DEPARTMENT OF INTERNATIONAL BUSINESS
COURSE TITLE:
COURSE
NUMBER:
The International Financial Environment
BADM 2201
Section 10 and Section 12
SEMESTER:
Spring 2013 [first half of semester]
LOCATION:
Duques 152
COURSE
DESCRIPTION:
This course is a fast-paced survey of concepts and current issues in
international trade and finance. It discusses and analyzes the international
economic and financial environments within which businesses operate.
The topics covered include the theory of international trade, commercial
policy, the balance of payments, the foreign exchange market, the basic
international parity conditions, and current issues in international trade and
finance. The objective of the course is to provide a foundation for students
in assessing international economic and financial developments as they
affect corporate business activity.
PREREQUISITE:
Econ 1011-1012 Principles of Economics
PROFESSOR:
Reid W. Click
Associate Professor of International Business and International Affairs
OFFICE:
Funger Hall 401P
Telephone: (202) 994-0656
FAX: (202) 994-7422
E-Mail: rclick@gwu.edu
OFFICE HOURS:
Tuesdays, 4:00-6:00
and by appointment
1
COURSE
MATERIALS:
The textbook for the course is: Thomas A. Pugel, International Economics,
fifteenth edition, McGraw-Hill/Irwin, 2012. This is available at
amazon.com and other online venders.
In the GW bookstore, there is a printed and bound selection of chapters
from Pugel’s International Economics containing only the chapters that we
will use in the course.
In case you prefer an electronic book instead of the printed and bound
selection in the GW bookstore, you may purchase the e-book in three
simple steps:
1. Go to http://create.mcgraw-hill.com/shop/
2. Search for and select book by Title, ISBN, Author, or State/School.
ISBN: 9781121747296
Title: BADM 2201 The International Financial Environment
3. Add the book to your cart and pay using a credit card or access code.
You also need to read a business newspaper such as The Wall Street Journal
or The Financial Times to keep up with current international business
events. The electronic version of The Financial Times is available free to
students on campus. However, The Wall Street Journal offers more depth
to coverage.
To subscribe to the electronic version of The Financial Times, you can
create an account by going to http://www.ft.com from within the university
network, and you will see a message regarding the university subscription.
If the message does not pop up, click on “Subscribe” in the upper right
corner and this should take you to the message. Click on “Sign up” and
follow the instructions on how to create a login and password using your
GWU email address.
A subscription to The Wall Street Journal is affordable with student prices
and includes three formats: the print copy, the online version at wsj.com,
and the mobile reader for a smartphone app. The print version will be
delivered six days per week (Monday through Saturday). Basic information
on student subscriptions is available at http://WSJstudent.com.
If you are interested in a subscription for 15 weeks ($29.95), or for a full
year ($99.95), the specific link is:
https://buy.wsj.com/shopandbuy/order/subscribe.jsp?trackCode=aaajb2oo
There will also be occasional handouts posted on Blackboard at
blackboard.gwu.edu.
2
EVALUATION:
In accordance with University regulations, each student will receive a grade
of A, B, C, D, or F (with + or - as appropriate). Grades will be based on two
exams and class performance, according to the following point scale (and
weights):
EXAM I
EXAM II
CLASS PERFORMANCE
TOTAL
100 points
100 points
25 points
225 POINTS
44.4%
44.4%
11.1%
99.9%
The exams will cover material contained in the lectures, class discussions,
and assigned readings (including handouts). Make-up exams for missed
exams will be given only in extreme emergencies, so you must plan to take
the exams at the stated dates and times.
Class performance will be based on attendance, contribution to class
discussions, and responses to questions asked in class.
For both exams and class discussions, you must keep up with current events
in international business finance by reading The Wall Street Journal or The
Financial Times.
3
SCHEDULE OF CLASSES
SESSION DATE
Tuesday,
1
January 15
Thursday,
2
January 17
Tuesday,
3
January 22
Thursday,
4
January 24
5
Tuesday,
January 29
6
Thursday,
January 31
Tuesday,
February 5
Thursday,
February 7
Tuesday,
February 12
Thursday,
February 14
7
8
9
10
11
12
13
14
15
TOPIC
Introduction and Overview
ASSIGNMENT
Chapter 1
Partial Equilibrium Analysis of
International Trade
General Equilibrium Analysis of
International Trade
Commercial Policies: Tariffs
Chapter 2
Problems 3, 4, 8, 11
Chapter 3
Problems 4, 7, 8
Chapters 8, pp.
143-156
Problems 3, 4, 5
Commercial Policies: Nontariff Barriers Chapter 9, pp.
165-178
Problems 3, 7
Balance of Payments: Definition and
Chapter 16
Basic Structure
Problems 1, 5, 7, 8, 10
Balance of Payments: Concepts and
Chapter 16
Policies
(continued)
EXAM I
The Foreign Exchange Market
Interest Rate Parity
Tuesday,
February 19
Thursday,
February 21
Purchasing Power Parity
Tuesday,
February 26
Thursday,
February 28
Tuesday,
March 5
International Lending
Exchange Rate Regimes
International Capital Flows
EXAM II
4
Chapter 17
Problems 8, 9, 10
Chapter 18
Problems 3, 4, 6, 7, 8,
9
Chapter 19
Problems 2, 5, 9, 11
Chapter 20, pp.
473-489
Problems 6, 7
Chapter 21
Problem 5
Chapter 21
(continued)