Description: The field of International Finance evolves almost on a daily basis. The multinational enterprise needs to react “real time” to a dynamic environment that will contribute to the success or failure of the enterprise. The multinational firm needs to distinguish itself from that of simply a domestic focused enterprise and needs to be a catalyst and a facilitator of international trade as it serves as an important producer and distributor in host countries where its subsidiaries are located. The success of a multinational enterprise depends on its ability to recognize and benefit from imperfections in national markets for products, factors of production and financial assets.
Even purely domestic firms often have significant international activities. These include the import and export of products, components, and services. Domestic firms also have exposure to foreign competition in their domestic market and indirect exposure to international risks through their relationships with customers and suppliers. Although both domestic and multinational firms are exposed to foreign exchange risks, only multinational firms face certain unique risks that are not normally a threat to domestic operations, such as political risks.
All of these topics and additional topics will be covered in this class. But more importantly, the class will include case studies and my personal experiences from throughout my career as the topics become realty in a current event application. We will review current event topics from the Wall Street Journal and other periodicals as well. These topics will be relevant to whatever career path you choose to pursue. In addition, I will review certain applications of international finance that impact world social issues...in particular, through my association with “One Laptop per Child” here at MIT.
Course #: 15.S10
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