COURSE INFORMATION Course Title: MULTINATIONAL FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 306	B	6	3	0	0	3	6

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Nertil Mera
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Classroom and Meeting Time:	E-214 A: 09:30 - 12:15 PM
Course Description:	In this course we will explore the characteristics of international financial markets and multinational enterprises to evaluate the associated risks and benefits involved in operating globally. In this course we will address the distinct risk exposures multinationals face (as opposed to purely domestic firms), the available financial tools they use to address them, their capital budgeting, their tax and working capital management, their capital structure, their investment decisions, and the specificity of their valuation. We will further look into the perspective of the international investor – what is the cost and benefit of international portfolio diversification, and what are the available instruments (currency swaps, futures and options, etc) to conduct diversification.
Course Objectives:	The primary objective of this course is to aid the students with the understanding of the global financial environment. To help them comprehend global markets with all the different currency regimes and provide them with a financial management dimension of working internationally. In particular it will enable students to understand the theory and practice of foreign currency, inflation and interest rate risk management, international financing and investment.

COURSE OUTLINE

Week	Topics
1	Review of Syllabus: Introduction to the course
2	Multinational Financial Management: An overview
3	International Flow of Funds
4	International Financial Markets
5	Exchange Rate Determination
6	Review and Quiz
7	Midterm Exam
8	Currency Derivatives
9	International Arbitrage and Interest Rate Parity
10	Relation among Inflation, Interest Rates and Exchange Rates
11	Forecasting Exchange Rates
12	Measuring Exposure to Exchange Rate Fluctuations
13	Handout of Projects (comments)
14	Review for Final Exam

Prerequisite(s):
Textbook:	Madura, J. International Financial Management, 12th Edition, Cengage Learning
Other References:	Madura, J. (2018) International Financial Management, 13th Edition, Cengage Learning ]--------[ Gandolfo, G. and Federici, D. (2016) International Finance and Open Economy Macroeconomics, 2nd Edition, Springer Publishing
Laboratory Work:	-
Computer Usage:	Possible
Others:	No

COURSE LEARNING OUTCOMES

1	To understand the global financial environment and the effects of globalization
2	To understand how the international monetary system works
3	To understand the balance of payments and its role.
4	To analyze different foreign exchange rate systems and the determination of the exchange rates.
5	To understand cross exchange rates, arbitrage and how to gain from discrepancies in exchange rates.
6	To understand the foreign currency derivatives and the foreign exchange exposure

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the finance and banking.	5
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	5
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	3
7	They have necessary banking and finance skills that needed in private and public sector.	4
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	5
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	5
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	25
Project	1	15
Quiz	1	5
Final Exam	1	45
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	2	32
Mid-terms	1	10	10
Assignments	1	15	15
Final examination	1	15	15
Other	1	5	5
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			6