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HA HU02 - International Finance

Faculty
Halil Kiymaz, Rollins College

Course Coordinator
ISUP Secretariat

Prerequisite/progression of the course

This course presumes that students have knowledge of basic economics, and financial management concepts and tools. Students should have had at least one course in finance and economics.

Course content, structure and teaching

The primary objective of the course is to introduce you concepts of international finance with special emphasis to corporate finance and risk management. The following concepts will be addressed in this course: Essential institutional aspects of the international financial markets; foreign exchange markets, exchange rate determination, and international parities; measure and management of multinational firm’s exposure to economic and financial risks by applying risk management tools (i.e. Financial Futures, Forwards, Options and Swaps); financing and foreign investment decisions by managements including raising capital and investing internationally.

The course's development of personal competences

Learning Objectives:

  1. Review and expand your knowledge and understanding of international financial system and environment.
  2. Provide an understanding of the financial and investment decisions facing a multinational business firm with a special emphasis toward exploring international opportunities and managing the risk faced
  3. Provide the knowledge of best business practices in the area of international finance
  4. Understand and employ the fundamental quantitative techniques of international finance including parity conditions
  5. Understand and integrate the concepts from international accounting, economics, international business whenever possible
  6. Incorporate global thinking into financial decision making by realizing that an international orientation has become a business necessity and even managers of domestic firms must view business from a global perspective
  7. Improvement on the following competencies:
    • Problem Solving
    • Critical Thinking
    • Active Learning
    • Search and obtain financial information internationally
    • Work Ethic
    • Teamwork
    • Communication (written/oral)
Learning Objectives

Group Case Analysis and Presentations: Group case presentations are required. Cases will be distributed on a first come first serve basis. You are also required to participate in the discussion following the case presentations.

Foreign Exchange Market Simulation Game: The foreign exchange market simulation game is in class group exercise. The purpose is to provide a simple and effective vehicle for learning the institutional operation and market dynamics of the foreign exchange markets.

WSJ/BW Article Discussion and Participation: I will be providing articles chosen from WSJ for class discussion. You are required to read each article and answer the questions at the end, if any. Your participation in class discussion is essential. Do not hesitate to ask any questions or voice your opinion regarding the articles or any othe subject matter. In-class discussion will always be treated in a professional, non-treatening manner. In the absence of active participation, I will call on students. Active participation is defined to include both questions and comments. Futhermore, attendance at all scheduled classes is expected.

Teaching methods

Methodology: This course mostly consists of cases and discussions. However, I will be briefly lecturing to deliver the subject material for each chapter. Lectures will be conducted on the assumption that students have read and at least partially understood the assigned reading materials.

What You Might Expect: As a student in this class, you may expect a clear presentation of the subject, fair grading of your work, and treatment with courtesy and respect.

What is Expected of You: As your professor, I expect that you will (a) read the assigned readings and cases prior to coming to class, (b) attend class regularly, participate in class discussion, and ask questions to help to clarify points on which you are uncertain, and (c) recognize that the most important determinants of your performance in the course are the time and effort you put in.

Examination

Final exam: 4-hour written exam (closed book). Question types may include multiple choice, T/F, problem solving essays, and mini-cases. Materials for which the student is responsible include text, lecture and assigned homework problems.

Exam aids: One page formula sheet and Excel.

Re-take exam: 24-hour written exam.

Recommended literature
  • Multinational Business Finance, David K. Eiteman, Arthur I. Stonehill, and Michael H. Moffett, 11th Edition, Addison-Wesley Publishing, 2007.
  • Course Pack (Harvard Publishing On-line)

ARTICLES:

CASES: (Harvard Online Publishing)

  • Hedging Currency Risks at AIFS
  • Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures
  • Foreign Exchange Hedging Strategies at General Motors: Competitive Exposures
  • Globalization the Cost of Capital and Capital Budgeting at AES
  • Nestle and Alcon—The Value of Listing

Last updated by ISUP Secretariat 29/01/2010