Global Financial Management Unit 1 DB response to peers

Jason Heyland

Global Financial Management: FIN630

Unit 1 Discussion Board – Part 1

 

            After reading the course objectives, I would have to say that understanding and accomplishing them will support my success in management in many of ways.  The first being to get a better understanding of global finance in general.  Achieved my bachelor’s from AIU in Business Admin over 10 years ago so it has been quite a while since covering any material in the subject.  Feeling like I have a lot to learn.  I’m looking forward to learning more about the three types of exposure: transaction, economic, and translation (McGraw Hill, page 211). 

            The subject of exposure reminds me of the movie “The Big Short,” from the year 2015.  That’s when it really started making sense to me.  That’s when I fully understand exposure, and how big of a disadvantage the banks put themselves in for approving risky sub-prime loans that eventually went into default due to adjusting mortgage rates.   When the interest rates adjusted up the home owner could no longer afford to make the mortgage payment and defaulted on the loans, most losing their property back to the banks. The movie goes on to show how the federal government bailed out all the banks anyway.  It was basically about the 2008 housing market crash her in the United States.  

Understanding all of these types of risks will assist in better decision making in my career by being more well rounded in the subject of global finance.  It puts you in a better position to even be able to hold a conversation with some regarding the subject.  If your current job doesn’t require the knowledge, it’s still great to have because the whole goal is to improve yourself and your career.     

Part 2 & 3 to follow in week two…

 

References

McGraw Hill. Nineth edition (2021). International Financial Management, page 211