JOHN CABOT UNIVERSITY COURSE CODE: "FIN 330" COURSE NAME: "International Finance" SEMESTER & YEAR: Fall Semester 2012

SYLLABUS INSTRUCTOR: Antonelli Alessandro EMAIL: [email protected] HOURS: MW 13:30-14:45 TOTAL NO. OF CONTACT HOURS: 45 CREDITS: PREREQUISITES: Prerequisite: FIN 301 OFFICE HOURS: 12:45-13.30 and by appointment

COURSE DESCRIPTION: This course is designed to give students a wide and sound conceptual framework for analysing key financial decisions that are appropriate for multinational firms. It focuses on the study of corporate policies in the fields of risk management, investment and financing, being planned and being conducted under different political, government and market constraints, and in different currency denominations. The course also gives students the opportunity to examine a broad variety of examples, mini-case studies and special reports, related to decisions by multinational firms and showing the use of financial concepts, theories and practices to assess the contemporary global financial environment, identify threats and opportunities, execute strategies, measure and manage corporate governance and exposure to risk.

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.

TEXTBOOK: Book Title Author Publisher ISBN number Library Call Number Comments Format Local Bookstore Online Purchase International Financial Management Jeff Madura and Roland Fox South-Western Cengage Learning 9781408032299

REQUIRED RESERVED READING: NONE RECOMMENDED RESERVED READING: Book Title Author Publisher ISBN number Library Call Number Comments Handouts and additional abstracts will be provided during the course. . . .

GRADING POLICY -ASSESSMENT METHODS: Assignment Guidelines Weight a) Exam 1; b) Exam 2 c) Exam 3; d) Presentation; e) Class participation Three exams, 80% as follows: first exam 20%; second exam 20%; third exam 40%. These exams 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. Case presentation (8%): the presentation of a case will be assigned by the professor to each student. Students should be prepared to offer an effective oral and written summary of the case and the key facts to the class, and to present their views regarding the possible questions. Class participation (12%): the class participation grade will reflect the student&rsquo;s attention in attending the class, her or his ability to follow the flow of class discussion, and her or his interventions during class. Unjustified absences will negatively affect the class participation grade <br /> a) 20%; b) 20%; c) 40%; d) 8%; e) 12% -ASSESSMENT CRITERIA:  At the end of the term, students with 95-100 points will receive an A; 90-94 an A-. An “A” grade is reserved for students who consistently submit outstanding work. 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 course.  Students who receive 87-89 points will receive a B+; 84-86 a B; 80-83 a B-. A “B” grade is reserved for students who show a highly competent level of performance, and whose work does not suffer from any major errors or omissions.  Students who receive 77-79 points will receive a C+; 74-76 a C; 70-73 a C-. A “C” grade is reserved for students who show an acceptable level of performance, with answers that are clear but limited, with some minor omissions and inaccuracies but no major errors.  Students who receive 67-69 points will receive a D+; 64-66 a D; 60-63 a D-. A “D” grade is reserved to below average students whose work will typically lack a coherent grasp of the problems and issues raised in the question, omit important information, include irrelevant points and generally be too brief or even incomplete.  Students who receive fewer than 60 points will fail. -ATTENDANCE REQUIREMENTS: The University attendance policy is described in the catalogue. Persistent absence or tardiness usually precludes satisfactory performance in the course, and jeopardizes that part of the grade that is based on class presentation and participation. Students are expected to arrive to class on time; students are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present in class. Please refer to the university catalog for the attendance and absence policy.

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

________________________________________                              SCHEDULE ________________________________________ PART I - THE INTERNATIONAL FINANCIAL ENVIRONMENT 9/3/2012 Chapter 1, Multinational financial management, an overview 9/5//2012 Chapter 2, International flow of funds 9/10/2012 Chapter 2, International flow of funds, cont. 9/12/2012 Chapter 3, International financial markets 9/17/2012 Chapter 3, International financial markets, cont. 9/19/2012 Chapter 4, Exchange rate determination 9/24/2012 Chapter 5, Currency derivatives 9/26/2012 Chapter 5, Currency derivatives, cont. 10/1/2012 Case studies and exercises 10/3/2012 Exam 1 (Part I: Ch 1, 2, 3, 4, 5) PART II – EXCHANGE RATE BEHAVIOUR 10/8/2012 Chapter 6, Exchange rate history and the role of government 10/10/2012 Chapter 7, International arbitrage and interest rate parity 10/15/2012 Chapter 8, Relationship among inflation, interest rates, and exchange rates PART III – EXCHANGE RATE RISK MANAGEMENT 10/17/2012 Chapter 9, Forecasting exchange rates 10/22/2012 Chapters 10, Measuring exposure to exchange rate fluctuations 10/24/2012 Chapter 11 , Managing transaction exposure 10/29/2012 Chapter 12, Managing economic exposure and translation exposure                    Program review exam 2 10/31/2012 Exam 2 (Part II and III: Ch 6, 7, 8, 9, 10, 11, 12) PART IV - LONG-TERM ASSET AND LIABILITY MANAGEMENT 11/5/2012 Chapter 13, Foreign direct investment 11/7/2012 Chapter 14, Multinational capital budgeting 11/12/2012 Chapter 14, Multinational capital budgeting, cont. 11/14/2012 Chapter 15, Country risk analysis 11/19/2012 Chapter 16, Long-term financing PART V - SHORT-TERM ASSET AND LIABILITY MANAGEMENT 11/21/2012  Chapter 17, Financing international trade                      Chapter 18, Short-term financing 11/26/2012  Chapter 19, International cash management  11/28/2012  Conference, Celebrating JCU 40th Anniversary, Confcommercio Headquarter (Piazza Belli 2)                      Exploring How Legality and Modernity should Shape New Models of Sustainable Growth 12/3/2012    Case studies and class discussion:                     International banking and international finance outlook, main trends 12/5/2012    Program review exam 3 Exam 3 (Part IV and V: Ch 13, 14, 15, 16, 17, 18, 19): See university schedule for date/time of this final examination.