Postgraduate Certificate in International Business Administration (Distance Learning)

Welcome to the module International Business Strategy. In a rapidly changing world, companies that operate across national boundaries are increasingly the norm – domestic businesses serving local markets tend to be smaller, less innovative, less profitable, than those that roam the world searching for favourable opportunities. On the other hand, there are bigger hazards in unfamiliar territories, and intelligence is required to assess markets, capital requirements, financing methods, risk, marketing techniques, and organisational forms, to enable the opportunities to be seized.

This module aims to provide frameworks, techniques and examples to help you participate successfully in the exciting and risky world of international business.

Learning outcomes

When you have completed your study of this module, you will be able to:

• analyse the principles underlying decisions to invest in countries other than the home base
• discuss the basics of business strategies of cost advantage and differentiation
• explain the analysis behind decisions about where to locate production operations
• explain some of the reasons why marketing and pricing strategies can succeed and fail according to the conditions in different countries
• identify the variety of structural arrangements available to the international business
• analyse the options for dealing with currency risk in an international project or business
• analyse the elements that make a location suitable for investment projects
• list and define the types of political risk involved in establishing a business in another country.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Hill CWL (2020) International Business: Competing in the Global Marketplace. 13th Edition. New York, McGraw-Hill Education.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Case Studies: Provide examples of a variety of multinational businesses.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 International Investment

• 1.1 The Economics of International Investment
• 1.2 International Investment
• 1.3 Mergers and Acquisitions

Unit 2 Choice of Entry Strategy

• 2.1 Strategy Basics – Cost and Value
• 2.2 International Strategy
• 2.3 Entry Strategy
• 2.4 Case Studies
• 2.5 Feedback on Case Studies
• 2.6 Conclusion

Unit 3 International Production and Sourcing

• 3.1 Economic Criteria
• 3.2 Beyond Offshoring
• 3.3 Case Studies
• 3.4 Managing the Global Supply Chain
• 3.5 Feedback on Case Studies

Unit 4 International Marketing

• 4.1 Marketing Mix
• 4.2 Global Marketing
• 4.3 Case Studies
• 4.4 Feedback on Case Studies

Unit 5 International Organisation

• 5.1 Introduction
• 5.2 Organisational Architecture
• 5.3 Strategy and Architecture
• 5.4 Case Studies
• 5.5 Feedback on Case Studies
• 5.6 A Successful Example – Siemens

Unit 6 Financial Management in the International Business

• 6.1 Investment Decisions
• 6.2 Financing Decisions
• 6.3 Money Management
• 6.4 Managing Foreign Exchange Risk
• 6.5 Case Studies

Unit 7 Assessing Country Competitiveness

• 7.1 Determinants of National Competitive Advantage
• 7.2 Company Strategy
• 7.3 Case Studies
• 7.4 Feedback on the Case Studies

Unit 8 Assessing Country Risk

• 8.1 Introduction
• 8.2 What is Political Risk?
• 8.3 Country Risk
• 8.4 A Strategic Perspective
• 8.5 Summary
• 8.6 The Examination

Module samples

• M471 Module Introduction (PDF)
• M471 Specimen Examination (PDF)
• M471 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

Welcome to the module Managing the Transnational Corporation. This module is about exploring the management of transnational corporations (TNCs). In doing so, the module considers the transnational as a distinct social, cultural and strategic entity. This is important since TNCs have a global focus which involves engaging with actors from (often) very different cultural backgrounds, and yet these corporations inherently seek to retain (and sometimes impose) their own distinct corporate identities and determine their own strategic orientation. This apparent contradiction can often create tensions, particularly with regard to negotiating with nation states and sub-national authorities over new investments, subsidies and determining tax liabilities or with trade unions over wages, working conditions and/or human resource practices. On the other hand, engaging with diverse actors and cultures may unlock new opportunities for TNCs, particularly if they can successfully exploit the variety of capabilities across their foreign affiliates. If these capabilities can be successfully harnessed within the TNC’s strategic goals, then this might enhance the TNCs prospects for growth and development.

This module explores these issues through a variety of perspectives from different strands of literature. This allows us to capture the essence of the transnational corporation, but at the same time appreciate the differences in the nature of management practice across the globe. For instance, there are often noted (and sometimes subtle) differences in the management styles and strategies of Western and Asian TNCs. Such differences can raise tensions, particularly in the case of international joint ventures. A salient issue is the extent to which management practices have converged towards a global norm.

Learning outcomes

When you have completed your study of this module, you will be able to:

• understand TNCs as distinct social, cultural, technological, economic and strategic entities relevant to the emerging global economy
• explain the nature of international production, and evaluate critically the main theoretical approaches that explain why firms have become transnational 
• evaluate the various organisational alternatives that exist for transnational corporations and assess their effect on coordination and control, the potential for innovation, international human resource practices, and culture
• demonstrate an in-depth knowledge of a range of relevant case studies and explain their implications for both theory and practice 
• compare and contrast various processes of control and coordination across TNCs, and explain why they vary, especially in response to new opportunities and challenges, and the leverage abilities of TNCs in relation to nation states, suppliers and labour
• assess critically the extent to which ‘culture’ is a distinguishing feature of TNCs generally, and when comparing nationally and regionally headquartered TNCs to each other.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Ietto-Gillies G (2019) Transnational Corporations and International Production, Concepts Theories and Effects. 3rd Edition. Edward Elgar.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 The Nature of the Transnational Corporation – An Overview

• 1.1 Why is it Different to Manage a TNC?
• 1.2 What is a Transnational Corp. (TNC)?
• 1.3 What is in a Name? Transnational or Multinational?
• 1.4 Review of Theories of Transnational Production
• 1.5 Case Study
• 1.6 Historical Roots, Recent Trends and the Largest TNCs
• 1.7 Unit Summary

Unit 2 Major Issues Facing TNCs

• 2.1 Introduction
• 2.2 Organisational Architectures in TNCs – Strategy and Structure
• 2.3 Control Mechanisms and Incentives
• 2.4 Exploiting International Leverage Situations
• 2.5 Unit Summary

Unit 3 Differentiation and Integration

• 3.1 Introduction
• 3.2 Differentiation and Integration
• 3.3 Conclusion

Unit 4 Coordination and Control

• 4.1 Key Features of TNCs
• 4.2 Interpreting TNCs as Systems
• 4.3 Controlling
• 4.4 Staffing as Controlling
• 4.5 Illusions of Control – Examples from the Non-profit Sector
• 4.6 Coordination
• 4.7 Outsourcing
• 4.8 Assessing the Ethical Performance of TNCs – a Case Study from Nigeria
• 4.9 Unit Summary

Unit 5 Innovation

• 5.1 Defining Innovation
• 5.2 Managing Innovation
• 5.3 Case Study: 3M
• 5.4 Innovation and Diversity
• 5.5 Virtual Project Teams
• 5.6 Innovation – Risk and Opportunity
• 5.7 Unit Summary

Unit 6 HRM in International Joint Ventures

• 6.1 Introduction
• 6.2 Joint Ventures and National Culture
• 6.3 Organisational Culture and IJVs
• 6.4 HRM in Joint Ventures
• 6.5 Unit Summary

Unit 7 Global HRM

• 7.1 The HRM Paradigm
• 7.2 Distinguishing Between HRM and Personnel Management
• 7.3 Junzi – the Confucian Gentleman
• 7.4 Psychological Contracts in East Asia
• 7.5 International HRM
• 7.6 Global HRM
• 7.7 Unit Summary

Unit 8 Cultures

• 8.1 How Do Cultures Evolve?
• 8.2 Socialisation and Cultural Identity
• 8.3 South Asia as a Context for Managing in TNCs
• 8.4 National Cultures
• 8.5 The Cultures of TNCs
• 8.6 The Reemergence of Indian TNCs
• 8.7 Summary

Module samples

• M467 Module Introduction (PDF)
• M467 Specimen Examination (PDF)
• M467 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

Welcome to the Banking Strategy module. The world of banking has changed considerably in recent years, particularly since the crisis of 2007–09. This module aims to give you a good understanding of the characteristics of the financial system and the role of intermediation, as well as the implications of recent structural changes for bank management and external corporate control. You will learn about banks’ sources of funding and how the environment after the 2007–09 crisis transformed their funding choices.

The module also aims to provide an analysis of the factors that can contribute to success or failure in the execution of banks’ mergers and acquisitions (M&A) transactions, and the cultural challenges that may be crucial to the success of an M&A deal involving banks. We hope that your study of the module will enable you to evaluate the business strategy and implementation failings that have given rise to bank failure and to assess the benefits and costs from regulation of the financial services industry, and the net regulatory burden faced by the banking industry.

Learning outcomes

When you have completed your study of this course, you will be able to:

• analyse the particular risks banks are exposed to as a direct result of the intermediation process
• assess the degree to which a bank's strategy may lead to an optimal level of risk, for the bank and for the financial system as a whole
• describe the financial intermediation linkages in a financial system
• analyse patterns of structural change and strategic positioning over cycles of globalisation, deregulation and consolidation
• describe the sources of funding for banks and discuss how they affect banks' profitability and risk
• explain the sources of risk facing banks
• discuss the changing nature of risks facing banks in emerging economies
• explain the causes of the global financial crisis of 2007–09, identifying the features that were unique to this crisis, and those that are common to other crises
• analyse the business models which made some banks especially vulnerable in that crisis
• consider the strategic implications for banks of the regulatory environment.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Smith RC, I Walter & G DeLong (2012) Global Banking. 3rd Edition. Oxford University Press.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Financial Intermediation – Dynamics and Governance Mechanisms

• 1.1 Introduction
• 1.2 Review of Financial Institutions and Systems
• 1.3 Governance Mechanisms
• 1.4 Core Incentive Problems and the Breakdown of Corporate Governance
• 1.5 Case Study
• 1.6 Conclusions

Unit 2 Strategic Drivers of Structural Change in Global Banking

• 2.1 Introduction
• 2.2 Financial Intermediation Dynamics
• 2.3 Structural Change in Global Banking
• 2.4 The Basics of Banking Strategies – A Simple Strategic Schematic
• 2.5 Drivers of Strategic Strengths and Weakness
• 2.6 Case Study
• 2.7 Conclusion

Unit 3 Strategy and Strategic Positioning

• 3.1 Introduction
• 3.2 A Tool for Strategic Thinking – The C-A-P Model
• 3.3 Globalisation, Regulation and Consolidation
• 3.4 Specialist versus Universal Banks
• 3.5 Sources of Competitive Advantage
• 3.6 Strategic Choices
• 3.7 Case Study
• 3.8 Conclusion

Unit 4 Acquisition and Use of Funds

• 4.1 Introduction
• 4.2 Sources of Bank Funding
• 4.3 Disintermediation and Competition from Non-bank Participants
• 4.4 Funding Models Before, During and After the 2007–09 Crisis
• 4.5 Case Study
• 4.6 Conclusion

Unit 5 Banks' International M&A Deals

• 5.1 Introduction
• 5.2 Reasons for M&A Transactions
• 5.3 Consequences of M&A Transactions
• 5.4 Financing M&A Transactions
• 5.5 Case Studies
• 5.6 Feedback on the Case Studies
• 5.7 Conclusion

Unit 6 Managing Bank Risk

• 6.1 Introduction
• 6.2 Risks Facing Banks
• 6.3 Management of Bank Risks
• 6.4 The Changing Nature of the Risks Facing Banks
• 6.5 Case Studies
• 6.6 Feedback on the Case Studies
• 6.7 Conclusions

Unit 7 Business Models and Systemic Risk

• 7.1 Introduction
• 7.2 Financial Crisis
• 7.3 Business Models
• 7.4 Risk Management Lessons from the 2007–09 Financial Crisis
• 7.5 The Future Shape of Banks
• 7.6 Case Studies
• 7.7 Feedback on the Case Studies
• 7.8 Conclusion

Unit 8 Dealing with Regulatory and Compliance Issues

• 8.1 Introduction
• 8.2 Contradictions and Trade-Offs in Regulation
• 8.3 Regulatory Options
• 8.4 Financial and Market Supervision
• 8.5 Regulation after 2007–09
• 8.6 Case Study
• 8.7 Conclusion

Module samples

• M466 Module Introduction (PDF)
• M466 Specimen Examination (PDF)
• M466 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

In this module you will study the main issues in modern corporate finance. The subject ‘corporate finance’ is a well-established discipline, which is concerned with corporations large enough to have issued shares that are ‘quoted’ on a stock market. We must, though, first clarify what we mean by the main issues, for the issues that are important to one person may be viewed as less important by others.

Learning outcomes

When you have completed your study of this module you will be able to:

• describe modern principles of corporate finance and evaluate their validity
• rationalise corporate finance decisions in the light of agency problems and conflict of interest among corporations' stakeholders
• analyse firms' investment decisions
• discuss firms' choice of capital structure and its implications for the value of the firm
• examine and discuss the key issues related to dividend policy and their implications for the value of the firm
• critically assess the reasons behind mergers and acquisitions and their welfare implications.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Hillier D, S Ross, R Westerfield, J Jaffe, & B Jordan (2021) Corporate Finance. 4th Edition. McGraw-Hill Education.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Excel worksheets: Worksheet exercises are available to download on the VLE.
  Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Perspectives on Corporate Finance

• 1.1 Introduction
• 1.2 Core Theories of Corporate Finance
• 1.3 Key Questions in Corporate Finance
• 1.4 The Objective of the Firm
• 1.5 Agency Problems
• 1.6 Conflict between Shareholders and Bondholders
• 1.7 Conclusion

Unit 2 Net Present Value and Capital Budgeting Decisions

• 2.1 Introduction to Capital Budgeting Decisions
• 2.2 Investment Principles and Net Present Value
• 2.3 Capital Budgeting Decisions
• 2.4 Analysing a Project – A Mini Case
• 2.5 Sensitivity and Scenario Analysis

Unit 3 Return, Risk, Portfolio and Asset Pricing Models

• 3.1 Introduction
• 3.2 Expected Return and Risk
• 3.3 How is the Equilibrium Return on Risky Assets Determined? – The Capital Asset Pricing Model
• 3.4 A More General Model: the Arbitrage Pricing Theory (APT)
• 3.5 Conclusion

Unit 4 Issues in Modern Finance: the CAPM, Efficient Market Hypothesis and Behaviour Finance

• 4.1 Introduction
• 4.2 The Use of CAPM for Calculating the Cost of Capital for Risky Projects
• 4.3 Efficient Capital Markets
• 4.4 Weak, Semi-strong and Strong Forms of Efficiency
• 4.5 Anomalies – Are they Meant to be Extinct?
• 4.6 Implications for Corporate Financing Decisions
• 4.7 Conclusion

Unit 5 Dividend Policy

• 5.1 Introduction
• 5.2 Empirical Evidence on Dividend Policy
• 5.3 The Irrelevance of Dividend Policy
• 5.4 Taxes Can Make Dividend Policy Matter
• 5.5 Asymmetric Information and Signalling
• 5.6 Dividend Policy and Agency Costs
• 5.7 Is There an Optimal Dividend Policy?

Unit 6 Capital Structure I

• 6.1 Introduction – How Much Debt Should the Firm Issue?
• 6.2 The Debt-Equity Irrelevance Theorem
• 6.3 Corporate and Personal Taxes
• 6.4 Effects of Bankruptcy Costs
• 6.5 Implications and Limitations of the Trade-off Theory of Optimal Capital Structure
• 6.6 Conclusion

Unit 7 Capital Structure II: Information Asymmetries and Agency Costs

• 7.1 Introduction
• 7.2 Asymmetric Information Explanations of Capital Structure
• 7.3 Minimising the Agency Costs of Equity and Debt
• 7.4 Conclusion

Unit 8 Mergers

• 8.1 Introduction
• 8.2 Merger Gains and the Sources of Gain
• 8.3 Rationale for Mergres to Take Place
• 8.4 Forms of Takeover
• 8.5 Some Stylised Facts about Merger Activity
• 8.6 Review of the Unit's Questions

Module samples

• M421 Module introduction (PDF)
• M421 Specimen examination (PDF)
• M421 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

This module, Corporate Governance, is specially designed for the postgraduate study of such areas as management, finance, financial law, corporate law, economics and related subjects. The module is designed to increase the depth of your understanding of corporate governance issues. As corporate governance is a multi-disciplinary subject – covering such topics as law, politics, management, finance, and economics – you will find that the module will add to previous study of any of these disciplines. A previous knowledge of corporate governance is not required.

Upon successful completion of this module, it is hoped that students with a variety of backgrounds will understand the key elements of corporate governance and its importance to the international economy. In order to achieve this, a strong emphasis is placed on the relationship between theoretical concepts and real world issues. It is therefore hoped that the module can make a real contribution to your in-depth understanding of the relevant corporate governance issues.

Learning outcomes

When you have completed your study of this module you will be able to:

• outline and discuss the key legal, political and economic features of the major corporate governance systems found around the world
• analyse how corporate governance systems influence performance, including both the performance of individual firms and the allocation of capital within a country
• discuss the evolution of diverse ownership and governance structures across different economies
• evaluate theories of the firm, and explain how they are relevant to the diverse range of ownership structures that exist in reality
• address such practical questions, as how should the board of directors and executive teams be composed; how should executives and board of directors be remunerated given the legal, political and economic framework in the country; how do CEOs decide about the mix of debt and equity finance and how does the mix affect their discretion and control over cash flow?
• explain why the quality of corporate governance is relevant to capital formation
• describe why systematic failure of corporate governance can lead to failure of confidence that could spread from individual firms to entire markets or economies
• discuss the role of corporate governance codes and evaluate their usefulness in achieving better corporate governance practices.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Monks RAG & N Minow (2011) Corporate Governance. 5th Edition. New York, Wiley.
  Hansmann H (2000) The Ownership of Enterprises. Cambridge MA, The Belknap Press of Harvard University.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Introduction to Corporate Governance

• 1.1 Introduction
• 1.2 Approaches to Corporate Governance
• 1.3 The Evolution of Corporate Structure
• 1.4 Corporate Governance, Capital Formation, Corporate Finance and Economic Growth
• 1.5 Concluding Remarks

Unit 2 Theory of the Firm

• 2.1 Competition and Cooperation
• 2.2 Market Contracting Costs vs Ownership Costs
• 2.3 Recent Unconventional Developments
• 2.4 More on Complementary Perspectives
• 2.5 Concluding Remarks

Unit 3 Corporate Governance and the Role of Law

• 3.1 The Basic Question in the Debate
• 3.2 Competing Explanations
• 3.3 The Recent Rise of Equity Culture in the EU
• 3.4 A Historical Perspective
• 3.5 Implications for Transition and Developing Economies

Unit 4 Corporate Governance Around the World

• 4.1 A Framework for Comparison
• 4.2 Equity Market-based System vs Bank-led System
• 4.3 Family-based Corporate Governance in Asia
• 4.4 The Pyramid Structure and the Internal Capital Market
• 4.5 Concluding Remarks

Unit 5 Board Composition and Control

• 5.1 Board Composition and Control: Practical and Theoretical Trade-offs
• 5.2 The Typical Anglo-American Board: Past and Present
• 5.3 The Legal Framework Governing the Board
• 5.4 The Board Management Relationship in Reality
• 5.5 Director Selection
• 5.7 Concluding Remarks

Unit 6 CEO Compensation

• 6.1 Introduction: Major Challenges Faced by CEOs
• 6.2 Why CEOs Fail
• 6.3 An 'Ideal' CEO
• 6.4 CEO Compensation and Employment Contract
• 6.5 Stock Options
• 6.6 Case Study: General Electric
• 6.7 Concluding Remarks

Unit 7 International Governance

• 7.1 Corporate Governance has Gone Global
• 7.2 Why Do Companies List Abroad?
• 7.3 Crisis-Driven Reforms in Emerging Markets
• 7.4 Reforms in the Developed World
• 7.5 The Case of Daimler Chrysler
• 7.6 Concluding Remarks

Unit 8 Overview of Corporate Governance Codes

• 8.1 The OECD Principles (1999–2004)
• 8.2 The International Corporate Governance Network (ICGN) Principles
• 8.3 Other Leading International Codes
• 8.4 Reports on the Observance of Standards and Codes
• 8.5 Concluding Remarks

Module samples

• M444 Module Introduction (PDF)
• M444 Specimen Examination (PDF)
• M444 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

This module aims to achieve the following goals.

• First, present you with an overview of the African continent with regard to doing business.
• Second, help you to gain insights from the successes and failures of domestic and international businesses in various African countries.
• Finally, enable you to acquire enough familiarity with African businesses and processes to start making strategic decisions.

Learning outcomes

When you have completed this module, you should feel confident of your ability to:

• understand the economic developments and opportunities and challenges of business in Africa
• explain what characteristics African economies exhibit, and what fundamental factors and underlying conditions have an influence on major developments in the business sphere
• relate current events and economic developments in the continent to their historical, political and economic context
• assess the potential for investment in Africa
• make strategic choices about where and how to enter African markets
• assess the role of finance and capital markets in different regional settings
• interpret and use information you receive on regional developments in your own research, professional and business needs in a professional manner.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key text: Suzanne M. Apitsa and Eric Milliot (Eds.) (2021) Doing Business in Africa. Palgrave Macmillan.
• Module readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Economies in Africa

• Economic and demographic characteristics and trends
• The transitions taking place: from trade and investment with ex colonial powers to China and India; from planning to markets; digital economy; fossil to renewable energy.
• Wealth and income distribution.
• The dominant companies on the continent

Unit 2 Internationalisation

• Market entry methods
• Choice of country
• Country risk analysis

Unit 3 International Marketing

• Market entry strategies
• Targeting and segmentation
• Brand positioning

Unit 4 Natural Resources

• Developments in oil and gas extraction and refining
• Growth of renewable energy and on and off grid electricity supply
• Extraction of coltan, lithium, gold, copper and diamonds
• Foreign investment in the resource industries

Unit 5 Logistics

• Trends and opportunitie
• Transport infrastructure development
• Development of air freight
• The major players in logistics

Unit 6 Banking and Finance

• Domestic and international banks
• Trends in retail banking and electronic and telephone banking
• Commercial banks
• African stock exchanges

Unit 7 Retail

• Growth of multinational retailing within Africa
• Understanding transnational retail failures
• Domestic retail operations

Unit 8 International Organisation and Culture

• Organisational form for ventures in and into Africa
• Components of organisational culture that can enhance or inhibit investment
• Some rules for operating in Africa

Disclaimer

Important notice regarding changes to programmes and modules

The starting point for understanding any financial market is that, on a large scale, firms and governments have to turn to institutions (such as banks) and markets (such as bond markets) to finance their core operations. Even if a government or firm currently has no need to borrow or obtain new capital funds, it operates on financial markets to manage its old financial liabilities (such as its outstanding bonds which are traded on markets) or to invest currently surplus funds. At the same time, banks and other financial institutions essentially operate on financial markets as their main business activity.

The fundamental fact underlying this module is that such large players’ financial operations take place on financial markets that are international in character. That is especially true now that, since the 1970s, economies have experienced a fast pace of globalisation. For centuries firms’ and governments’ financial operations have generally involved an international dimension, but modern globalisation has been accompanied by changes in both its scale and its character.

You will study a variety of theories throughout the module, which seek to explain the ways in which finance is handled internationally. One question we want you to keep in mind throughout your study of is: ‘Is the theory true?’ Whatever your answer, your next step should be to consider the related, but different question ‘Is the theory useful?’

Learning outcomes

When you have completed your study of this module you will be able to:

• explain the nature of an exchange rate regime, and assess the future evolution of such regimes
• identify and discuss drivers of the growth of the global foreign exchange market
• explain the nature of exchange rate quotations
• discuss the foreign exchange market microstructure
• interpret balance of payments accounts
• use purchasing power parity measures of gross domestic product (GDP)
• explain the law of one price
• assess the uses of absolute purchasing power parity and relative purchasing power parity
• explain how firms can use currency derivatives to manage risks through hedging
• discuss what determines whether firms do use currency derivatives for hedging
• discuss models and empirical evidence on the difference between the beta coefficient of multinational enterprises as compared with domestic firms
• outline evidence on the connection between agency costs and the capital structure of multinational enterprises
• explain the main features of 'third generation' models of currency crises
• discuss the effects of regulatory regimes on firms' choice of stock exchange for their foreign listings
• explain the differences and relative merits of project finance compared to corporate finance as methods of raising international finance
• compare them with the main features of first and second generation models

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Eiteman DK, AI Stonehill & MH Moffett (2021) Multinational Business Finance. 15th (Global) Edition. Pearson Higher Education.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 The International Context of Finance

• 1.1 Exchange Rate Regimes
• 1.2 Fixed and Floating Exchange Rates
• 1.3 Exchange Rate Regimes – a Bipolar Future?
• 1.4 Recent Examples of Hard Pegs and Intermediate Regimes
• 1.5 A New Bretton Woods System?
• 1.6 Conclusion

Unit 2 The Markets for Foreign Exchange

• 2.1 A Global Twenty-Four-Hour Market
• 2.2 The Mechanics of the Foreign Exchange Market
• 2.3 Hedging Techniques
• 2.4 Market Microstructure
• 2.5 Conclusion

Unit 3 Exchange Rates and Prices

• 3.1 Introduction
• 3.2 The Balance of Payments
• 3.3 A Standard for Measuring Economies
• 3.4 Purchasing Power Parity Theory
• 3.5 The Big Mac Measure
• 3.6 Empirical Evidence – Short-Run Deviations from Purchasing Power Parity
• 3.7 Conclusion

Unit 4 Exchange Rates and Interest Rates

• 4.1 Introduction
• 4.2 Interest Rates and Exchange Rates
• 4.3 Interest Rate Parity
• 4.4 Conclusion

Unit 5 Managing Foreign Exchange Exposure

• 5.1 Introduction
• 5.2 Types of Risk Exposures and Their Management
• 5.3 Financial Firms' Management of Currency Exposure
• 5.4 Empirical Studies on Currency Hedging
• 5.5 Conclusion

Unit 6 International Corporate Finance and Project Finance

• 6.1 Introduction
• 6.2 Corporate Finance – Going International
• 6.3 Corporate Finance – International Equity Markets
• 6.4 International Bond Issues
• 6.5 How Diversification Affects Firms' Financial Needs
• 6.6 More Reading and a Conclusion

Unit 7 Capital Structure and Cost of Capital in International Financing

• 7.1 Introduction
• 7.2 How International Financing Affects Firms' Costs
• 7.3 Does Localisation Matter?
• 7.4 Conclusion

Unit 8 Tax Policies of Multinationals

• 8.1 Introduction
• 8.2 International Tax Environment
• 8.3 T ax Arbitrage
• 8.4 Conclusion

Module samples

• M442 Module Introduction (PDF)
• M442 Specimen Examination (PDF)
• M442 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

Welcome to the Financial Reporting module. Accounting is a vital yet complex task for any organisation. Businesses and public organisations need to keep accurate records of their income and spending. This information is needed both for internal decision-making and to demonstrate accountability to their stakeholders. This module is designed to give students sufficient knowledge of financial reporting practices, in both the private and public sectors, to use the information produced and to contribute to debates on the development of reporting policy. The module concentrates on financial reporting using the International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS). These standards have now been adopted in many countries; other countries are in the process of adoption or have implemented similar systems.

Learning outcomes

When you have completed your study of this module, you will be able to:

• discuss the international conceptual frameworks for financial reporting in the public and private sectors
• discuss the development and global adoption of the International Public Sector Accounting Standards (IPSAS) and the International Financial Reporting Standards (IFRS)
• explain and contrast the differences in external reporting on a cash and accruals basis
• discuss the accounting treatment for specific assets and liabilities in accordance with IPSAS and IFRS
• discuss the process of consolidating financial statements and identify relevant accounting standards
• discuss the application of governance principles and compare with national governance guidance.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: 
  • Elliott B & J Elliott (2019) Financial Accounting and Reporting. 19th Edition. Pearson.
  • Müller-Marqués Berger T & EY (2018) IPSAS Explained: A Summary of International Public Sector Accounting Standards. 3rd Edition. John Wiley & Sons.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Context of Financial Reporting

• 1.1 Introduction
• 1.2 Private Versus Public Sectors
• 1.3 Rationale for Financial Reporting Standards
• 1.4 International Conceptual Framework – Public Sector
• 1.5 International Conceptual Framework – Private Sector
• 1.6 Conclusion

Unit 2 Accounting Concepts 1

• 2.1 Financial Standards: IFRS versus IPSAS
• 2.2 Cash- Versus Accruals-Based Accounting
• 2.3 Cash Versus Accruals and Accounting Standards
• 2.4 Case Study
• 2.5 Feedback on Case Study
• 2.6 Conclusion

Unit 3 Accounting Concepts 2

• 3.1 Income, Capital and Value
• 3.2 The Accountant’s View
• 3.3 The Economist’s View
• 3.4 Accounting for Changes in Price Levels
• 3.5 Case Study
• 3.6 Feedback on Case Study
• 3.7 Conclusion

Unit 4 Accounting for Assets

• 4.1 Current Assets
• 4.2 Non-Current Assets
• 4.3 Valuing Assets in Agriculture
• 4.4 Case Study
• 4.5 Feedback on Case Study
• 4.6 Conclusion

Unit 5 Accounting for Liabilities

• 5.1 Current and Non-Current Liabilities
• 5.2 Provisions and Contingent Liabilities
• 5.3 Financial Instruments
• 5.4 Case Studies
• 5.5 Feedback on Case Studies
• 5.6 Conclusion

Unit 6 Leases and Partnerships

• 6.1 Leases
• 6.2 What are Public Private Partnerships?
• 6.3 Use of PPP
• 6.4 Accounting for PPP
• 6.5 Case Study
• 6.6 Feedback on Case Study
• 6.7 Conclusion

Unit 7 Group Accounts

• 7.1 Group Accounts
• 7.2 The Consolidation Process
• 7.3 Users and Uses of Consolidated Financial Statements
• 7.4 Case Studies
• 7.5 Feedback on Case Studies
• 7.6 Conclusion

Unit 8 Governance

• 8.1 Definitions
• 8.2 Governance Failures
• 8.3 Good Governance in the Public Sector
• 8.4 Good Governance in the Private Sector
• 8.5 International Comparisons and National Perspectives
• 8.6 Conclusion
• 8.7 The Examination

Module samples

• M492 Module Introduction (PDF)
• M492 Specimen Examination (PDF)
• M492 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

This module introduces concepts and tools for valuing companies in a consistent manner. You should find it useful as a starting point and guide for analysing the performance of companies and industries of your interest, and for interpreting and assessing valuations.

The module should be useful for practitioners working in various market environments – from developed countries to emerging markets, from services to manufacturing industries, and from the viewpoints of managers to the desks of stock analysts.

Learning outcomes

When you have completed this module and its readings, you will be able to do the following:

• discuss the importance of value to the performance of companies and economies, and differentiate between activities that create value and those that do not
• explain how to calculate the Return On Invested Capital (ROIC), why a high ROIC can be sustained by a competitive advantage, and the role of pricing advantages and cost advantages in value creation
• provide a proper assessment and organisation of financial statements
• analyse ROIC and revenue growth and assess the financial health of a company with respect to its ability to take on short-term and long-term projects
• denote the properties of WACC, how to estimate it, and alternative ways to calculate its components, and its limitations
• provide a verification of valuation results and sensitivity analysis which helps confirm the value drivers of a company under a broad set of conditions
• identify the economic fundamentals of value – the return on invested capital and expected revenue growth
• explain what is meant by behavioural finance, distinguish between informed investors and noise traders and discuss the main managerial implications of market efficiency.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Koller T, M Goedhart & D Wessels (2015) Valuation: Measuring and Managing the Value of Companies, 6^th (University) Edition, McKinsey & Company.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Foundations of Value Creation

• 1.1 Introduction
• 1.2 Why Study 'Value'?
• 1.3 Growth and Return on Invested Capital (ROIC)
• 1.4 The Conservation of Value
• 1.5 Risk and Value Creation
• 1.6 The Maths of Value Creation
• 1.7 Expectations and Why Shareholder Expectations Become a Treadmill
• 1.8 Decomposing TRS
• 1.9 Conclusion

Unit 2 Sources of Value Creation

• 2.1 Introduction
• 2.2 Drivers of Return on Invested Capital
• 2.3 Competitive Advantage
• 2.4 The Sustainability of ROIC
• 2.5 Drivers of Revenue Growth
• 2.6 Growth and Value Creation
• 2.7 The Difficulty of Sustaining Growth
• 2.8 Conclusion

Unit 3 Framework and Organisation of Valuation

• 3.1 Introduction
• 3.2 Enterprise Discounted Cash Flow Model
• 3.3 Economic-Profit-Based Valuation Models
• 3.4 Adjusted Present Value Model
• 3.5 Reorganising the Accounting Statements
• 3.6 Conclusion

Unit 4 Performance Analysis

• 4.1 Introduction
• 4.2 Analysing ROIC
• 4.3 Analysing Growth
• 4.4 Credit Health and Capital Structure
• 4.5 Mechanics of Forecasting
• 4.6 Additional Issues regarding Forecasting
• 4.7 Continuing Value: DCF Valuation
• 4.8 Continuing Value: Economic-Profit Valuation
• 4.9 Common Pitfalls and Limitations of Forecasting
• 4.10 Conclusion

Unit 5 Cost of Capital and Value per Share

• 5.1 Introduction
• 5.2 Weighted Average Cost of Capital
• 5.3 Estimating the Cost of Equity
• 5.4 Estimating the After-Tax Cost of Debt
• 5.5 Using Target Weights to Determine the Cost of Capital
• 5.6 Valuing Non-Operating Assets
• 5.7 Valuing Debt and Debt Equivalents
• 5.8 Valuing Hybrid Securities and Minority Interests
• 5.9 Conclusion

Unit 6 Reporting Results

• 6.1 Introduction
• 6.2 Verifying Results
• 6.3 Sensitivity Analysis
• 6.4 Creating Scenarios
• 6.5 Valuation by Parts
• 6.6 Using the Multiples
• 6.7 Using the Peer Group
• 6.8 Alternative Multiples
• 6.9 Conclusion

Unit 7 Market Value

• 7.1 Introduction
• 7.2 The Role of Economic Fundamentals
• 7.3 Market Valuation Levels – Return on Invested Capital and Growth
• 7.4 Expectations and Returns to Shareholders
• 7.5 Do Earnings Matter over Cash Flows?
• 7.6 Technical Trading Factors and Stock Market Values
• 7.7 Conclusions

Unit 8 Agents and Efficient Markets

• 8.1 Introduction
• 8.2 Company Mispricing
• 8.3 Market Mispricing
• 8.4 The Role of Investors
• 8.5 Further Challenges of Behavioural Finance
• 8.6 Market Efficiency – Managerial Implications
• 8.7 Conclusions
• 8.8 Module Summary – ‘What you have and have not studied’

Module samples

• M464 Module Introduction (PDF)
• M464 Specimen Examination (PDF)
• M464 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

To many, information has become a strategic asset that any organisation should acquire, maintain and use. Information is now seen as a key to corporate growth and sustainability. Therefore, talking about information becomes part of the day to day job of managers at different levels. Important investments are made to automate the management of information, in other words to make information electronic and facilitate its flow, exchange and storage. With information, employees are continuously encouraged to discover and seize opportunities to attract clients, increase sales and maintain a company's strategic position. Nowadays it is also customers who demand to electronic information at the palm of their hands, in their computers, tablets or mobile phones.

This module seeks to address three issues:

• the great potential of information and communication technologies (ICTs) to support the management of information and thus contribute to organisational transformation, improvement and sustained success
• the reasons behind the widespread failure of information-based systems and technologies to achieve that potential.
• the possibilities of, and constraints on, closing the gap between what information and technologies offer together and what can actually deliver to organisations.

This module is directed to managers who are responsible for or taking part in projects that bring competitive advantages through the use of information and associated technologies.

Learning outcomes

When you have completed your study of this module and its core readings, you will be able to:

• explain latest developments in information and communication technologies (ICTs) and information systems (IS)
• analyse why computerised information systems fail so frequently with reference to the role of information, knowledge, decision making, and types of IS.
• clarify the basic features of different types of software applications and related ICTs that support information systems, as well as their capabilities, benefits and costs (financial and non-financial)
• demonstrate different ways in which information systems and the software applications that compose them can be better planned, developed and maintained
• offer systems thinking as a way to bring together different issues (technical and non-technical) to be considered in the adequate planning, development and implementation of IS.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts:
  • Córdoba-Pachón J-R (2010) Systems Practice in the Information Society. Routledge.
  • Chaffey D (2015) Digital Business and E-Commerce Management. 6th Edition. Pearson.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 An Introduction to Information Systems

• 1.1 Information in Organisations
• 1.2 Defining Information Systems – The Process Model
• 1.3 E-Commerce and Digital Business
• 1.4 Systems and Systems Thinking
• 1.5 Analysing Information Systems' Case Studies
• 1.6 Conclusion

Unit 2 Information and Communication Technologies in the Network Society Era

• 2.1 Introduction
• 2.2 The Network Society
• 2.3 Communication and Networks
• 2.4 Software Applications
• 2.5 Conclusion

Unit 3 The Digital Business Environment and Digital Business Strategies

• 3.1 Introduction
• 3.2 The Art of War
• 3.3 Planning for a Digital Business
• 3.4 Environmental Scanning
• 3.5 Conclusion

Unit 4 People and Information in Networked Organisations

• 4.1 Introduction
• 4.2 Knowledge at Work
• 4.3 Defining Organisations
• 4.4 Management Roles and Management Information
• 4.5 The Role of People in Information Systems
• 4.6 The Impact of Computerised Information Systems on Organisations
• 4.7 Managing Change in Organisations
• 4.8 Conclusion

Unit 5 Types of Information Systems

• 5.1 Introduction
• 5.2 Types of Information Systems
• 5.3 Basic Data-Gathering Systems (BDS)
• 5.4 Information Systems in Action
• 5.5 Management Information Systems (MIS)
• 5.6 Decision Support Systems (DSS)
• 5.7 Executive Information Systems (EIS)
• 5.8 Enterprise Resource Planning Systems (ERP)
• 5.9 The Rise of Social Media
• 5.10 Conclusion

Unit 6 Planning Information Systems

• 6.1 Introduction
• 6.2 Revisiting the Information Society
• 6.3 Managing Transformations
• 6.4 Engagements
• 6.5 Unintended Consequences
• 6.6 A Final Consideration
• 6.7 Conclusion

Unit 7 Information Systems Development

• 7.1 Introduction
• 7.2 IS Planning Revisited
• 7.3 Types of IS Development
• 7.4 The System Development Lifecycle
• 7.5 Information Systems Projects
• 7.6 Systems Analysis
• 7.7 System Design
• 7.8 System Implementation
• 7.9 System Support
• 7.10 Conclusion

Unit 8 E-Procurement and Customer Relationship Management (CRM)

• 8.1 Introduction
• 8.2 Revisiting the Supply and Sell Sides of the Networked Organisation
• 8.3 Systemic Thinking in the Supply Chain
• 8.4 Supply-Side Strategies – E-Procurement
• 8.5 Approaches to E-Procurement
• 8.6 Sell-Side Applications – Customer Relationship Management (CRM)
• 8.7 Online CRM
• 8.8 Social Media and CRM Strategy
• 8.9 Failed CRM
• 8.10 Conclusion

Module samples

• M476 Module Introduction (PDF)
• M476 Specimen Examination (PDF)
• M476 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

Welcome to this module on Risk Management: Principles and Applications. This module has four main aims, to:

• illustrate the main types of risk
• present the most important ideas and methods used in the analysis of portfolios of financial securities, including stocks and bonds
• explain how rational investors can use financial derivatives (mainly, futures and options) in order to alter the risk of their investment position
• illustrate some more specialised risk management techniques, such as Value at Risk and Credit Risk.

The emphasis throughout is on the general principles behind the investment decisions, rather than on case studies or anecdotal evidence. Thus, you will study, for instance,

• the main features of portfolios, which include stocks and bonds,
• how to calculate their risk, and
• how investors can combine their holdings of different securities to reduce their overall risk without sacrificing return.

Similarly, when you deal with futures and options, you will explore how these instruments can be used to manage risk and to expand the opportunity set of investors.

Learning outcomes

When you have completed this module, you will be able to:

• outline the most important strategies of risk management
• explain how stocks and bonds can contribute to the risk and return of a financial portfolio
• discuss the key principles of diversification of financial investment
• correctly measure the risk of financial portfolios
• explain the risk profile involved in financial derivatives, such as futures and options
• discuss the importance of Value at Risk and scenario analysis
• define and use the principles of credit risk analysis

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.

Key texts: Elton EJ, Gruber MJ, SJ Brown & WN Goetzmann (2014) Modern Portfolio Theory and Investment Analysis. 9th Edition. John Wiley & Sons.
Hull JC (2017) Fundamentals of Futures and Options Markets. 9th Edition. Pearson
Crouhy M, D Galai & R Mark (2014) The Essentials of Risk Management. 2nd Edition. McGraw-Hill.

Virtual learning environment: You will have access to the VLE, which is a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Introduction to Risk Management

• 1.1 Introduction to Portfolio Analysis
• 1.2 Risks Faced by Financial and Non-financial Institutions
• 1.3 Financial Securities and Financial Markets
• 1.4 The Mean-Variance Approach
• 1.5 The Opportunity Set under Risk – Efficient Portfolios
• 1.6 Short Sales and Riskless Lending and Borrowing
• 1.7 How to Compute the Efficient Set
• 1.8 Conclusion

Unit 2 Portfolio Analysis

• 2.1 Introduction
• 2.2 The Single-Index Model
• 2.3 Methods for Estimating Betas
• 2.4 Fundamental Betas
• 2.5 Multi-Index Models
• 2.6 Fundamental Multi-Index Models
• 2.7 Conclusion

Unit 3 Management of Bond Portfolios

• 3.1 Introduction
• 3.2 Returns on Bonds
• 3.3 The Term Structure of Interest Rates
• 3.4 Default Risk and Callable Bonds
• 3.5 Duration
• 3.6 Convexity
• 3.7 Passive Bond Portfolio Management – Matching, Immunisation, Indexation
• 3.8 Active Bond Portfolio Management – Index Models
• 3.9 Active Bond Portfolio Management – Swaps
• 3.10 Conclusion

Unit 4 Futures Markets

• 4.1 Introduction
• 4.2 Description of Financial Futures
• 4.3 Pricing of Financial Futures
• 4.4 Futures Strategies
• 4.5 Examples of Using Futures
• 4.6 Interest Rate Futures
• 4.7 Currency Futures
• 4.8 Conclusion

Unit 5 Options Markets

• 5.1 Introduction
• 5.2 Features of Options Contracts
• 5.3 Options on Stocks and Futures
• 5.4 Risk Exposure and Profit Potential of Options and Futures
• 5.5 The Put-Call Parity Formula
• 5.6 Option Pricing – The Black-Scholes Formula
• 5.7 Pricing of Options on Futures
• 5.8 Price Volatility
• 5.9 Conclusion

Unit 6 Risk Management with Options

• 6.1 Introduction
• 6.2 Speculation with Options – Combinations of Calls and Puts
• 6.3 Hedging with Options – against a Price Increase
• 6.4 Hedging with Options – against a Price Decline
• 6.5 Sensitivities of Option Prices
• 6.6 Delta Hedging
• 6.7 The 2007 Credit Crisis and the Role of Derivatives
• 6.8 Conclusion

Unit 7 Value at Risk

• 7.1 Introduction
• 7.2 Definition of Value at Risk
• 7.3 Calculation of Value at Risk – the Variance-Covariance Approach
• 7.4 Delta-Normal VaR
• 7.5 Historical Simulations Approach
• 7.6 Incremental-VaR and DeltaVaR
• 7.7 Stress Testing and Scenario Analysis
• 7.8 Limitations of VaR – EVaR
• 7.9 Conclusion

Unit 8 Credit Risk

• 8.1 Introduction
• 8.2 Credit Rating Systems
• 8.3 Internal Risk Rating
• 8.4 CreditMetrics
• 8.5 Analysis of Credit Migration
• 8.6 Valuation of Bonds
• 8.7 Forward Distribution of Changes in the Value of Bonds
• 8.8 Credit VaR for a Bond or Loan Portfolio
• 8.9 Credit VaR and Calculation of Capital Charge
• 8.10 Conclusion

Module samples

• M423 Module Introduction (PDF)
• M423 Specimen Examination (PDF)
• M423 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules

The Chinese economy has been growing for decades at breakneck speed and it is expected to overcome the USA before the end of 2020s as the world’s first economy. From its opening in 1978 and the creation of the SEZs (Special Economic Zones), the country became the world’s manufacturing powerhouse. Its GDP growth has averaged almost 10 per cent a year, and more than 850 million people have been lifted out of poverty. Even more importantly, China’s path to the top has been both unique and fascinating, but also fright with dangers. The structural complexities of its development model in a continuously evolving landscape all make understanding the way China functions often challenging and time-consuming.  

For these reasons, this module has been specifically outlined to provide both an in-depth outlook of China at a political and economic level and an up-to-date analysis, which takes into account not only the historical perspective but also the new era opened by Xi Jinping’s accession to power in 2012.

As such, the module itself is multi-disciplinary by design, spanning from subjects such as economics, trade & investment, international business and finance to include political sciences, security studies, and innovation technology. Last but not the least, the final section is devoted to the looming challenges the country will face in the following years, both internally and in the international arena, together with opportunities for continuous prosperity.

Learning outcomes

Upon completion of the module, you will have acquired a critical and informed perspective about the Chinese state and its economic and political fundamentals, including the country’s geographical and cultural dimensions and its rich historical background.

In particular, you will be able to:

• understand the political, economic, cultural, social landscape of China and the way  it has evolved since 1949;
• outline the trajectory China undertook and that made it an example of an emerging country with unique characteristics first and a fast-rising superpower later;
• discuss the defining features of Chinese external trade and the upward trends in FDIs;
• illustrate the typology and the pace of the economic reforms to the state and non-state actors, including the provincial bodies, and outline the rise of the private sector;
• analyse the importance of business networks, industrial clusters and overseas communities in the ongoing management practice;
• understand both the long-term geopolical trends in the Greater China region and the challenges the country faces in the coming decades.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: 
  • Naughton B (2018) The Chinese Economy: Adaptation and Growth. Boston: MIT Press
  • Lin JY (2012) Demystifying the Chinese Economy. Cambridge: Cambridge University Press.
• Module readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts, and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 China and its Place in the World

• 1.1 A Unique Country
• 1.2 One System, Many Provinces
• 1.3 A Few Thousand Years of History
• 1.4 Beyond the Mainland: Hong Kong, Macao, Taiwan
• 1.5 Overseas Chinese: The Diaspora
• 1.6 Conclusion

Unit 2 The Political and Economic Institutions of China

• 2.1 The Party
• 2.2 The SOE and the Central Government Bodies
• 2.3 The Provincial Governments and Local Institutions
• 2.4 The Private Sector
• 2.5 Conclusion
• Case Study: Xi Jinping’s New China

Unit 3 Geographical Facets of the Chinese economy

• 3.1 The Jiangze River Delta
• 3.2 The Pearl River Delta
• 3.3 Beijing and the Technological Districts
• 3.4 A Tiered City System
• 3.5 Conclusion
• Case Study: Chengdu Between History and Innovation

Unit 4 China’s Foreign Direct Investments

• 4.1 Snapshot of Chinese FDIs in 2021
• 4.2 The Rationale Behind FDIs, Both as an Investor and a Receiving Country
• 4.3 The SEZs and the Opening of China
• 4.4 China’s Going Out Strategy
• 4.5 OBOR/BRI and a Global China
• 4.6 Conclusion
• Case Study: Beidou as a Geopolitical Tool

Unit 5 China’s Foreign Trade

• 5.1 The World’s Manufacturing Powerhouse
• 5.2 A Short History of Chinese Trade Exchanges
• 5.3 China and the WTO
• 5.4 Trade Logistics and FTAs
• 5.5 The Political Economy of Trade
• 5.6 Conclusion
• Case Study: China’s Trade Wars. Past and Present

Unit 6 Banking, Currency, Capital Markets and Web-based Economy

• 7.1 China’s Capital Market Development
• 7.2 Key Features of China’s Equity Market Reform
• 7.3 The Fintech Revolution
• 7.4 Chinese Unicorns and Foreign Listed Companies
• 7.5 Conclusion
• Case Study: Chinese M&A in South-East Asia’s Online Business

Unit 7 Doing Business in China

• 7.1 General Considerations
• 7.2 Market Entry Mode Strategy Choices
• 7.3 The Corporate Structure And The Case For Joint Ventures
• 7.4 A Changing Labour Market
• 7.5 Conclusion
• Case Study: The Art of Negotiation in China

Unit 8 China’s Future Challenges

• 8.1 The Looming Demographic Crisis
• 8.2 The Employment Challenges
• 8.3 From Export-led Growth to Increasing Domestic Consumption
• 8.4 The Reform of Pensions and Healthcare Sector
• 8.5 Non Traditional Security Issues: Food, Energy, Environment, Health
• 8.6 The Trade-off Between Systemic Stability and Political Freedom
• 8.5 Conclusion
• Case Study: Hong Kong’s new National Security Law and the Business Future of the SAR.

Disclaimer

Important notice regarding changes to programmes and modules

For many years, the Middle East and North African (MENA) region has continued to attract the attention of academics and the public alike. Apart from its social upheavals and headline-grabbing political and military events, the region also combines attractive economic opportunities in sectors such as energy, logistics, finance and construction, with a significant political risk profile that affects domestic and international actors alike.

These perceived risks have increased since the 2003 US invasion of Iraq, and increasingly since the onset of the Arab Spring in 2011. As ever larger parts of the region have experienced a deterioration of their security situation, their problems have come to be viewed increasingly in military, rather than economic and administrative terms, as Libya, Syria, northern Iraq, and Yemen turned into battlefields at different points in time.

Nevertheless, there are a limited number of economic, political and cultural factors that have combined to determine the shape of the economic environment in the Middle East and North Africa for the foreseeable future. Engaging with these, and integrating them into policies, administrative solutions and business plans early on, will give people within the region, as well as people working with the region, the best prospect for success in their endeavours.

With this in mind, this regionally oriented module aims to achieve the following goals.

• First, it will help you develop a system of coordinates to capture regional economies and their problems.
• Second, the module will familiarise you with the most relevant theoretical approaches in thinking about the region. Many of these, such as the concept of the rentier state, may have originated in political science, but they continue to have relevance for economic analysis and planning as well.
• Finally, you should become familiar with the main data sources to be tapped in researching the MENA region, and you should learn through practical engagement with the data, to produce well-reasoned and reflected arguments that apply to this part of the world.

Learning outcomes

When you have completed this module, you should feel confident of your ability to understand the economic developments in the MENA region, including their context and historical background. You will have acquired a general frame of reference that will help you assess developments in the region in the spheres of economics, public policy and business. In particular, you will be able to:

• explain what sets the MENA region apart, and what fundamental factors and underlying conditions have an influence on major economic and political developments in the business sphere
• relate current events and economic developments in the region to their historical, political and economic context
• discuss the administrative and political traditions of the MENA states, and the way they play out in individual countries within the region
• assess the potential for FDI into the region, and analyse investment streams into, within and from this part of the world
• explain the nature and performance of trade relations within the region, and the outcomes they have had for individual MENA states
• outline the nature of HR developments and labour market outcomes in a particular setting within the region on the basis of a larger frame of reference taking in regional developments
• assess the role of finance and capital markets in different regional settings
• analyse the role of religion for MENA businesses and the economic environment in different MENA settings
• access, analyse and present qualitative or quantitative data on regional developments
• interpret and use information you receive on regional developments in your own research, professional and business needs in a professional manner.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Melani Cammett, Ishac Diwan, Alan Richards & John Waterbury (2015) A Political Economy of the Middle East. 4th Edition. Boulder CO: Westview Press.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 Common Features of MENA Economies

• 1.1 The Institutions and Economic Environment of the MENA Region
• 1.2 Localising the MENA Region
• 1.3 Geographic Characteristics of the Region
• 1.4 Some Stylised Facts about History
• 1.5 Some Stylised Facts about Religion and Economy
• 1.6 Conclusion

Unit 2 The Macroeconomic and Institutional Environment

• 2.1 Economic Growth, GDP, and GDP per Capita in the MENA Region
• 2.2 The Resource Curse and the Rentier State as Analytical Prisms
• 2.3 The Quality of Governance in the MENA Region
• 2.4 Conclusion

Unit 3 The Business–State Relationship in the MENA Region

• 3.1 General Remarks about the State–Business Relationship
• 3.2 The State–Business Relationship in MENA Countries: A Typology of Political Settlements
• 3.3 MENA States as Providers of Public Goods
• 3.4 MENA States as Producers and Market Participants
• 3.5 MENA States as Regulators
• 3.6 MENA States as Investors
• 3.7 Conclusion on the Role of the State–Business Relationship

Unit 4 FDI in the MENA Region

• 4.1 Why FDI Matters: Perspectives for the Arab World
• 4.2 Types of FDI and Theories of Internationalisation and Political Risk
• 4.3 The Historical Development of FDI in the MENA Region
• 4.4 Investment Regimes, Agency Agreements and Free Zone Companies
• 4.5 Outward FDI from the MENA Region
• 4.6 Conclusion

Unit 5 Trade in the MENA Region

• 5.1 Trade in the MENA Region
• 5.2 Theories, Trends and Institutions in Global Trade
• 5.3 Interregional and Intraregional Trade in the MENA Region
• 5.4 Trade Logistics
• 5.5 The Political Economy of Trade
• 5.6 Conclusion

Unit 6 Labour Markets in the MENA Region

• 6.1 General Features of Global and MENA Labour Markets
• 6.2 Regional Overview
• 6.3 Labour Market Governance and Industrial Relations in the MENA Region
• 6.4 Conclusion on the Role of Labour Markets in the Gulf

Unit 7 Banking and Capital Markets in the MENA Region

• 7.1 Some Stylised Facts about Banking and Capital Markets
• 7.2 Currencies, Monetary Systems and Regulation in the MENA Region
• 7.3 Banking Systems in the MENA Region
• 7.4 Some Remarks on Market Finance in the MENA Region
• 7.5 Conclusion

Unit 8 The Role of Islam in MENA Economies

• 8.1 Islam and its Provisions on Economic Life
• 8.2 Economic Features of Pre-Modern MENA Societies
• 8.3 The Concept of Islamic Economics
• 8.4 Practical Relevance of Islamic Institutions in the Economic Sphere Today
• 8.5 Conclusion

Module samples

• M489 Module Introduction (PDF)
• M489 Specimen Examination (PDF)
• M489 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules