Seminar in International Economics/Finance
MBA program, Inter-Continental University of the Caribbean
Boulder, Colorado
September 23- October 4, 2013
Leeds School of Business Room # S130
Sousan Urroz-Korori
Website: http://spot.colorado.edu/~urrozkor
E-mail:
urrozkor@colorado.edu
October 4, 2:30-4:30 pm. Final Exam
This is an intensive seminar that requires not only your class participation but also
extensive individual time to study outside classroom. Your participation in class is
obligatory, and class discussion is part of your grade. You are required to read all the
assigned material prior to class time. The Exam is scheduled for Friday October 7th 2:004:00 pm. you need to sign-up for one of the group presentation1 on the first day of class.
Required Text book: Eun & Resnick, International Financial Management (IFM) 6th
edition, McGraw-Hill/Irwin, New York, 2012, ISBN # 978-0-07-803465-7
September 24
9:00-12:00 am.
Introduction to International Economics/Finance: The focus is in understanding the
overall picture of International Economics and its relationship with development. We
cover topics such as Financial and Economic Crisis, Capitalization and Development,
Foreign Direct Investment, Trade, The Role of international organization such as World
Trade Organization (WTO), and International Monetary Fund (IMF).
Reading material:
 Professor’s notes on the website
 Globalization and the Multinational Firm, Chapter 1, IFM, pp. 4-24
 Gain from Trade: The Theory of Comparative Advantage, IMF Appendix 1A,
pp. 27 & 28
September 24
2:00-4:30 pm.
International monetary systems, history of monetary arrangements, European monetary
system, financial crisis, causes of financial crises, exchange regimes.
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1
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Professor’s notes online
Prof. Becker2 notes on Foreign Exchange, on the website
International Monetary System, Chapter 2, IFM, pp. 29-61
You either can sign up on line or during the first day of classes.
Duke University
1
September 26
9:00-12:00
The current account, the capital account and the portfolio investment, reserve (surplus vs.
deficit), The relationship between balance of payments and national income.
Reading Material:
 Balance of Payments, Chapter 3, IFM pp. 64-79
 Appendix 3A The relationship between balance of payments and national income
accounting, page 82
 Mini case, Mexico’s Balance of Payment
 Problem 1, page 80
Market and structure of foreign exchanges, spot market, cross exchange rates, arbitrage,
forward rare, swap transactions.
Reading Material:
 The Market for Foreign Exchange, chapter 5, IFM, pp. 112-135
 Professor’s notes on Foreign Exchange Market
 Problems 1-9 page 136
October 1
2:00-4:30 pm.
International Parity Relationships and Forecasting Foreign Exchange Rate, &
Management of Transaction Exposure.
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Reading Material:
Chapter 6, pp. 139-165
Problems 1-6 pp. 166 & 167
Chapter 8, pp. 198-216
Problems 1-5, pp 217 & 218
October 3
9:00-12:00 am.
Management of Economic Exposure & Management of Transaction Exposure.
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Reading Material:
Chapter 9 pp. 227-244
Chapter 10 pp. 248-262
October 3
2:00-4:00 pm.
Problem solving period
2