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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 330 "
COURSE NAME: "International Finance "
SEMESTER & YEAR: Fall 2017
SYLLABUS

INSTRUCTOR: Alessandro Antonelli
EMAIL: [email protected]
HOURS: MW 8:30-9:45 AM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS:
PREREQUISITES: Prerequisite: FIN 301
OFFICE HOURS: by appointment

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:
-  The International Financial Environment.
-  Exchange Rate Behaviour.
-  Exchange Rate Risk Management.
-  Long-Term Asset And Liability Management.
-  Short-Term Asset And Liability Management.
-  International Banking And International Finance Outlook, Main Trends
LEARNING OUTCOMES:
By the end of this course, you will have done, or be able to:
-  Understand why firms and nations seek out and benefit  from international business activities.
-  Comprehend  the links between countries and the causes of the international flow of funds.
-   Understand   how international money markets, international credit markets, international bond markets and international stock markets serve multinational corporations.
-  Dissect the basic factors that affect currency values and the nature of central bank intervention in foreign exchange markets.
-  Identify the key equilibrium relationships among inflation rates, interest  rates and exchange rates.
-  Analyse the main techniques and the main foreign exchange and derivative markets used by multinational corporations to measure and manage their currency risks.
-  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.
-  Examine the management of short-term assets and liabilities, including trade financing, other short-term financing, and international cash management.
-  Familiarize with high quality networks of information, delivering business and financial news, insight and information around the world.
TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
International Financial Management (last or previous editions)Jeff Madura, Roland FoxEngage Learning Emea9781408088456 International Financial Management (last or previous editions) Jeff Madur, Roland Fox Cengage Learning EMEA 9781408088456
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1, Exam 2, Class Exercises, Class Presentation, Class ParticipationThe two exams (30% + 40%) will consist of essay-type 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. EXERCISES - Class exercises will be assigned by the professor (overall weight: 10%). PRESENTATION - Students should be prepared to offer an effective oral and written summary of a case assigned by the professor, and illustrate the key facts to the class, and to present their views regarding the possible questions (overall weight: 10%). CLASS PARTICIPATION - The class participation grade (10%) will reflect the students care in attending actively the class. Unjustified absences and unauthorized use of computers will negatively affect the class participation grade.30% + 40% + 10% + 10% + 10%

-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.
B This 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.
C This is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
D This 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.
F This 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:
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.
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

PART I - THE INTERNATIONAL FINANCIAL ENVIRONMENT

Multinational corporations and 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

Monday September 25, Class exercises (compulsory; 10% 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; 
 

Program review exam 1

 Monday October 9, Exam  1 (part I, II, and III; 30% weight)


PART IV - LONG-TERM ASSET AND LIABILITY MANAGEMENT

Foreign direct investment

Multinational capital budgeting

Country risk analysis

Long-term financing

PART V - SHORT-TERM ASSET AND LIABILITY MANAGEMENT

Financing international  trade

Short-term  financing

International cash management

Case studies and class discussion: International  banking and international  finance outlook, main  trends

Program review exam 2

  Exam 2 : (PART IV AND V, 40% weight) See  university  schedule for date/time of  this  final examination.