Booster Program: International Financial Markets
Threats and opportunities for value creation arising from cross-border operations
This program addresses financial management issues confronting multinational corporations and corporations with extensive international business. Cross-border transactions and multinational operations force managers to consider the effects of exchange rate fluctuations, legal regimes, institutional rigidities, international tax rules and country risk. These cross-border factors are increasingly important with the impetus of global shift towards trade liberalization and economic integration. This program provides managers with an analytical look at major decisions undertaken by firms in an international setting. The subjects addressed include currency exposure and hedging, corporate funding and capital structure, and international capital budgeting.
Executives who want to learn more about the sources of threats and opportunities for value creation arising from cross-border operations.
- To identify the sources of threats and opportunities for value creation arising from cross-border operations;
- To provide managers with the skills and insights they need to address four critical questions in an international setting:
- How to hedge risk exposures arising from international operations?
- How to finance worldwide operations?
- How to value a firm with assets in multiple places around the world?
- How to evaluate the cost of capital for the worldwide operations of a single firm?
- To understand how the application of these techniques are affected by potential conflicts of interest between different stakeholders (e.g. investors, creditors and managers).
- Description of the foreign exchange market and introducing the different types of foreign exchange instruments. This lays the foundations for understanding international finance.
- Exploration how firms are affected by changes in foreign exchange rates and the strategies and tools managers use to manage exchange rate fluctuations.
- Cross-border financing decisions and the advantages to the firm of cross-listing equity shares in more than one country or sourcing funds from the international bond market.
- Cross-border investments and valuation, with particular emphasis on how firms globalize the cost of capital and the process of capital budgeting.
Meet the staff
Prof. Guillermo Baquero (Program Director)
Guillermo Baquero is an associate professor at ESMT Berlin and was appointed as the faculty lead of the newly established Master's in Management Program in 2014. He joined ESMT in September 2007. He received his PhD in Finance from the Erasmus University in 2006.
Guillermo holds an MBA from the Université Catholique de Louvain and an MS in Economics from the Katholieke Universiteit Leuven, which are both in Belgium. He received his BS in Mechanical Engineering in 1994 from Escuela Politécnica del Ejército–in Quito, Ecuador, which is where he was born.
Guillermo’s research has focused on the persistence of hedge funds and mutual funds, the behavior of hedge fund investors, behavioral finance and experimental economics. More specifically, he concerns himself with two issues: the strategic interaction between investors and fund managers under asymmetric incentive schemes; and the effect of divergent time preferences between investing and divesting. He was awarded the prize for the best paper on hedge funds at the European Finance Association meetings in Zurich in 2006.
Guillermo teaches MBA and EMBA courses at ESMT in Corporate Finance, International Finance and Data Analysis. Furthermore, he has taught a number of graduate and undergraduate courses in Investments, Behavioral Finance and Corporate Finance both at the Rotterdam School of Management and at FLACSO-Ecuador.