INTERNATIONAL FINANCE
FIN 3604
Syllabus - SPRING 2013
INSTRUCTOR: Todd M. Shank, PhD
OFFICE:
102A Pianoman (PNM)
OFFICE PHONE
FAX:
EMAIL:
CLASSROOM
TIME
727.873.4291
tshank@mail.usf.edu
STG 110 (2 PM: 601) OR
DAV 250 (6PM: 691)
Tuesdays, 2PM-4:50PM
Tuesdays, 6:00-8:50PM
OFFICE HOURS:
MONDAY:
TUESDAY:
WEDNESDAY:
THURSDAY:
FRIDAY:
12pm-2pm and
5pm-5:30pm
Or by appointment
Course Prerequisite:
Students must have completed FIN 3403 with a grade of “C-“or better (a C- is
required for College of Business core courses)
Course Description:
PR: ECO 2013 and FIN 3403. Study of factors affecting international business,
assessment of risks, international managerial finance; institutions and instruments of
international business finance.
Course Objectives:
1. Identify the theories of international business and describe how they are applied in
running a multinational corporation.
2. Examine the operation of international financial asset markets and the role of market
participants in these global markets
3. Define how foreign exchange rates are determined and compare/contrast the methods of
managing exchange rate risk
4. Use major print and online sources of information relating to international financial
transactions as a basis for analyzing the risk/return characteristics of multinational firms
5. Analyze the impact of direct foreign investment by multi-national firms, how foreign
trade is financed, and the resulting international diversification benefits
6. Explore the role that corporate social responsibility and ethics plays in international
corporate finance.
Required Text:International Financial Management, 11th Edition, by Jeff Madura,
Thomson-Southwestern Publishing Co. (ISBN13#: 978-0-538-482967)
Note: If cost is an issue, you may use: International Financial Management, 10th
Edition, by Jeff Madura (ISBN-10: 0-538-482214).
Available: Study Guide for Madura’s International Financial Management (any edition)
Recommended: Wall Street Journal (cost is about two dollars a week for the Student
Edition). Sign up sheets are available from the Instructor.
DETERMINATION OF FINAL GRADE:
2 Exams at 100 points each 200
Semester Project
100
TOTAL POSSIBLE POINTS 300
GRADING SCALE BASED ON TOTAL POINTS EARNED:
A: 270-300
B: 240-269
C: 210-239
D: 180-209
F: < 180
Course Policies:
[1] EXAMS:
There will be two, in-class, non-comprehensive exams given during the semester
which will consist primarily of 50 multiple choice questions related to the solving of
quantitative problems, course concepts and theories, and any assigned readings from the
Wall Street Journal (WSJ) and the Economist. These exams will cover the lectures, all
assigned chapters in the text, readings, and all class discussions of current topics. NO
MAKEUP EXAMS WILL BE GIVEN. If a student misses an exam, the weight of the
missed exam will be added to that of the final exam. Students missing an exam will take a
modified final exam of the same length that includes material from that of the missed exam.
Any student that intends to miss the mid-term exam must notify the instructor 24
hours prior to the day the exam is scheduled.
For each exam, you will be allowed to bring on 4X6 index card containing only
equations or formulae. Any person violating the card’s content restrictions will receive a
grade of zero for the exam.
[2] SEMESTER PROJECT:
The purpose of your semester project is to apply course concepts covered during the
term in making multinational financial decisions about a hypothetical U.S. firm doing
business in a foreign country. You will take on the role of the owner/manager of this small
multinational business. You will examine trends in economic and financial conditions over
the course of the term and analyze how these trends will affect your business and its
profitability. A summary statement should also include your personal insights gathered
about the international environment by reading the popular financial press (WSJ, Barrons,
Forbes, Fortune, Business Week) during the term. Students should complete the project
following carefully the “SEMESTER PROJECT INSTRUCTIONS” handout (the
instructions are also on the course Blackboard site under “Semester Project Instructions”).
You will be required to complete this project with a partner of your choosing (one of your
fellow classmates), OR on your own. Please inform me by January 22, 2012 who your
project partner will be.
The project is worth the equivalent of one exam (100 points) and will be due by the end of
class on April 9.
[3] ATTENDANCE AND PARTICIPATION:
Students are also expected to read assigned chapters and readings BEFORE coming
to class on the day that they are assigned so that they are prepared to discuss the material in
class. You will also find that developing solutions to the "Questions and Applications" at
the end of each chapter will help not only in your preparation for class, but also in your
preparation for exams (the solutions to each of these are available on the course Blackboard
website: under “SOLUTIONS TO CHAPTER QUESTIONS”. If you find that you do not
understand any of the material or need help, please feel free to stop by my office so that I
can help you or answer any questions.
Weekly class attendance and preparation for class is expected. This makes your
participation in class discussions easier and also makes for a more interesting class meeting.
Attendance will be taken at each class meeting and your participation will be
periodically noted. I reserve the right to use your participation and attendance in deciding if
your final grade will be curved at the end of the semester. Any student missing MORE
THAN TWO classes during the semester will not have their final grade curved. In other
words, non-attendance will not be punished, but attendance will be rewarded.
[4] PROFESSIONAL BEHAVIOR:
Professional behavior is expected at all times. During our class meetings, all cell
phones, pagers, and electronic devices must be turned off or muted. Laptops may be
used only for taking notes. Disruptive behaviors will not be tolerated and include
excessive talking, using your laptop for surfing the internet during class time, and
continuously arriving late/leaving early. A warning will be given for the first offense.
Students may be expelled from a course for continued disruptive behavior (see USF
website: www.ugs.usf.edu/catalogs/0304/adadap.htm under “Academic Dishonesty and
Disruption of Academic Process”.
[5] TENTATIVE COURSE OUTLINE:
JAN 8
Course Overview
Syllabus and Semester Project
Special Topics Discussion: Careers in Finance
JAN 15
Chapter 1 (Multinational Financial Management) and
Chapter 2 (International Flow of Funds)
JAN 22
Finish Discussion of Chapter 2 and
Chapter 3 (International Financial Markets)
JAN 29
Finish discussion of Chapter 3 and Appendix 3 (Investing in International
Financial Markets)
Special Topics Discussion: PBS’s “Mind Over Money” and the Global
Financial Crisis
FEB 5
Chapter 4 (Exchange Rate Determination)
FEB 12
Chapter 5 (Currency Derivatives)
FEB 19
Chapter 6 (Government Influence on Exchange Rates) and
Appendix 6 (Government Intervention During the Asian Crisis)
FEB 26
Chapter 7 (International Arbitrage and Interest Rate Parity)
Catch up and Review for Mid-Term Exam
MAR 5
MID TERM EXAM:
(CHAPTERS 1-7 AND ANY ASSIGNED READINGS)
MAR 12
NO CLASS: SPRING BREAK (Work on your semester Project!!!)
MAR 19
NO ON-CAMPUS CLASS TODAY: View Video Lecture Online (in
Blackboard) for Chapter 8 (Relationships Among Inflation, Interest Rates,
and Exchange Rates) : There will be an extra quiz on Chapter 8 on 3/26/13.
MAR 23
Course Withdrawal Deadline
MAR 26
Chapter 9 (Forecasting Exchange Rates) and
Chapter 10 (Measuring Exposure to Exchange Rate Fluctuations)
APR 2
Finish Discussion of Chapter 10 and
Chapter 11 (Managing Transaction Exposure) and
APR 9
SEMESTER PROJECT DUE TODAY
Chapter 12 (Managing Economic Exposure and Translation Exposure)
APR 16
Chapter 13 (Direct Foreign Investment) and Special Topics Discussion:
“Trillion Dollar Bet: A Case Study of the LTCM Hedge Fund Collapse”
APR 23
Chapter 16 (Country Risk Analysis)
APR 30
FINAL EXAM: (CHAPTERS 8-13, 16, AND ANY READINGS)
*** The individual chapters above are found in your text and the readings (when assigned)
will be in the form of either class handouts or material found in Wall Street Journal
articles.
Key Leadership Skill(s) and Perspectives Addressed in This Course:
Interpersonal
and
Communication
Skills
Analytical and
Critical
Thinking Skills
Information
Technology
Skills
4
5
3
Reflective
Thinking
and
Experiential
Learning
4
Ethical and
Social
Consciousness
Multicultural
Competence
4
5
INTERPERSONAL AND COMMUNICATION: An integral part of being finance
professional is being able to understand and communicate the results of financial analysis.
The semester project in this course allows you to practice this vital skill by researching,
analyzing, and summarizing financial market information obtained from the Internet and
business periodicals.
ANALYTICAL AND CRITICAL THINKING: Learning about international finance
requires a great deal of financial problem solving. Many of the quantitative techniques and
financial theories used by corporate finance professionals will be covered in this course.
Examples include forecasting exchange rates in Chapter 9, Measuring exposure to exchange
rate fluctuations in Chapter 10, and measuring country risk in Chapter 16.
INFORMATION TECHNOLOGY: The use of Excel spreadsheets will be used illustrate
the financial models of many theories covered in the course. Examples of the use of
spreadsheets to illustrate text material for each chapter can be found on the student disk that
accompanies the text. In addition, spreadsheets may often be used in solving End-ofChapter problems in the Questions and Applications section in your text. Lastly, The
semester project requires a great deal of obtaining and analyzing real time information from
the Web.
REFLECTIVE THINKING AND EXPERIENTIAL LEARNING: The focus of the
course will be the practice of financial management in a multinational corporation. The
Real Time Web Semester Project allows you to directly apply the theories and concepts we
are covering in class in making decisions for your small firm.
ETHICAL AND SOCIAL CONSCIOUSNESS: Ethical dilemmas that exist for financial
managers will be discussed periodically in class, especially those dilemmas that commonly
arise in doing business in other nations.
MULTICULTURAL COMPETENCE: We will discuss the similarities and differences in
financial regulations and practices among various countries and regions of the world
throughout the semester as well as discussing several outside readings on topics related to
international finance. The entire focus of the course is how the financial management of a
domestic business changes when it begins to buy from, and/or sell to, foreign businesses.
UNIVERSITY POLICIES AND INFORMATION
Academic Dishonesty:
Academic dishonesty will not be tolerated and includes, but is not necessarily
limited to the following: [1] Copying another student’s work on an exam, [2] using
unauthorized materials during an exam (e.g. cheat sheets, open books), [3] Copying
another student’s outside assignments, and [4] Failure to give proper credit to another
individual’s ideas or published works.
Because of the University’s commitment to academic integrity, plagiarism or
cheating on course work or on examinations will result in penalties that may include a
grade of “F” for the specific exam or course work and a grade of “F” or “FF” for the
course. Any incident of academic dishonesty will be reported to the dean of the college.
Definitions and punishment guidelines for Plagiarism, Cheating, and Student Disruption
of the Academic Process may be found at the USF website: (Academic Dishonesty and
Disruption of Academic Process) www.ugs.usf.edu/catalogs/0304/adadap.htm.
Students with Disabilities:
Please notify your instructor during the first two weeks of class if you have a
learning disability or require special assistance with this course. Confidential personal
and learning assistance counseling are made available to students through the Division of
Student Affairs. Contact R. Barry McDowell (mcdowell@stpt.usf.edu) for more
information.
Religious Holidays:
Students who must miss an examination due to a religious holiday should notify
the instructor during the first two weeks of class.