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JOHN CABOT UNIVERSITY
COURSE CODE: "FIN 330-2"
COURSE NAME: "International Finance"
SEMESTER & YEAR:
Spring 2017
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SYLLABUS
INSTRUCTOR:
Tobias Schuler
EMAIL: [email protected]
HOURS:
TTH 1:30 PM 2:45 PM
TOTAL NO. OF CONTACT HOURS:
45
CREDITS:
PREREQUISITES:
Prerequisite: FIN 301
OFFICE HOURS:
by appointment
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COURSE DESCRIPTION:
The course emphasizes the structure and analysis of international capital and financial markets, Euro-currency financing, and the financing of international transactions.
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SUMMARY OF COURSE CONTENT:
ü The International Financial Environment.
ü Exchange Rate Behaviour.
ü Exchange Rate Risk Management.
ü Long-Term Asset And Liability Management.
ü Short-Term Asset And Liability Management.
ü International Banking And International Finance Outlook, Main Trends
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LEARNING OUTCOMES:
By the end of this course, you will have done, or be able to:
ü Understand why firms and nations seek out and benefit from international business activities.
ü Comprehend the links between countries and the causes of the international flow of funds.
ü Understand how international money markets, international credit markets, international bond markets and international stock markets serve multinational corporations.
ü Dissect the basic factors that affect currency values and the nature of central bank intervention in foreign exchange markets.
ü Identify the key equilibrium relationships among inflation rates, interest rates and exchange rates.
ü Analyse the main techniques and the main foreign exchange and derivative markets used by multinational corporations to measure and manage their currency risks.
ü Examine the management of long-term assets and liabilities, including motives for direct foreign investment, multinational capital budgeting, country risk analysis, and capital structure decisions.
ü Examine the management of short-term assets and liabilities, including trade financing, other short-term financing, and international cash management.
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| International Financial Management (last or previous editions) | Jeff Madura, Roland Fox | Cengage Learning EMEA | 978-1-4080-7981-2 | | | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Midterm 1, Midterm 2, Final, Class Participation | The two midterms (30% + 30%) and the final exam (40%) will consist of exercise questions, graphic analysis, as well as some problems that require quantitative analysis, in which the student is asked to explain and/or solve with accuracy and clarity issues of a particular topic covered by the syllabus. The class participation will reflect the students care in attending the class, and her or his interventions during class. Unjustified absences will negatively affect the class participation grade. | 30% + 30% + 40% |
-ASSESSMENT CRITERIA:
A90-100%
B80-89%
C65-79%
D60-64%
Fbelow 60%
-ATTENDANCE REQUIREMENTS:
The University attendance policy is described in the catalogue. Persistent absence or tardiness usually precludes satisfactory performance in the course. Students are expected to arrive to class on time and are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present in class.
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ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic
dishonesty will receive a failing grade on the work in which the dishonesty occurred.
In addition, acts of academic dishonesty, irrespective of the weight of the assignment,
may result in the student receiving a failing grade in the course. Instances of
academic dishonesty will be reported to the Dean of Academic Affairs. A student
who is reported twice for academic dishonesty is subject to summary dismissal from
the University. In such a case, the Academic Council will then make a recommendation
to the President, who will make the final decision.
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STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap.
Students with approved accommodations must inform their professors at the beginning
of the term. Please see the website for the complete policy.
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SCHEDULE
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PART I - THE
INTERNATIONAL FINANCIAL ENVIRONMENT
Multinational financial management, an overview
International flow of funds
International financial market
Exchange rate determination
Currency derivatives
PART II – EXCHANGE RATE BEHAVIOUR
Exchange rate history and the role of government
International arbitrage and interest rate parity
Relationship among inflation, interest rates, and exchange rates
Program review exam 1
Midterm 1 (PART I, and II; 30% weight)
PART III – EXCHANGE RATE RISK MANAGEMENT
Forecasting exchange rates
Measuring exposure to exchange rate fluctuations
Managing transaction exposure
Managing economic exposure and translation exposure;
PART IV - LONG-TERM ASSET AND LIABILITY MANAGEMENT
Foreign direct investment
Multinational capital budgeting
Country risk analysis
Long-term financing
Program review exam 2
Midterm 2 (PART III, and IV; 30% weight)
PART V - SHORT-TERM ASSET AND LIABILITY MANAGEMENT
Financing international trade
Short-term financing
International cash management
Optional: Case studies and class discussion - International banking and
international finance outlook, main trends
Final Exam (PART I, II, III, IV AND V, 40% weight) See
university schedule for date/time of this final
examination.
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