06300793 - Financing International Operations

The course focuses on international finance & risk management.
Case studies will be widely used 

Estimation of private study (outside of contact hours): 20 hours

TARGETED KNOWLEDGE AND SKILLS

Focus on risk management: forex risks (foreign exchange), interest rate risks, country risk management, investment risks…
Understand decision-making in an international context (case studies)

COURSE OUTLINE

Country Risk Analysis 
Multinational Capital Budgeting
Capital Cost, Risk Premium, Operating Cash Flows
• Exercises
• Case study: Lufthansa in India

Foreign Exchange Risk: Transaction / Operating Exposure
Currency Forwards, Currency Options, Swaps
• Exercises
• Case study: Netflix / Guangzhou, China
• Case Study: Airbus Forex / Brazil

Money Markets & Interest Rate Risk Management 
Interest Rate Risk Management
• Exercises
• Case study:  Pakistan International Airways

PRESCRIBED TEXTS AND PUBLICATIONS :

David Eiteman, Arthur Stonehill, Michael Moffett, Fundamentals of Multinational Finance, 4 Ed., Pearson (2011)
ISBN10: 0132829916 (reference book)

Alan C. Shapiro, Peter Moles, International Financial Management, Wiley, New York (2014) 
(Chapters 16 & 17)

RECOMMENDED TEXTS AND PUBLICATIONS :

Pierre Vernimmen, Yann Le Fur, Pascal Quiry, Corporate Finance (5th edition), Wiley (2017) 
Section I Financial analysis / Part 1 & 2 
Section II investors and markets / Part 1 investment decision rules

TEXTS AND PUBLICATIONS OF IAE LYON FACULTY ON THE SUBJECT OF THE COURSE :  

• Griette, E., Vittoz, L., Langle, B., “Cérémako: coping with weather and financial markets volatility “, Revue Recherche et Cas en Sciences de Gestion , Les paradoxes de la mondialisation (n°16), second semester 2016 
• Pesqueux, Y., Griette, E., « La question de l’impact à l’épreuve de la gouvernance minière autour de son instauration en Afrique de l’Ouest », Question de management, June 2020 (n° 27) 

Individual grade
Final Exam, 2h

Other grade(s)
Group assignements: case study & participation to the class

Weight : 70% / 30%

TEACHING METHODS
NATURE OF MATERIALS
Lectures, exercises & case-studies.

PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS

ADVISED PRIOR READING :
Pierre Vernimmen, Yann Le Fur, Pascal Quiry, Corporate Finance (5th edition), Wiley (2017)