This lesson examines the international dimensions of strategic financial management, including global competition, the role of multinational companies, free trade, and the management of international trade and finance. It covers the impact of international institutions and the complexities of managing financial resources across borders.

• International Financial Strategy: For firms operating globally, strategic financial management must address international factors, including global competition, the role of multinational companies, free trade, protectionism, trade agreements, and common markets. Students discuss the theory and practice of free trade and the management of barriers to trade .

• Role of International Institutions: The module requires evaluating and advising on the impacts of the actions of the World Trade Organisation (WTO), the International Monetary Fund (IMF), The World Bank, and Central Banks on multinational organisations .

• Dividend Policy and Transfer Pricing in Multinationals: This includes determining a company’s dividend capacity and its policy given the company’s short- and long-term reinvestment strategy, its income tax regime within the host jurisdiction, and the organisational policy on the transfer pricing of goods and services across international borders .

• Treasury Management and International Risk: Treasury functions include managing foreign currency risk through various hedging instruments. This involves assessing risk associated with dealings in foreign currency and using techniques such as forward contracts, money market hedging, currency options, futures, and swaps .