When earning an advanced degree like an MBA in Finance at Texas A&M University Corpus Christi, many opportunities are available for further study and specialization. One such course in the university’s online program is in multinational finance. Parts of the MBA program touch upon the basics of global finance, but only specific study in multinational finance will provide a more complete look at issues such as exchange rate risk, financing international trade, foreign investment and the country’s risk analysis.
One of the primary finance concentration courses, multinational finance, presents the study of corporate financial planning and decision-making in a multinational environment. This course furthers a student’s understanding of the capital markets, investment management and financial institutions as they relate to the intersections of different nations in a global context.
Measuring and Managing Exchange Rate Risk
As stated in an IMF-issued 2006 paper titled Exchange Rate Risk Measurement and Management: Issues and Approaches for Firms, “measuring and managing exchange rate risk exposure is important for reducing a firm’s vulnerabilities from major exchange rate movements, which could adversely affect profit margins and the value of assets.”
Named Brexit, the United Kingdom’s departure from the European Union has focused the attention of the business world on the international arena. The general public is interested in understanding Brexit’s implications on individual lives. At the corporate level, there is even more at stake.
Corporate recruiters seek MBAs in Finance who are thoroughly prepared to address the risk-related concerns of organizations and can recommend the proper course of action pertaining to credit risk, exchange rate risk and international diversification. Core studies in multinational finance focus on foreign investments and international trade. With Brexit underway, qualified professionals will have opportunities to assist companies with the transition as treaties are re-drawn, tax exposure evaluated, and exchange rate risk managed in fluctuating currency markets.
Industrialized and developing countries alike benefit from financial knowledge and research that keep pace with pertinent events in today’s rapidly changing world. Planned events (the Olympic Games in Rio de Janeiro, Brazil), natural events (tsunamis in the Pacific) and terrorist-led attacks all affect the global economy and require rapid action by the corporations they affect.
The effect of Brexit, Asian markets, and global interest rate volatility on financial and corporate institutions touches all businesses and individuals in both readily apparent and not-so-obvious ways. Learning to price assets correctly in different markets, apply corporate valuation methodology, and navigate the ins and outs of international diversification are skills that enhance a business executive’s value in the corporate world.
Learn more about the TAMU-CC online MBA in Finance program.