25752 - International Finance

Academic Year 2025/2026

  • Moduli: Giovanni Cardillo (Modulo 1) (Modulo 2)
  • Teaching Mode: Traditional lectures (Modulo 1) Traditional lectures (Modulo 2)
  • Campus: Forli
  • Corso: Second cycle degree programme (LM) in International Politics and Economics (cod. 6763)

Learning outcomes

At the completion of the course, students will have a thorough knowledge of concepts and analytical techniques in financial management, and they will be able to apply them to nowadays international market transactions. This includes the ability to understand the governance of multinational companies, and their investing, financing, and risk management decisions, in a perspective of maximising the value to their shareholders.

Course contents

This course examines how exchange rates are determined, how different currency regimes function, and how multinational firms make investment and financing decisions in a global context. Students will connect theoretical models to real-world scenarios and develop the skills needed to analyze policy choices, manage foreign exchange risk, and evaluate cross-border financial strategies.

The course will cover four main thematic blocs.

  1. Foundations of International Finance introduces the unique nature and scope of international financial decisions, the institutional environment and payment systems, and core frameworks - such as, the balance of payments and exchange rate determination, including trade elasticities and the J-curve effects.
  2. The Currency Markets bloc covers the functioning of spot and forward markets, pricing relationships such as covered interest parity, and practical uses of forwards and other basic derivatives for managing currency exposure.
  3. Measuring and Managing Exchange Rate Exposure develops the tools needed to identify, quantify, and hedge transaction, operating, and translation exposures, including regression methods and Value-at-Risk.
  4. Long-Term International Funding and Direct Investment examines the international bond and equity markets, cross-border capital budgeting techniques, cost of capital adjustments, and strategic decisions regarding foreign direct investment and multinational capital structure.

Readings/Bibliography

Primary Textbooks:

  • Sercu, P. (2009). International Finance. Princeton University Press.
  • Levi, M. D. (2009). International Finance (5th ed.). Routledge.
  • Chinn, M. D., & Irwin, D. A. (2025). International Finance. Cambridge Books. 

Additional Resources:

  • Lecture slides & practices exercises.
  • Question bank for exam preparation.
  • Booklet materials.

Teaching methods

Theoretical Sessions:
Each lecture introduces core concepts, models, and frameworks based on the textbook and scholarly research.

Traditional Tutorials:
Computations and model implementation to get prepared for the written exam.

Empirical Sessions:
Students will apply theory to real data using financial data tools: e.g., analyzing historical returns, CAPM estimations (e.g., Excel/STATA).

Assessment methods

The final grade will be calculated as a weighted average of:

  • Bloc Quizzes (25%) – A short quiz will be held at the end of each thematic bloc to assess understanding of key concepts and applications. Details will be provided in the full syllabus on Virtuale.

  • Final Exam (75%) – The final exam will be a written assessment that includes both multiple-choice and open-ended questions. Questions will cover theoretical concepts as well as practical exercises. The multiple-choice section will consist of 11 questions worth 2 points each. The open-ended section will include 3 questions worth 3 points each. The exam duration will be 50 minutes.

  • Class Participation and Contribution on case-based discussions ensures the student to get one-point bonus on top of the final evaluation.

The final grade is measured on a 31-point scale; achieving the maximum score of 31 grants the student the cum laude honor.

Assessment Grid:

  • (a) less than 18: insufficient

  • (b) 18–23: sufficient

  • (c) 24–27: average/good

  • (d) 28–30: very good

  • (e) 30 cum laude: excellent/outstanding

Teaching tools

To support learning, the course will make use of various resources, including:

  • Teaching slides covering key theories, models, and examples.

  • Financial news and press release websites for up-to-date market developments.

  • Specialized financial websites and databases for empirical data and real-world applications.

Office hours

See the website of Giovanni Cardillo

See the website of