Skip to main content
  • Türkçe
  • English
Course Code: 
AFN 418
Course Type: 
Area Elective
P: 
3
Application: 
0
Credits: 
3
ECTS: 
6
Prerequisite Courses: 
Corporate Finance
Course Language: 
Türkçe
Course Objectives: 

To provide an insight to the challenges and opportunities that the management of a multinational enterprise faces in making the correct investment, financing and working capital decisions.

Course Content: 

International money and equity markets and how they function; interest rate and currency swaps; the fundamentals of international portfolio investment; Foreign direct investment and cross-border acquisitions; International capital structure and cost of capital; International capital budgeting; Multinational cash management; International taxation and transfer pricing.

Course Methodology: 
1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study
Course Evaluation Methods: 
A: Testing B: Presentation, C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes

Program Learning Outcomes

Teaching Methods

Assessment Methods

1. To be able to explain how international capital markets work and how a multinational entity (MNE) can raise financing through them.

1, 2, 5, 6, 7, 10

1,2,3

A,C

2. To be able to describe how an MNE can use interest rate and currency swaps to manage its overall risk.

1, 2, 5, 6, 7

1,2,3

A,C

3. To be able to analyze the challenges and opportunities that foreign investment presents. 

1, 2, 5, 6, 7, 8

1,2,3

A,C

4. To be able to calculate the cost of capital for an MNE and discuss how its capital structure is different.

1, 5, 6, 7, 8

1,2,3

A,C

5. To be able to conduct valuation analyses for international capital budgeting projects.

1, 5, 6, 10

1,2,3

A,C

6. To be able to differentiate between different approaches to cash management for an MNE.

1, 2, 5, 6

1,2,3

A,C

7. To be able to describe the importance of taxes on international financial decisions and how transfer pricing works.

1, 5, 6, 8, 10

1,2,3

A,C
 
 

Course Flow

Week

Topics

Study Materials

1

Globalization and the Multinational Enterprise

Textbook Ch. 1

2

International Bond Markets

Textbook Ch. 13

3

International Equity Markets

Textbook Ch. 14

4

Interest Rate Swaps

Textbook Ch. 8

5

Currency Swaps

Online resources

6

International Portfolio Management

Online resources

7

Midterm

  

8

Foreign Direct Investment and Cross-Border Acquisitions

Textbook Ch. 17

9

International Capital Structure

Online resources

10

International Cost of Capital

Textbook Ch. 13

11

International Capital Budgeting

Textbook Ch. 18

12

International Capital Budgeting

Textbook Ch. 18

13

Multinational Cash Management

Online resources

14

International Tax Environment and Transfer Pricing

Textbook Ch. 15

15

Final

  
 
 

Recommended Sources

Textbook

Eitemann, Stonehill, and Moffett  (2016). Multinational Business Finance, Global Edition, 14th Edition, Pearson.

Additional Resources

Course Moodle page, Online resources, Articles, Class notes
 
 

Material Sharing

Documents

Textbook, class notes, articles

Assignments

Homework assignments, case studies

Exams

Midterm and Final
 

Assessment

IN-TERM STUDIES

NUMBER

PERCENTAGE

Mid-terms

 1

50

Quizzes

 

 

Assignment

 4

50 

Total

 

100

CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE

 

 40

CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE

 

 60

Total

 

100
 

 

COURSE CATEGORY

Expertise/Field Courses
 
 

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM

No

Program Learning Outcomes

Contribution

1

2

3

4

5

  

1

To understand the core principles of finance and to be able to apply them both nationally and internationally.

 

 

 

 

X

 

2

To effectively use contemporary information technologies and up-to-date financial instruments.

 

 

X

 

 

 

3

To understand the ethics rules and the social responsibility mentality adopted by professional finance organizations and apply them in the decision-making process.

 

X

 

 

 

 

4

To have the necessary background to be able to work in multicultural and multilingual environments.

 

 

 

 

X

 

5

To be informed about markets and the factors affecting them, and to be able to analyze the developments in these markets.

 

 

 

 

X

 

6

To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.

 

 

 

 

X

 

7

To understand the structure of the global economic system and to be able to analyze how new developments will affect this structure.

 

X

 

 

 

 

8

To be able to use critical thinking ability in decision making process.

 

 

 

X

 

 

9

To be able to transfer the leadership, teamwork and communication skills acquired to the lifelong learning process.

 

 

X

 

 

 

10

To be able to predict the opportunities and problems that may arise under dynamic working conditions and manage these using analytical and creative approaches.

 

 

 

X

 

 
 

ECTS

Activities

Quantity

Duration (Hour)

Total Workload (Hour)

Course Duration (Including the exam week: 16x Total course hours)

15

3

45

Hours for off-the-classroom study (Pre-study, practice)

15

3

45

Mid-terms

1

20

20

Homework

4

5

20

Final examination

1

25

25

Total Work Load

 

 

155

Total Work Load / 25 (h)

    

6,20

ECTS Credit of the Course

 

 

6
 
 
None

Copyright © 2021. Yeditepe University.