COURSE INFORMATION Course Title: INTERNATIONAL FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 413	A	1	3	0	0	3	7.5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	Dr. Nertil Mera nmera@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Fatbardha Morina fmorina@epoka.edu.al , Tuesday, 11:30-13:00: or email for appointments
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Master of Science in Banking and Finance
Classroom and Meeting Time:	E 211: Tuesday, 18:00-20:45
Teaching Assistant(s) and Office Hours:	NA
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75%
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 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 Syllabus: Introduction to the Course
2	Ch1 -- Multinational Financial Management: An Overview: Managing the MNC, Why MNCs Pursue International Business, Methods to Conduct International Business &Ch2 -- International Flow of Funds: Balance of Payments, Growth in International Trade, Agencies affecting Financial Flows (Pg 1-62)
3	Ch3 -- International Financial Markets: Foreign Exchange Markets, International Money Markets, International Credit Markets (Pg 63-102)
4	Ch4 -- Exchange Rate Determination: Measuring Exchange Rate Movements, Exchange Rate Equilibrium, Factors that Influence Exchange Rates (Pg 103-129))
5	Ch7 & Ch8 -- International Arbitrage & Parity Conditions: International Arbitrage, Interest Rate Parity, Purchasing Power Parity ( Pg 227-294)
6	Ch10: Measuring Exposure to Exchange Rate Fluctuations Relevance of Exchange Rate Risk (Pg 325-354)
7	Review before Midterm Exam
8	Midterm Exam
9	Ch11 & Ch12-- Managing Transaction Exposure. Managing Economic Exposure and Translation Exposure (Pg 355-414)
10	Ch14: Multinational Capital Budgeting (Pg 437-476)
11	Workshop on Research Projects & Ch16 -- Country Risk Analysis: Country Risk Characteristics, Measuring Country Risk
12	Presentation of Research Projects + Discussions
13	Presentation of Research Projects + Discussions
14	Presentation of Research Projects + Discussions

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.
Master of Science in Banking and Finance 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.
2	They develop a broader understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.
3	They are able to apply advanced valuation models to estimate the price of different financial assets as well as evaluate multinational business firms.
4	They are able to apply different investment techniques and form portfolios that would generate higher returns by decreasing the unsystematic risk level.
5	They have advanced knowledge of the regulatory framework and functioning of the banking system, international banking, central banking and the conduct of monetary policy.
6	They are able to conduct advanced financial analysis and use the results in the decision-making process of business firms.
7	They are able to understand and use advanced economic theories and tools to solve economic problems in banking and financial services industry.
8	They have the ability to utilize accounting, financial and economic data as well as other information to solve complex and unstructured business problems by using advanced econometric and statistical models.
9	They develop their ability to think critically, do advanced and independent research, analyze, interpret results, draw conclusions, and communicate effectively, both individually and as part of a team.
10	They are provided with opportunities to acquire the necessary skills and competencies to move on to further study within the discipline.

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	35
Quiz	2	2.5
Term Paper	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:			7.5

CONCLUDING REMARKS BY THE COURSE LECTURER