financial aspects that underpin it.
• A better understanding of international exchange rates

With The Help Of This Course Delegates Will Be Able To:

• Appreciate the basic principles and terminology of international finance
• Recognise the different aspects of the international financial environment
• Identify the different types of international business methods
• Identify the factors that impact upon international trade flow
• Appreciate the importance of exchange rates in the international business arena
• Recognise the risks in the financial futures market
• Appreciate of the non-risk benefit of international arbitrage
• Demonstrate the different techniques for managing exchange rate risk
• Recognise the different methods for analysing a capital investment
• Appreciate the need to manage cash at a micro level
• Know what to do with excessive cash to gain the best yield

Key areas to be covered in the programme and the accompanying documentation

DAY 1

International Financial Management – The Environment

• International trade – an overview
• The goals of a multi national company ( MNC )
• International business methods
• International opportunities
• Balance of payments
• International financial markets
• Factors affecting international trade flows
• Exchange rate equilibrium
• Factors that influence exchange rates
• Currency futures market

DAY 2

Exchange Rate Behaviour

• Exchange rate systems
• Government influence on exchange rates
• Risk and uncertainty decision rules
• The analytical tools to manage risk
• Exchange rate risk exposure
• International arbitrage and interest rate parity (IRP)
• Purchasing Power Parity ( PPP )
• International Fisher Effect (IFE)
• Comparing IRP, PPP and IFE

DAY 3

Managing Exchange Rate Risk

• Forecasting techniques
• Exchange rate volatility
• Types of exposure
• Managing transaction exposure
• Methods of eliminating transaction exposure
• Limitations of hedging
• Alternative hedging techniques
• Economic exposure

DAY 4

Managing long term assets and liabilities

• Motives for foreign direct investment (FDI)
• International capital budgeting
• Restructuring a MNC
• Country risk analysis
• Cost of Capital
• Capital asset pricing model (CAPM)
• Accounting rate of return (ARR) and payback
• Net present value (NPV) versus internal rate of return (IRR)
• How do you choose which method to use?
• Equivalent annual cost (EAC) method
• Capital budgeting methods

DAY 5

Managing short term asset and liabilities

• Payment methods of international trade
• Cash flow, working capital and the operating cycle
• Managing working capital
• Inventory management
• Management of receivables
• Management of payables
• The operating cycle
• Methods of payment
• International payments
• Cash improvement
• Cash planning
• Cash management
• Investing excess cash

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