INTERNATIONAL FINANCE AND BANKING
Course Description
This course addresses the financial characteristics and environment of the multinational corporation. Theories of exchange rate determination and international capital mobility will be emphasized. Special attention is focused on how international risk factors and foreign securities markets affect financial decisions. International financial instruments and hedging techniques will also be discussed.
The International Finance and International Banking course provides a foundation for students' encounter with the subject of international finance. As multinational corporations (MNCs) continue to expand their operations globally they must not only be properly managed to apply their comparative advantages in foreign countries, but must also manage their exposure to many forms and sources of risk. Those MNCs that are most capable of responding to changes in the international financial environment will be rewarded. The same can be said for today's students who become the MNC managers of the future. The course International Finance and Banking combines a strong foundation in international finance theory with current, practical applications. It provides thorough, up-to-date treatment of cutting-edge international finance issues along with traditional treatment of international financial management. Real-world applications will be discussed.
Objectives and learning outcomes
- To provide students with an understanding of the unique aspects of the multinational corporation.
- Understand the main theories of exchange rate determination and use them to forecast.
- To provide students with the requisite skills in dealing with the additional risks confronting the multinational corporation.
- To develop the students’ ability to make effective decisions attendant to the financial management of the multinational corporation as applied to international banking.
Learning methods
The course is taught in English and is structured as a combination of lectures, in-class activities, case studies, and student presentations. It requires a substantial amount of preparation by the students and active involvement during class.
Quality issues
The lecturer assures a variety of teaching and testing methods. The feedback from students is always highly valued and appreciated.
The tentative readings below is from Madura. In addition, students will be assigned to a chapter from Hughes and MacDonald.
Topics:
TOPIC / READINGS(Chapter No.)
1 / Overview / 1
International Financial Markets / 3
2 / Balance of Payments and Flow of Funds / 2,
3 / Exchange Rate Determination / 4
4 / Government Intervention / 6
5 / Purchasing Power Parity (PPP) / 7,8, notes
International Fisher Effect (IFE)
6 / Midterm
Forecasting Foreign Exchange Rates (FOREX) / 9
This course outline is intended to give you an idea of the sequence of topics; however, it is subject to change at the discretion of the instructor. Some of the topics will be covered in greater detail than others and some of the material presented in class is not in the text. You must attend class to obtain the reading and problem assignments.
Course Materials:
- Madura, Jeff. International Financial Management (10th ed.) Thomson South-Western, 2010.
- Hughes, Jane and Scott MacDonald, International Banking Text and Cases, Addison Wesley, New York, 2002.
- Professor’s lecture notes
Course meets:
"International Banking & Finance" January 2013
January15 (Tuesday) - 4-6.45pm
January16 (Wednesday) - 3-5.45pm
January 17 (Thursday) - 3-5.45pm
January21 (Monday) - 9-11.45am
January22 (Tuesday) - 9-11.45am
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