CALIFORNIA STATE UNIVERSITY, SACRAMENTO
College of Business Administration
Finance 190 – Multinational Business Finance
Spring 2013
SYLLABUS
INSTRUCTOR:
OFFICE:
OFFICE HOURS:
TELEPHONE:
Email:
Dr. Gene Shlyakhov
2061 Tahoe Hall
Mondays 7:45 – 8:30am by appointment
(916) 802-8172, for emergencies only
genesh@cal.berkeley.edu
COURSE OBJECTIVES
To gain an understanding of the currency exchange rates and factors
affecting them, the international monetary system and foreign exchange
markets, as well as currency adjustments in response to changes in interest
rates, inflation and the balance of payments. Using that knowledge as a
base, to learn and apply the fundamentals of currency forecasting to
measuring and managing of exchange rate exposure. To learn the
fundamentals of financing of the international trade and short and long
term financing and investment decisions of multi-national corporations.
To attempt an analysis of the current economic and financial market
conditions based on concepts of international finance.
PREREQUISITES
The course presumes the understanding of both introductory corporate
finance, statistics and economics. The minimum pre-requisite for this
course is FIN 101, and basic economics. Please remember, this is a
finance class, and review all basic concepts of finance and statistics prior
to taking the class.
STUDY MATERIAL
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
Course Textbook: Shapiro, Alan C. Foundations of Multinational
Financial Management 6th ed. 2009, on reserve in the library
Cases: 1. Vanguard Security: International Transaction Dilemma
2. Lufthansa , 3. Baker Adhesives
(*** See note next page regarding the purchase of cases)
GRADING
Midterm examinations (2 @20% each)
40%
Final examination
30%
Cases and homework
20%
Class Attendance and Participation
10%
Make-Up Policy: There are no make-up exams or assignments
WRITTEN ASSIGNMENTS/CASES AND COURSE ETHICS
Lecture Outlines containing required readings and homework assignments,
and cases will be posted on WebCT and assigned at the appropriate time.
Homework assignments are designed to reinforce the material
covered and to enable students to monitor their own progress and
learn (including, and especially, from their mistakes). All cases and
assignments can be performed and submitted by groups of up to 4 people,
The names of all students in the group submitting the assignment must be
typewritten on the submitted paper. Assignments and cases will be
collected at the start of the class and late assignments will not be accepted.
Homework assignments will be graded on completeness, understanding of
problem, and honest effort. It may not be necessary to get a correct answer
in order to receive a good grade on the assignment. Cases will be graded
on understanding the problem(s) facing the company, depth of analysis,
validity of arguments for a particular point of view, and approach to
solving the problem(s). Students’ meaningful participation in the class is
encouraged and will be reflected in the final grade.
Only typewritten homework assignments and papers will be accepted.
Any attempt at plagiarism, copying any other student’s answers, or
copying the work of previous classes or the internet in any part of any
assignment will result in zero credit for that entire assignment.
The university’s Code of Conduct will be strictly enforced:
http://www.csus.edu/umanual/student/UMS16150.HTM
Regular and prompt attendance and class participation is expected.
Because of the breadth of the course and the continuously changing nature
of international business and politics, much of the subject matter will only
be available in the lectures. Examinations and assignments will include
material covered in lectures and class discussions that is not available in
the textbook. In the rare case that you must miss a class, you are
responsible for any material covered, handouts, and/or announcements.
Select a class partner(s) to help you with this responsibility and to
take notes.
*** To purchase the cases:
1. Open the XanEdu login page at www.xanedu.com
2. Click on the “Students” button under the login area to register as a new user.
3. Complete the registration pages.
4. Log in to XanEdu with the User ID and Password you created during registration
5. Course pack: FIN 190: Multinational Business Finance, Shlyakhov - Spring
2013 CoursePack ID: 428912
6. You can purchase your Course Pack with a credit card or check on secure site.
7. Complete the purchase for. Upon completing the purchase, you will be taken
directly to “My XanEdu” where you can access your Course Pack
8. Questions? Please contact XanEdu Customer Service at 1-800-218-5971
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Notes on the Exams:
1.
Each exam may, and will contain material related to:
a) Reading assignments from the textbook
b) Lecture notes
c) Homework Assignments
d) Cases
e) Class discussion
f) Guest speaker presentations
**Material from the current articles posted on WebCT, although not directly
tested, may be extremely helpful in gaining practical knowledge of the subject, as
well as in preparing for the exams
2.
Format of the examinations:
Closed Book. Each student will be allowed to have one page (8 1/2” by 11” – one
side) that he/she has prepared prior to the examination. You should find this
helpful since there are some mathematical equations involved. Most questions
will be multiple-choice. There will be bonus questions, each with a higher point
value than the regular questions. Bring a ScanTron Form #882, a calculator and a
#2 pencil.
General Outline of the Class
1.
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8.
Introduction
Multinational Corporation
Efficient Market Theory
Equilibrium Exchange Rates
Factors Affecting Exchange Rates
Development of International Monetary System
Balance of Payments and International Monetary Linkages
Foreign Exchange Markets, Spot and Forward Rates and Quotations
9. International Arbitrage Theory and Interest Rate Parity
10. Purchasing Power Parity and Exchange Rate Dependence on Interest Rates and
Inflation
11. Currency Futures and Options Markets
12. Currency Forecasting
13. Measuring Exposure to Exchange Rate Fluctuations
14. Managing Exchange Rate Exposure
15. Financing Foreign Trade and Operations
16. International Financial Markets
17. Corporate Strategy and Direct Foreign Investment
18. Cost of Capital in Foreign Investment Decisions (time permitting)
19. International Portfolio Investment (time permitting)
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