University of Scranton

                                             The Arthur J. Kania School of Management

                                                      Economics/Finance Department

 

 

 

COURSE NUMBER: Fin 475 - 1                             SEMESTER: Spring 2002

COURSE TITLE:  International Finance         OFFICE: Brennan Hall 310                  OFFICE HOURS:     

INSTRUCTOR: Dr. John Kallianiotis             T-Th: 10:00 - 2:00 P.M. and

5:30 - 6:30  and by appointment  

TELEPHONE: 941-7577 or 941-4048                                                                                E-mail: jnk353@uofs.edu                               

 

 

REQUIRED TEXT:   International Financial Management, Sixth Edition, by Jeff Madura, South Western College Publishing Company, New York, 2000.

 

DESCRIPTION OF COURSE:

 

This course deals with the environment of International Financial Management, the Foreign Exchange Risk Management, the Multinational Working Capital Management, the International Financial Markets and Instruments, the Foreign Investment Analysis, and the Management of Ongoing Operations.  It also exposes students to a wide range of issues, concepts, and techniques pertaining to International Finance.

 

OBJECTIVES:  The major objectives of the course are:

 

1.         to familiarize the students with these realities. Particular emphasis on the International Financial Environment, The Exchange Rate Behavior, The exchange Rate Risk Management, The Short-Term Asset and Liability Management, Long-Term Asset and Liability Management, and the International Banking environment.

 

2.         to master a topic on a specific area of International Finance through reading

and research.   

 

3.         to learn empirical research techniques by using data and computers.

 

                                                                                                                                                           

 

 

 

 

 

 

    TOPICS                                                                                          Classroom Hours                                                                                                                               

1.                  The International Financial                             10   

Environment

1.  Multinational Financial Management:

     An overview

2.  International Flow of Funds

3.  International Financial Markets

4.  Exchange Rate Determination

5.  Currency Derivatives

 

II   Exchange Rate Behavior                         6   

6.  Government Influence on Exchange Rates

7.  International Arbitrage and Interest            

     Rate Parity

8.  Relationships between Inflation, 

    Interest Rates, and Exchange Rates

 

III  Exchange Rate Risk Management                       4     

       9.  Forecasting Exchange Rates

10  .Measuring Exposure to Exchange

       Rate Fluctuations

11  .Managing Transaction Exposure

12.  Managing Economic Exposure 

 

IV   Long-Term Asset and Liability                       4   

Management

13.   Direct Foreign Investment

14.   Multinational Capital Budgeting

15.   Multinational Restructuring

 

16.  Country Risk analysis

17.   Multinational Capital Structure

         and the Cost of Capital 

18..  Long-Term Financing

 

V    Short-Term Asset and Liability                       4   

Management

19.   Financing International Trade

20.   Short-Term Financing

21   International Cash Management

 

 

 

 

 

VI.  The International Banking Environment                    6   

22.  International Banking

23.  The International Debt Crisis

1.              European Union

1.              Global Strategic Planning

 

CLASS MEETING:  The class meets for 28 sessions of

 1 hour 15 min duration, plus a final examination.

 

TEACHING METHODS AND ASSIGNED READINGS:

 

This course is designed to give to the students a global view on Financial Management and on world's Financial Markets and Institutions.  Economics are open and Markets are interdependent today.  Students must understand the World's Economy through lectures, classroom discussions and a group project.  A small reading assignment will be put in Reserve Library.  There will be three exams (25% each) and your assignments together with your attendance, class participation and performance will count for 25% of the course. 

(First Exam: February 26, second exam: April 9, paper outline due on March 5,  first draft on April 30, and Final paper and  its class presentation will be during the last week of  the semester 5/6 - 5/10/2002).

 

The Grading scale is the following:

 

96-100  A     76-79     C+

92-95     A-        72-75     C

88-91     B+        68-71     C-       

84-87     B         64-67     D+

80-83     B-        60-63     D

0-59 F

 

The course will also give students the opportunity to master a topic and do some empirical research by working and exchanging ideas and information within a group together with their fellow students and me. Also, a few homework assignments will be given to the students during the term at the end of every section of the course.  We plan to cover one chapter per lecture.  Class sessions will be devoted to lecture and discussion.  Students are expected to participate in the class discussions.  The students will be exposed to a wide range of issues, concepts, statistical and econometric techniques, data, statistical programs.. (EViews, TSP) and information sources related to International Finance.  Attendance and class participation is necessary and count for the course grade.  Students cannot miss more than two weeks during the semester.     

 

 

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