FINA 470-BB: International Finance
Winter Semester, 2024
Time:
Wednesday 5:45 pm – 8:15 pm
Place:
SGW MB-3.435
Instructor:
Kun H. Kim
Office:
MB-12.317
Telephone:
(514)848-2424 ext.2298
E-Mail:
kunho.kim@concordia.ca
Office Hours:
Tuesday 2:00-3:00 pm or by appointment
Teaching Assistant (TA):
TBA
TA Office Hours:
TBA
Required Textbook:
Multinational Financial Management, 11th Edition,
by Alan Shapiro and Paul Hanouna
Prerequisite:
FINA 385, FINA 395
FINA 470 is a three-credit course introduces students to the essentials of international
financial management. After a brief introduction to the international monetary system, we
study the organization of the foreign currency and international financial markets. The course
then discusses the determinants of exchange rates, followed by a discussion of the risks that
businesses operating in international markets face due to changing exchange rates and financial
turmoil in international financial markets. The subsequent sections of the course are devoted
to understanding techniques and strategies for managing different types of exchange risks.
The specific topics of the course include: determination of exchange rates, international
monetary systems, parity conditions: purchasing power parity, the Fisher effect, interest rate
parity, etc, foreign exchange risk analysis, risk management, financing multinational corporations, and foreign investment analysis and so on. The basic theory will be introduced whenever
necessary, but the main focus will be placed on how to apply the theory to better understand
relevant empirical cases.
There will be several homework assignments throughout the course. The homework assignments will NOT be collected for grading although the solutions will be provided for reference.
Instead, the assignment questions will be used for “in-class” exams. There will be a mid-term
exam (during class time) and a final. There will be NO make-up exams in this class.
If you miss a mid-term with a valid excuse (you must talk to me at least one day before the
exam), its weight will be shifted to the final exam. The relative weighting is: attendance
10%, mid-term 40% and final 50%.
Course Schedule:
Part 1. International Financial Management
1.1. Introduction: Shapiro, CH 1.
1.2. Determination of Exchange Rates: Shapiro, CH 2.
1.3. International Monetary System: Shapiro, CH 3.
1.4. Parity Conditions: Shapiro, CH 4.
1.5. Foreign Exchange Market: Shapiro, CH 6.
Part 2. Foreign Exchange Risk Management
2.1. Measuring/Managing Translation and Transaction Exposure: Shapiro, CH 9.
2.2. Measuring/Managing Economic Exposure: Shapiro, CH 10.
Part 3. International Capital Marekts and Portfolio Management
3.1. International Portfolio Management: Shapiro, CH 13.
3.2. Country Risk Analysis: Shapiro, CH 14.
3.3. Cost of Capital for Foreign Investments: Shapiro, CH 15.
3.4. Capital Budgeting for the Multinational Corporation: Shapiro, CH 17.
Homework Assignments:
The assignments are based on the class materials and designed to help students follow them
more efficiently:
ˆ Assignment 1: Assigned on Jan. 31
ˆ Assignment 2: Assigned on Feb. 14
ˆ Assignment 3: Assigned on Mar. 20
ˆ Assignment 4: Assigned on Apr. 3
Important Dates for Winter Semester 2024
ˆ January 17th, First day of class
ˆ February 28th, Reading Day (No Class)
ˆ March 6th, Mid-term Exam
ˆ April 10th, Class ends
ˆ Final Exam: TBA
Letter Grade
A+
A
AB+
B
BC+
C
CD+
D
DF
Score Range
90% - 100%
85% - 89%
80% - 84%
77% - 79%
73% - 76%
70% - 72%
67% - 69%
63% - 66%
60% - 62%
57% - 59%
53% - 56%
50% - 52%
0% - 49%
Grades:
Letter grades are assigned based on the above table. Final grades will be rounded to the
nearest integer. For example, numbers less than 81.5% will be rounded to 81%, numbers greater
than or equal to 81.5% will be rounded to 82%. D- is the minimum requirement to pass the
course.