COURSE INFORMATION
Course Title: INTERNATIONAL FINANCE
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 413 B 1 3 0 0 3 7.5
Lecturer and Office Hours: Nertil Mera Thursday: 17:00 - 18:00 PM
Second Lecturer(s): NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Elective
Classroom and Meeting Time: E-313: 18:00 - 20:45 PM (Thursday)
Course Description: Introduction to exchange rate, the market for foreign currency, exchange rate regimes, international monetary system, balance of payments, prices in the open economy, financial markets in the open economy, managing operating exposure, managing transaction exposure, forward, futures and options markets, international banking, souring debt internationally, souring equity internationally.
Course Objectives: The primary objective of this course is to aid the students with the understanding of the global financial environment. Learning how to calculate exchange rates, cross rates and and how to make use and profit from discrepancies in the Forex market. It helps them comprehend global markets with all the different currency regimes and provide them with a financial management dimension of working internationally. On the other hand it enhances the research capabilities and provides a better understanding of specific topics in international finance.
COURSE OUTLINE
Week Topics
1 Review of Syllabus: Introduction to the Course
2 An overview of International Finance and International Flow of Funds (Ch: 1+2)
3 International Financial Markets (Ch: 3)
4 Exchange Rate Determination (Ch: 4)
5 International Arbitrage and Parity Conditions (Ch: 7+8) + Quiz
6 Measuring Exposure to Exchange Rate Fluctuations (Ch: 10)
7 Review for M-Term Exam
8 Midterm Exam
9 Managing Exposure (Ch: 11+12)
10 Multinational Capital Budgeting (Ch: 14)
11 *To be discussed in Research Projects: Currency Derivatives (Ch: 5)*/Forecasting Exchange Rates (Ch: 9)*/ FDI (Ch: 13)*/ Country Risk Analysis (Ch: 16)*/ Financing International Trade (Ch: 19)*
12 Presentation of Research Projects + Discussions
13 Presentation of Research Projects + Discussions
14 Presentation of Research Projects + Discussions
Prerequisite(s): NA
Textbook: Madura, J. International Financial Management, Cengage Learning 13th Edition
Other References: Makin, A. J. (2017) International Money and Finance, 1st Edition, Routledge Publishing. Gandolfo, G. and Federici, D. (2016) International Finance and Open Economy Macroeconomics, 2nd Edition, Springer Publishing. Melvin, M. and Norrbin S. C. (2013) International Money and Finance, 8th Edition, Academic Press- Elsevier Bekaert, G. and Hodrick, R. (2011) International Financial Management, 2nd Edition, The Prentice Hall Series in Finance.
Laboratory Work: NA
Computer Usage: Possible
Others: No
COURSE LEARNING OUTCOMES
1 Deepen the understanding of the global financial environment and the way funds flow across countries.
2 Demonstrate knowledge about exchange rate determination, interest rates and inflation and the role of arbitrage in the foreign exchange.
3 Apply knowledge of foreign exchange hedging and use foreign currency derivatives to identify and manage the foreign exchange risks faced by multinational firms.
4 Be able to produce a good quality research project demonstrating higher order understanding of key concepts in international finance.
5 Deliver an effective oral presentation with appropriate visuals and be able to defend and discus it with the peers.
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
MSc BAF Program
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
35
Project
1
50
Quiz
1
5
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 3 48
Mid-terms 1 14 14
Assignments 1 70 70
Final examination 0
Other 1 7.5 7.5
Total Work Load:
187.5
Total Work Load/25(h):
7.5
ECTS Credit of the Course:
7.5