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INTERNATIONAL FINANCE
INTRODUCTION
INTRODUCTION
Materials
How to evaluate
Content
How to study
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MATERIALS
Textbooks
International Financial Management - Roland Fox, Jeff Madura -
Cengage Learning (2023)
Reference books
[1] Jeff Madura (2017), International financial management 13th,
Cengage Learning.
[2] Jeff Madura (2017), International Corporate Finance 10th,
Cengage Learning, Compiled by Faculty of Economics Vietnam
National University
HOW TO EVALUATE
Progress Evaluation: (50%) Final exam (50%)
- Attendance (10%) - Essay + Multiple choice
- Discuss, teamwork & - Allow to use of
answer questions (20%) documents
- Presentation (30%) - Exam time: 60 minutes
- Mid-term exam (40%)
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INTERNATIONAL FINANCE
- Provide a theoretical framework for - Explains & clarifies the
analyzing financial decision in MNCs
relationship between exchange rate
within the context of globalization
and interest rate, inflation rate by
international parity theories
- Equips students with foundation
knowledge of: Global financial - Analyzes factors affecting
market; Capital flows between exchange rate, the global monetary
countries; currency derivatives system, and the government
market… exchange rate policy options.
COURSE OBJECTIVES
• Describe the international monetary system; foreign exchange markets and explain
the goals of MNC, along with the motives & risks of international business.
• Describe the Balance of Payments (BOP) and determine its implications
for international competition.
• Convert exchange rate using spot rate, forward rate and apply knowledge of
derivatives to risk management in international financial markets.
• Explain exchange rate fluctuation based on the parity conditions that should apply
between spot rates, forward rates, inflation rates, interest rates and identify arbitrage
opportunities.
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COURSE OBJECTIVES
• Explains how governments can influence exchange rate movements and how such
movements can affect economic conditions.
• Explain common motives for initiating investment of MNC and the benefits of
international diversification.
• Identify the key factors affecting MNC’s capital structure and explain the difference
on the cost of capital among countries.
• Analyze MNC’s capital budgeting for special situations such as exchange rate
fluctuates… to determine whether an international project should be implemented.
CONTENT
• Chapter 1: Multinational Financial Management: An overview
• Chapter 2: International financial markets and portfolio investment
• Chapter 3: International trade and investment: measurement and theories
• Chapter 4: Exchange rate changes
• Chapter 5: Exchange rate history and the role of Governments
• Chapter 6: Internation arbitrage and covered interest rate parity
• Chapter 7: Relationship between inflation, interest rates and exchange rates
• Chapter 8: Market insurance: Currency Derivatives