UNIVERSITY OF WYOMING
COLLEGE OF BUSINESS
DEPARTMENT OF ECONOMICS & FINANCE
ECON 4740 – INTERNATIONAL FINANCE
T TH 2:45 – 4:00 P.M., AG 1032
FALL 2005
Instructor:
Office:
Contacts:
Office Hours:
Anne Alexander
Ross Hall 240
Office phone 766-4856, email aalex@uwyo.edu;
Department phone 766-6813
Tuesday and Thursday, 10:00 – 11:30 a.m. or by
appointment
Class Homepage:
http://uwacadweb.uwyo.edu/RGodby/annesclasses.htm
Then click on ECON 4740 - International Finance
Required Textbook:
International Money and Finance, by C. Paul Hallwood
and Ronald MacDonald, 3rd Edition (Blackwell
Publishing, 2000, reprinted 2001, 2002, and 2003)
Course Prerequisites:
Course Description:
You must have had ECON 1010 and ECON 1020 in
order to take this course. If you have not had one or
both of these courses, you will be administratively
dropped from this class.
This class focuses is on foreign exchange markets,
balance of payments analysis, and the effects of
international trade and capital flows on the domestic
economy. Policies to correct payment deficits, gold,
international liquidity and international financial
institutions are studied.
Course Goals: We will discuss international finance emphasizing the role of
international financial institutions in the global financial system. Our emphasis
will be on understanding and analyzing: (1) exchange rate determination; (2)
international financial instruments; (3) balance of payments analysis; (4) the
various international financial institutions, including sovereign, private, and
international institutions; (5) types of exchange rate regimes, (6) capital crisis and
contagion; and, time permitting, (7) the role of national laws on international
finance, especially illicit financial activities.
Learning Objectives: By completing the requirements of this course, students
will be able to:
(1) Analyze the roles of commercial, sovereign, and international financial
institutions, as well as sovereign governments and private firms, in the global
financial system.
(2) Explain the primary international monetary arrangements, including their
evolution to the present time.
(3) Explain and analyze the workings of an open economy, including
international investment, capital flows, and balance of payments accounts.
(4) Analyze and explain the economic mechanics of foreign exchange, exchange
rate determination, and international financial mechanisms and instruments.
(5) Analyze and explain various types of exchange rate regimes and their
impacts on trade and capital flows..
(3) Explain and analyze the sources and outcomes of illicit financial activities,
including terrorist and organized criminal financing.
Class Homepage:
 Please check the class website at least once a week. It includes
important announcements, readings and other assignments, and updates.
It also includes links to resources that you’ll find useful for this class, such
as the IMF website and media sources.
 The tentative schedule for the class is posted to the website, as is an
announcements links that is updated regularly. Print out the schedule so
you have an idea of when assignments and exams will be, and make sure
you check the announcements regularly. The schedule is subject to
change, and it is your responsibility to obtain and keep track of changes
in the schedule.
Course Requirements and Grade Determination:
You will earn your grade in this course by successfully completing the following:

Short In-Class Problems – these are designed to help you synthesize and
understand course content. They are not announced in advance, and
cannot be made up unless you have a University-authorized excuse.
These are essentially short problems that you will analyze during the last
15-20 minutes of class. Your average grade on these will determine 10%
of your final grade.

Problem Sets – there will be 4 assignments given over the course of the
semester. Each problem set will ask you to analyze and apply concepts
learned in the class, and should take you approximately 5-10 hours to
complete. These must be done by each individual student – you may
work with your fellow students in discussing the problem set, but you MAY
NOT turn in collaborative work. Each student must turn in their own work
in their own words, or they will be penalized AT LEAST TWO LETTER
GRADES. Your average grade on the problem sets will determine 15% of
your final grade. .

Briefing Paper – there will be one briefing paper that you will write this
semester. You will write it on a topic in current international financial
issues. Details on this paper will be provided separately. The paper will
be around 5 pages long and will be due before Thanksgiving. You may be
asked to do a short presentation on the paper in class, as well.

Examinations – there will be two midterm examinations and one
cumulative final examination. Each midterm is worth 20% of your final
grade. The final examination is worth 25% of your final grade.
You will earn your final grade according to the following:
In-Class Problem Average: 10% of final grade
Problem Set Average: 15% of final grade
Briefing Paper: 10% of final grade
Midterm Examination #1: 20% of final grade
Midterm Examination #2: 20% of final grade
Final Examination: 25% of final grade
Letter grades are determined by: 90-100% = A, 80-89.99% = B, 70-79.99% = C,
60-69.99% = D, below 60% = F. it is my sole discretion as to if and when I may
“round up” anyone’s grade at the end of the semester, and I cannot be lobbied on
this decision. Don’t even try!
Final Examination Time and Policy:
According to the Fall 2005 Class Schedule, the final examination in this class
will be held Thursday, December 15, from 3:30-5:30 p.m. This date and time
is NOT NEGOTIABLE - University policy specified in the University
Regulations strictly prohibits changing this time and date, so make note of
this time-block on your calendar now, and make your travel and other plans
accordingly.. There are only two exceptions to this University of Wyoming
policy: if you (1) have another exam scheduled at that time and on that date, or
(2) have more than two exams on that day, you may request an alternate exam
time by notifying the Office of the Registrar. Otherwise, all finals will be given at
the time listed above.
Attendance: You are expected to attend every single class. If you miss class,
you are responsible for learning the material and getting all materials from class
on your own. A missed class may also mean you miss an in-class problem,
which cannot be made up and which count 10% towards your final grade.
Academic Dishonesty: Academic dishonesty will not be tolerated in this course,
and violators will be disciplined to the fullest extent of University Regulations. Any
case of academic dishonesty will be prosecuted in accordance with UNIREG 802
Rev. 2. Academic dishonesty can result in a permanent "F" in this course, a
permanent notice of academic dishonesty in your student citizenship file, or
suspension from the University. Behavior that is academically dishonest
includes, but isn’t limited to:
 unapproved use of notes, books, electronic devices on exams
 attempting to or actually reading off of another person’s exam
 allowing another person to read off of your exam
 representing another person’s work - including a fellow student, an author
of a website, etc. and ANYONE WHO IS NOT YOU – as your own
 allowing another to represent your work as theirs.
If you are academically dishonest on any assignment or exam in this class, you
will receive a ZERO on that work, and that WILL that will count in your final
grade. If you are academically dishonest two or more times in any context in this
course, the smallest sanction you will receive is a permanent "F" in this
course.
NOTE: The College of Business employs anti-plagiarism software that detects
academic dishonesty in any and all electronic documents. I also employ a device called
“my brain” that pretty quickly detects it in hand-written work. Trust me, your profs aren’t
so busy that we don’t notice when your work is eerily similar to another students’ or a
professional’s work. You will not get away with academic dishonesty in this class – I
guarantee it.
Classroom Deportment and Decorum: According to the Student Code of
Conduct and University Regulations, students have responsibilities as well as
rights in the classroom. Your obligation is to deport yourself in this classroom so
as to uphold a nurturing academic atmosphere. This includes:
(1)
Treat each other, and me, with respect. Conduct yourself in a civil
manner at all times in this classroom. We don’t have to be boring and
lifeless in class, but please remember to be respectful of others.
(2)
Turn off all electronic devices in the classroom, unless you have
expressed permission from me for them to be on. This includes cells,
PDA’s, music devices, and computers.
(3)
Do not talk amongst yourselves unless it is called for in class. If you
display disruptive classroom behavior, I have the right to have you
removed from my class.
(4)
Do not use wireless mice or other wireless utility devices in this
classroom unless you have expressed permission from me.
Disclaimer: All of the above information is subject to change when deemed
necessary by the instructor. Students will be notified verbally in class or via
postings on the class homepage if such changes occur.