In this session we shall have look at the most common methods by which firms conduct international business, and what this implies for the financial management of a multinational company. We shall also explore how international trade and investment influences the balance of payments of countries at the macro level.

Countries use different currencies, this means that companies need to conduct trade and investments using in different currencies. This need has resulted in the development of international foreign exchange, money, credit, bond and stock markets. In this session we are going to analyse the specificities of each of these markets.

Exchange rates are continuously changing. In this session it will be explained how exchange rates are measured, equilibrium is determined, and how currency derivatives are used to hedge on the basis of expected exchange rate movements.

The basics of general accounting are reviewed in this session. A link will also be established with the international management of long-term and short-term assets and liabilities.

First we shall have a look at what drives the development of accounting practices in different countries. Accounting objectives may also differ from country to country. The main challenge is to reconcile all these diverse sources and formats of accounting data. We shall see how this can be done and what processes this supposes.

An increasing convergence towards shared international accounting standards and practices is noticeable. We shall examine what are the forces driving this convergence and the different standards used. We shall also examine the potential limits to this convergence.

This exam comprises a mix of 10 practical exercises and short answers questions covering the whole module.