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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 330 "
COURSE NAME: "International Finance "
SEMESTER & YEAR: Summer Session I 2017
SYLLABUS

INSTRUCTOR: Robert LeClair
EMAIL: [email protected]
HOURS: MTWTH 11:00 AM 12:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS:
PREREQUISITES: Prerequisite: FIN 301
OFFICE HOURS:

COURSE DESCRIPTION:
The course emphasizes the structure and analysis of international capital and financial markets, Euro-currency financing, and the financing of international transactions.
SUMMARY OF COURSE CONTENT:
A survey of the principles and concepts of international financial management.  The key financial decisions of the multinational firm will be examined and analyzed.  The course will build on and extend the valuation framework provided by domestic corporate finance to account for dimensions unique to international finance.  There will be an emphasis on taking advantage of opportunities provided in the multinational environment as well as recognizing the threats and risks in doing business abroad.
LEARNING OUTCOMES:

1. To understand the nature of business in a multinational environment.

2. To be aware of the opportunities available for the business that operates on a global scale.

3. To understand the risks and complexities of operating in different cultural and legal environments.

4. To become skilled in adapting to new environments and to dealing with international risks.

5. To learn the financial tools and techniques for controlling risk in different national environments.

TEXTBOOK:
NONE
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Weekly QuizzesFinal grades in the course will be based on a series of five weekly quizzes covering the chapters assigned for the week. Each quiz will be equally weighted at 12% of the final grade and the total weight of the quizzes will make up 60% of your overall score. The remaining 40% of the final grade will be based on the individual country report.60
Country Report  40

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:
ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY

You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed. The final exam period runs until ____________
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.
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.

SCHEDULE

Course Schedule

Week of:

Textbook Chapters

Topics

 

 

 

 

 

 

 

22 – 25 May

 

 

Chapter 1

Multinational Enterprise and Multinational Financial Management:

 

·      The nature and benefits of globalization

·      Multinationals in international competition

·      The motivation for FDI

·      Stages of corporate expansion overseas

·      Video: “Managing the Overseas Assignment”

 

 

Chapter 2

The Determination of Exchange Rates:

·      The equilibrium exchange rate

·      Factors affecting exchange rates

·      Currency appreciation and depreciation

·      Central bank intervention

 

 

 

 

Chapter 3

The International Monetary System:

·      Varying systems of exchange rate determination

·      The European Monetary System

·      European Monetary Union and the Euro

·      The gold standard

·      Video: “What in the World is a Dollar Worth?”

 

 

Chapter 4

Parity Conditions in International Finance:

·      The Law of One Price

·      The function of arbitrage

·      Real and nominal interest rates

·      Forecasting exchange rates

 

 

 

 

 

29 May – 1 June

 

 

 

 

Chapter 5

The Balance of Payments and International Economic Linkages:

·      Balance of payments accounts

·      The linkage between current and financial accounts

·      Managing a current account deficit

 

 

Chapter 6

The Foreign Exchange Market:

·      The spot and forward markets

·      Different foreign exchange quotations

·      Currency arbitrage operations

·      Using forward contracts

 

 

 

 

5- 8

June

 

Chapter 7

Currency Futures and Options Markets:

·      Forward and futures contracts

·      Currency options contracts

·      Managing currency risk

 

 

 

Chapter 9

Managing Transaction Exposure:

·      Translation vs. transaction exposure

·      Hedging transaction exposure

·      The cost of hedging techniques

·      Centralized foreign exchange risk management

 

 

 

 

 

 

 

 

 

 

 

 

12 – 15

June

 

 

 

Chapter 11

Country Risk Analysis:

·      Defining country risk

·      Social, cultural, political, and economic factors affecting country risk

·      Key indicators of country risk

 

 

 

Chapter 15

Financing Foreign Trade:

 

·      Making payments in international trade

·      Documents associated with payments

·      Costs and benefits of factoring

·      Countertrade transactions

·      Short-term overseas financing

 

 

 

 

Chapter 16

Managing the Multinational Financial System:

 

·      Transfer mechanisms used by multinational firms

·      Arbitrage opportunities available to MNCs

·      Shifting profits and funds internally

 

 

19 - 22 June

 

 

 

 

 

 

 

Investment Reports and Presentations Due