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JOHN CABOT UNIVERSITY
COURSE CODE: "FIN 330"
COURSE NAME: "International Finance"
SEMESTER & YEAR:
Spring 2021
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SYLLABUS
INSTRUCTOR:
Alessandro Antonelli
EMAIL: [email protected]
HOURS:
MW 11:30 AM 12:45 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:
* Multinational Corporations and 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
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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.
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| International Financial Management | Jeff Madura, Roland Fox | Cengage | Last or one of the last editions | | | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Exam 1, Exam 2, Class Participation | The two exams (40% + 50%) 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. The class participation grade (10%) will reflect the students care in attending the class, and her or his active involvement and interventions during class. Unjustified absences will negatively affect the class participation grade. | 40% + 50% + 10% |
-ASSESSMENT CRITERIA:
A Work 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 cours
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.
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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
Time value of money, corporate capital structure, debt sustainability
Multinational corporations and multinational financial management, an overview
International flow of funds
International financial markets
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
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
March 15th, Monday - Exam
1 (part I, II, and III; 40% 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, 42.5% weight) See
university schedule for date/time of this final
examination.
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