Syllabus Môn Finance - Banking | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 58562220 INTERNATIONAL FINANCE
Lecturer: Vu Thuy Mai Uyen
Email: vtmuyen@hcmiu.edu.vn Office: O1.305
Office hours: Wednesday morning 9:00 AM – 11:00 AM Teaching times and locations:
¥ Lecture: Friday afternoon (1:15PM – 3:35PM) ¥ Venue: L110 Teaching assistant: TBA
1. Course Description and Purpose: Following the beginning finance course, this
course is designed to explore the principles of financial management from an
international perspective. The concept of exchange rate exposure and how to
manage foreign exchange risk are to be discussed. Emphasis is placed on corporate
finance for international firms.
2. Course Learning Objectives: This course is designed to provide a broad
introduction to the operations of international financial markets and instruments.
One of the goals of this course is to help students develop an understanding of the
workings of international financial markets, the risks of doing business in the
international arena, and most importantly, the management of exchange risk
exposure. Some of the topics covered are foreign exchange markets, foreign
exchange risk, management of exchange risk, international money and capital
markets, and capital budgeting for multinational firms (MNCs).
3. Course Learning Outcomes:
After taking the course, the student should be able to:
¥ Understand why international finance is different from purely domestic finance. ¥
Understand the function and structure of the foreign exchange market.
¥ Understand the concept of arbitrage and how arbitrage works in the foreign exchange market.
¥ Understand the concept of exchange rate exposure.
¥ Understand how to manage foreign exchange rate risks using balance sheet and derivatives hedges.
¥ Understand the risk exposure of multinational corporations when they make
investments in foreign markets
¥ Understand how multinational corporations make investments in overseas. ¥
Understand how MNCs finance their projects. lOMoAR cPSD| 58562220 4. Teaching Strategies
The learning system in this course consists of lectures and scheduled quizzes. Lectures
elaborate the appropriate theoretical content in the textbook and readings. Classes provide
a more detailed and refined analysis of both concepts and applied materials. Classes are
strongly oriented towards interactive discussion of the text and cases. In order to gain the
most from the lectures and class activities, the assigned text/reading should be read before
the lecture to participate in the discussions.
5. STUDENT RESPONSIBILITIES AND CONDUCT 5.1 Workload
It is expected that the students will spend at least six hours per week studying this course.
This time should be made up of reading, researching, working on exercises and problems,
and attending classes. In periods where they need to complete assignments or prepare for
examinations, the workload may be greater.
Over-commitment has been a cause of failure for many students. They should take the
required workload into account when planning how to balance study with part-time jobs and other activities. 5.2 Attendance
Regular and punctual attendance at lectures and seminars is expected in this course.
University regulations indicate that if students attend less than eighty per cent of scheduled
classes they may be refused from final assessment. Exemptions may only be made on medical grounds.
5.3 General Conduct and Behaviour
The students are expected to conduct themselves with consideration and respect for the
needs of the fellow students and teaching staff. Conduct which unduly disrupts or interferes
with a class, such as ringing or talking on mobile phones, is not acceptable and students
will be asked to leave the class. More information on student conduct is available at the university webpage. 5.4 Keeping informed
The students should take note of all announcements made in lectures or on the course’s
Blackboard. From time to time, the university will send important announcements to their
university e-mail addresses without providing a paper copy. The students will be deemed
to have received this information. 6. LEARNING ASSESSMENT
6.1 Formal Requirements
In order to pass this course, the students must:
¥ achieve a composite mark of at least 50; and
¥ make a satisfactory attempt at all assessment tasks (see below). lOMoAR cPSD| 58562220 6.2 Assessment Details Mid-Term Exam 30% Quizzes and Group project 30% Final Exam 40% Total 100% 6.3 Quizzes
You are taking three multiple choice quizzes during the course either in class or online (to
be announced later) at week 5, 8 and 14. Your quiz grades will be based on the two highest
quizzes out of three that you have taken.
6.4 Group presentations and report during the course:
Possible topics for the up-to-5-person group projects are listed below. At the end of the
second session, I will ask people for their topics – I will get back to them during the next
week to confirm presentation dates.
You should present your topic after the section that provides background information. The
presentation should include PowerPoint slides and last about 10 - 15 minutes, providing
background and links to issues discussed in the prior lectures. Turn in one copy (per team)
of your reflective report when you do your presentation, plus copies of your slides. List all
the team members’ names at the top via blackboard.
Grading: 5 points for background (adequate, relevant); 5 points for linkages to concepts
covered in class (appropriate, illuminating); 5 points for presentation (clear, engaging)
[1] After Section 3: Balance of payments
¥ Japan’s high level of debt/GDP
¥ Recent movements in the US, Japan, and China trade balance, with explanations
[2] After Section 4: Exchange rate regimes
¥ China’s moves to loosen controls on the Yuan
¥ Recent attempts to create an alternative to the US dollar as the world’s reserve currency
¥ Discuss Bitcoin’s prospects as a global currency
[3] After Section 5: Exchange rate markets
¥ Tobin tax on currency trading
¥ Status report for publicly traded firms that trade currencies
¥ Status and repercussions from recent lawsuits against major banks that trade
currencies for fixing rates and also misleadingly billing customers for trades. lOMoAR cPSD| 58562220
[4] After Section 6: Exchange rate determination
¥ Link between the US Federal Reserve and the falling value of India’s Rupee and Japanese Yen
¥ Update on two currencies with big recent movements – how move and why
7. ACADEMIC HONESTY AND PLAGIARISM
Plagiarism is the presentation of the thoughts or work of another as one’s own (definition
proposed by the University of Newcastle). Students are also reminded that careful time
management is an important part of study and one of the identified causes of plagiarism is
poor time management. Students should allow sufficient time for research, drafting, and
the proper referencing of sources in preparing all assessment items. The university regards
plagiarism as a form of academic misconduct and has very strict rules regarding plagiarism.1 Textbook:
1. Multinational Business Finance, David K. Eiteman, Arthur I. Stonehill, Michael H. Moffet, 14th ed.
2. International Financial Management, Jeff Madura, 14th ed., Cengage
Course Outline and Reading Assignments Week Topics Chapter Number
1 This is adapted with kind permission from the University of New South Wales. lOMoAR cPSD| 58562220 Introduction Chapter 1 (International 1
Multinational Financial Management: Opportunities and Financial Management & Challenges
Multinational Business Finance )
Chapter 2: The International Monetary System (only cover Chapter 2 (International
current exchange rate arrangement and fixed vs. flexible Financial Management) 2 exchange rate system)
Chapter 2&3 (Multinational
Chapter 3: The Balance of Payments Business Finance) Chapter 3 (International Financial Management) 3
Chapter 5: The Foreign Exchange Market Chapter 5 (Multinational Business Finance) Chapter 3 (International Financial Management) 4
Chapter 5: The Foreign Exchange Market Chapter 5 (Multinational Business Finance)
Chapter 7& 8 ( International
Chapter 6: International Parity Conditions Financial Management) 5 Quiz 1 Chapter 6 ( Multinational Business Finance)
Chapter 7& 8 ( International
Chapter 6: International Parity Conditions Financial Management) 6 Chapter 6 ( Multinational Business Finance) Chapter 5 (International Financial Management) 7
Chapter 7: Foreign Currency Derivatives and Swaps Chapter 7 (Multinational Business Finance) Chapter 5 (International Financial Management) 8
Chapter 7: Foreign Currency Derivatives and Swaps Chapter 7 (Multinational Business Finance) Mid-term exam Chapter 4 (International Financial Management) 9
Chapter 8: Foreign Exchange Rate Determination Chapter 8 (Multinational Business Finance) Chapter 11 (International 10
Chapter 9: Transaction Exposure Financial Management) Chapter 9 (Multinational Business Finance) lOMoAR cPSD| 58562220 Chapter 12 (International
Chapter 10: Translation Exposure Quiz Financial Management) 11 2 Chapter 10 (Multinational Business Finance) Chapter 12 (International Financial Management) 12
Chapter 11: Operating Exposure Chapter 10 (Multinational Business Finance) Chapter 17 (International Financial Management) 13
Chapter 12: Global Cost and Availability of Capital Chapter 12 (Multinational Business Finance) Chapter 18 (International
Chapter 13: Raising Equity and Debt Globally Financial Management) 14 Chapter 13 (Multinational Business Finance) Revision 15 Quiz 3