College of Business (UUM COB)
UNIVERSITI UTARA MALAYSIA
COURSE SYLLABUS
COURSE :
INTERNATIONAL FINANCE
CODE :
BWFFK3043
Synopsis
The course starts with an introduction to the unique aspects of international financial management, and briefly describes
the evolution of the international monetary system, and the present international financial markets. Following this, it
examines in-depth the foreign exchange market. Then, it looks at the factors that influence exchange rates. Next, the
course introduces currency derivatives (futures and options), and explores their use for speculation. Later, the international
parity conditions, or theories, that underpin exchange rates are explained. Subsequently, the course examines the
measuring and managing of the three types of foreign exchange exposure. Afterwards, the key components of corporate
finance, more specifically, cost of capital and capital structure, capital budgeting analysis, as well as working capital
(particularly, cash) management, are reviewed from the perspective of a multinational company. Finally, the course ends
with an overview of international trade finance.
Course Learning Outcomes
Upon completion of the course, students are able to
1
Explain explain international financial management, international financial markets, exchange rates, foreign exchange risks,
and international trade finance issues and strategies. (A3)
2
analyse problems of currency arbitrage, speculation, and managing foreign exchange risks (C4)
3
weigh the complexities for a multinational company in making financing, investment, and working capital decisions (C5)
Tranferable Skills (if applicable)
Knowledge and Understanding (LOC1), Numeracy Skills (LOC3e), Leadership, Autonomy and Responsibility (LOC3f)
Teaching Method
LECTUREF2F-PHYSICAL, TUTORIALF2F-PHYSICAL, OTHERSF2F-PHYSICAL,
OTHERSNF2F-OL-(ASYNCHRONOUS),
Topic Content
Topic
1) Introduction
Course Learning
Outcome (CLO)
Total Learning
Time
1
3
1,2
12
1
3
1,2
12
1,2
6
1,2
12
2
6
2
3
3
6
3
12
1.1)International financial management
1.2)International monetary system
1.3)International financial markets
2) Foreign exchange market
2.1)Features
2.2)Terms & definitions
2.3)Arbitrage & speculation
3) Currency value & influencing factors
3.1)Currency valuation
3.2)Factors influencing currency value
4) International parity conditions
4.1)Interest rate parity
4.2)Purchasing power parity
4.3)Fisher effect
4.4)International Fisher effect
4.5)Forward rate parity
5) Currency derivatives
5.1)Currency futures
5.2)Currency options
6) Transaction exposure
6.1)Types of currency exposure
6.2)Measuring transaction exposure
6.3)Managing transaction exposure
7) Economic exposure
7.1)Measuring economic exposure
7.2)Managing economic exposure
8) Translation exposure
8.1)Translation & measurement
8.2)Translation exposure relevance
8.3)Translation exposure management
9) MNC capital cost & structure
9.1)Country capital cost
9.2)MNC capital cost
9.3)MNC capital structure
9.4)Foreign subsidiary capital structure
10) MNC capital budgeting
10.1)Parent vs. project perspectives
10.2)Foreign project evaluation
10.3)Risk assessment
11) MNC working capital management
3
6
1
3
11.1)Complexities for MNCs
11.2)Cash management
11.3)Financing
12) International trade finance
12.1)Trade process
12.2)Payment methods
12.3)Documents
12.4)Financing
Assessment
Assessment type
CLO
Weightage
FINAL ASSESSMENT
1
40.00
Group Assignments
3
20.00
Individual Assignment
2
20.00
Mid Term Exam
1
10.00
Quiz
1
10.00
Total Weightage
100.00
References
1
Eitemann, D. K., Stonehill, A. I., and Moffett, M. H. (2016). Multinational Business Finance (14) ,Harlow,Essex:Pearson
2
Madura, J. (2012). International Corporate Finance (11th ed.) ,Australia:South-Western
3
Cheol Eun and Bruce Resnick and Tuugi Chuluun (2021). Cheol Eun and Bruce Resnick and Tuugi Chuluun (9th) ,New
York:McGraw HillRetrieved from
https://www.mheducation.com/highered/product/international-financial-management-eun-resnick/M9781260013870.
html