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
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Etleva Gjonça egjonca@epoka.edu.al , Dr. Etleva Gjonça by appointment
Second Course 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
Study program: (the study for which this course is offered)	Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time:	E-313: 8:45 PM - 11:30 AM (Tuesday)
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
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. Learning how to calculate exchange rates, cross exchange 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.

BASIC CONCEPTS OF THE COURSE

1	Multinational Corporations (MNCs) are defined as firms that engage in some form of international business.
2	Balance of payments is a summary of transactions between domestic and foreign residents for a specific country.
3	Foreign Direct Investment (FDI) is the purchase of assets to establish financial control for a foreign entity.
4	An exchange rate represents the price of a currency, or the rate at which one currency can be exchanged for another.
5	A fixed exchange rate regime is a regime in which the values of currencies are kept pegged relative to one currency so that exchange rates are fixed.
6	In a freely floating exchange rate system, exchange rate values are determined by market forces without the intervention of the government.
7	A pegged exchange rate regime is a regime in which the home currency value is pegged to one foreign currency or to an index of currencies
8	Arbitrage can be defined as capitalizing on a discrepancy in quoted prices by making a risk-less profit.
9	Purchasing power parity (PPP) theory attempts to quantify the relationship between inflation and the exchange rate.
10	Country risk is the potentially adverse impact of a country’s environment on an MNC’s cash flows.

COURSE OUTLINE

Week	Topics
1	Review of the Syllabus: Introduction to the Course
2	Multinational Financial Management: An Overview: Managing the MNC, Why MNCs Pursue International Business, Methods to Conduct International Business
3	International Flow of Funds: Balance of Payments, Growth in International Trade, Agencies affecting Financial Flows
4	International Financial Markets: Foreign Exchange Markets, International Money Markets, International Credit Markets
5	Exchange Rate Determination: Measuring Exchange Rate Movements, Exchange Rate Equilibrium, Factors that Influence Exchange Rates
6	Government Influence on Exchange Rates: Fixed Exchange Rate System, A single European Currency, Direct and Indirect Intervention
7	International Arbitrage & Interest Rate Parity : Locational Arbitrage, Triangular Arbitrage
8	Review for the Midterm Exam
9	Midterm Exam
10	Relationships among Inflation, Interest Rates and Exchange Rates: Purchasing Power Parity
11	Direct Foreign Investment: Motives for Direct Foreign Investment, Benefits of International Diversification
12	International Corporate Governance and Control: International Corporate Governance, International Corporate Control, Factors Affecting Target Valuation
13	Country Risk Analysis: Country Risk Characteristics, Measuring Country Risk
14	Review for the Final Exam

Prerequisite(s):	NA
Textbook(s):	Madura, J. International Financial Management, Cengage Learning 13th Edition
Additional Literature:	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.
Bachelor in Banking and Finance (3 years) Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	4
2	They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	4
3	They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.	3
4	They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.	4
5	They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.	3
6	They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.	5
7	They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.	5
8	They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.	4
9	They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.	5
10	They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	40
Final Exam	1	50
Other	1	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:			6

CONCLUDING REMARKS BY THE COURSE LECTURER

Students are expected to have gained a comprehensive understanding of the global financial environment. Meanwhile, students are expected to adhere to the ethical code of conduct of the EPOKA University.