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UNIVERSITI TEKNOLOGI MARA
Course Name (English) INTERNATIONAL INVESTMENT
Course Code IBM556
MQF Credit 4
Course Description This course covers the main principles and mechanics of international investment. It emphasizes on the mechanics of capital market and how it influences investment decision making process of international firms. It begins with the overview on financial institutions, structure of capital markets and international investment decision valuations.
Transferable Skills 1. Values, attitude and professionalism
2. information management and lifelong learning skills
3. Problem solving and scientific skills
Teaching Methodologies Lectures, Tutorial, Reading Activity, Discussion, Presentation, Small Group Sessions
CLO
CLO1 Analyze the roles of financial institutions and capital markets as fund flow instruments for MNC (PLO6)
CLO2 Demonstrate information retrieval and management in explaining the importance of international capital markets as mechanism to facilitate international trade and investment activity (PLO7)
CLO3 Demonstrate good practices and professionalism in order to mitigate risks in international trade and investment activity (PLO4)
Pre-Requisite Courses No course recommendations
Topics
1. Chapter 1: International Banking and Money Market
1.1) 1.1 International banking services
1.2) 1.2 Reasons for international banking
1.3) 1.3 Types of international banking offices
1.4) 1.4 Capital adequacy standards
1.5) 1.5 International money market
2. Chapter 2: International Bond Market
2.1) 2.1 Foreign bonds, Eurobonds and Global Bonds
2.2) 2.2 Types of instruments
2.3) 2.3 Currency distribution, nationality and type of issuer
2.4) 2.4 International bond credit ratings
2.5) 2.5 Eurobond market structure and practices
2.6) 2.6 International bond market indexes
3. Chapter 3: International Equity Market
3.1) 3.1 Market structure and trading practices
3.2) 3.2 Trading in international equities
3.3) 3.2.1 Yankee Stock Offerings
3.4) 3.2.2 American Depository Receipt
3.5) 3.2.3 Global registered shares
3.6) 3.3 International equity market benchmarks
3.7) 3.4 Factors affecting international equity returns
4. Chapter 4: International Portfolio Investment
4.1) 4.1 International correlation structure and risk diversification
4.2) 4.2 Optimal international portfolio selection
4.3) 4.3 Effects of changes in the exchange rate
4.4) 4.4 International bond investment
4.5) 4.5 International mutual funds
5. Chapter 5: International Capital Structure and the Cost of Capital
5.1) 5.1 Cost of Capital
5.2) 5.2 Cost of capital in segmented versus integrated market
5.3) 5.3 Cross border listing of stocks
5.4) 5.4 The effect of foreign equity ownership restriction
6. Chapter 6: International Capital Budgeting
6.1) 6.1 Domestic versus international capital budgeting
6.2) 6.2 Capital budgeting from the parent firm's perspective
6.3) 6.3 Sensitivity analysis
 
Assessment Breakdown%
Continuous Assessment100.00%
Details of Continuous Assessment
Assessment Type Assessment Description % of Total Mark CLO
Case Study The individual case study report will cover topic related to international banking and investment. 20% CLO2
Final Test Final test covers chapter 1 until chapter 6 30% CLO1
Journal/Article Critique The Individual Self reflection paper/report on article related to international banking & investment. 20% CLO3
Written Report The group written report will cover topic related to international banking and investment 30% CLO2
Reading List
Recommended Text
  • Eun,Resnick 2018, International Financial Management, 8th Ed., Mc-Graw Hill Education [ISBN: 9781259922190]
Article/Paper ListThis Course does not have any article/paper resources
Other References
  • n/a Madura, JeffFinancial Markets and Institutions, Thomson South Western
  • n/a Shapiro, Alan, C., & Sarin, AtulyaFoundations of Multinational Financial Management , John-Wiley & Sons
  • n/a Eiteman, D. K., Stonehill. A. I., & Mofett, M. H.Multinational Business Finance, Pearson