CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO
Department of Accounting and Finance
International Bus. Finance
Prof. M. T. Vaziri
Office: JB: 554
Phone: 537-3228
Office Hours:
MW 4-6 P.M
& By appointment
SYLLABUS
TEXTS
INTERNATIONAL FINANCIAL MANAGEMENTN, JEFF MADURA, LATEST EDITION, WEST PUBLICATION
COMPANY
ESSENTIAL OF MULTINATIONAL FINANC: PRACTICAL APPROACH, M.T VAZIRI, SECOND EDITION,
COMMERCE EXTÉRIEUR PUBLICATION MARSEILLE, FRANCE
REFERENCES AND MAJOR ARTICLES
1.
Aggarral, Ray. "Financial Policies for the Multinational Company." New York: Praeger, 1976.
2.
The Literature of International Business Finance, A Bibliography. New York: Praeger, 1984.
3.
Bergendaht-Coran. "Review of International Financial Management." Stockholm: P.A. Norstedt &
Source, 1987.
4.
Ferger, George and Bertrand Yachquillat. "International Finance, Text and Cases." Boston: Allyn &
Back, 1987.
5.
Gay, Gerald D. and Robert W. Kalb. "International Finance: Concepts and Issues." Richmond, VA:
Robert F. Dane, 1983.
6.
George, Abraham and Ian H. Giddy. International finance Handbook, Vols. 1,2. New York: Wiley, 1983.
7.
Lessard, Donald R. "International Financial Management, Theory and Application." New York: Wiley,
1985.
8.
Levi, Maruice. "International Finance: Financial Management and the International economic." New
York: McGraw-Hill, 1983.
DIRECTORIES OF MULTINATIONAL FIRMS
1.
American Expert Registor, New York,: Thomas International Publishing Annual.
2.
Angel, Yurenall, "Directory of American Firms Operating in Foreign Countries".
3.
International Directory of Corporate Affiliation Subtitled "Who Owns Whom Worldwide, The Family Tree
of Major Corporations of the World," Skokie, Ill: National Register Publishing Company.
PURPOSE OF THE COURSE
This is an undergraduate finance course in which we will apply The body of knowledge to identify, analyze and
make decisions concerning business problems that have international financial implications.
COURSE OBJECTIVE
To reinforce certain international financial principles and concepts, and to examine business experiences in order to
provide the student with an opportunity to apply international theory and analytical techniques to real world
problems Emphasis will be placed on the analysis of various decision alternatives within the framework of riskreturn trade-off and value of the firm. Further, the course is designed to offer students an opportunity to
communicate orally and writing financial information.
INSTRUCTIONAL METHODS
Teaching will take the form of lectures, class discussion, group activities, experimental exercises, case analysis or
other procedures which might enhance the learning process for this course.
ADMINISTRATION OF THE COURSE
1.
2.
-3.
Attendance for presentation and group discussion is highly recommended.
A research project is required. (See the attached note on criteria for writing a research paper). Topic
selection and approval will begin during the second week of the quarter. This progress report is due on the
date of the mid-term examination, and the final draft is due on the date of the final examination.
Examinations will be prepared from material covered in class. Students are expected to be prepared to
discuss the material covered in class and to participate in group discussion.
STUDENT RESPONSIBILITIES AND EVALUATION
The student is responsible for following the reading outline in the required texts. Outside reading for this course is
essential. Every student is urged to read regularly in current international finance or business journals on theories,
issues, problems, or practices related to the management of the decision process. The student should be ready to
participate intelligently in class discussions and group activities. Incomplete grades and make-up exams will be
arranged according to university and SBPA Policy.
EXAMINATIONS
The mid-term and final examination will be limited to the material specified on the assignment sheet and material
covered in class. Each examination will be two hours in length.
GRADING
Mid-term Examination
Final Examination
Special Project
Class Participation
35%
35%
20%
10%
Total
100%
Grade distribution is normal: A=above 95,A-=90-95,B+=86-89,B=84-85,B-=80-83,c+=76-79,c=74-75,c-=7073,D+=66-69,D=64-65,D-=60-63,F=below 60
COURSE OUTLINE
CLASS
CHAPTER
TOPIC
1
1
Multinational Financial Management (An Overview)
2
1
Multinational Financial Management (An Overview)
3
2
International Monetary System
4
2
International Monetary System
5
3
International Flow of fund (Balance of Payments)
6
3
Same
7
4
Foreign Exchange Market
8
5
Foreign Currency Derivatives
9
6
Parity Conditions and Currency Forecasting
10
23
International Trade Finance
11
-
MID-TERM EXAMINATION/TERM
PROJECT PROGRESS REPORT
12
14
Interest Rate and Currency Swap
13
18
Multinational Capital Budgeting
14
15
Foreign Direct Investment and Strategy
15
20
International Portfolio Theory and Diversification
16
11
Global Cost and Availability Capital
17
22
Working Capital Management
18
22
Working Capital Management
19
-
Case study PRESENTATION
20
-
Case study PRESENTATION
RESEARCH PAPER
Format of the Research Proposal
The research proposal will consist of three parts--a formal essay, a tentative outline of the paper, and a preliminary
bibliography. Regarding the content of your formal essay, please note that PAPERS WILL NOT BE ACCEPTED,
IF THE RESEARCH PROPOSAL HAS NOT BEEN SUBMITTED AND APPROVED.
Perhaps you should start your effort by developing a thesis sentence. It will at least be a benchmark against which
to judge the direction of your research. It could later be developed into a major hypothesis or a series of questions
which are central to your study. Note well: 1) the thesis sentence can be revised, it is not set in concrete; 2) while a
thesis sentence can be revised, too frequent revision of a paper's thesis may result in "spinning of wheels".
Do not waste time in drafting an intricate outline of the paper's structure. Remember that an outline is a tool to aid
you in your work. It is intended to provide order, proportion, and parallelism within the final paper. For this reason,
you may wish to draft your outline from major headings down. However, at this point the research process, it is a
tentative outline which will help you 1) to specify the limits of your paper and 2) to aid you in determining the
actual topics to which you need to devote the limited time available for your research.
It is true that the conventional outline is only one way to organize your materials and thoughts in preparation to draft
in the actual paper. This call for a outline is simply a way to standardize this portion of the assignment, to see how
you are doing, and to have an opportunity to offer suggestions (re: e.g., foreseeable research difficulties, additional
or alternate research questions, and whether the proposal is overly or insufficiently ambitious).
Compiling a bibliography may seem pointless at the start of research, but the exercise should indicate to you
whether or not there is material sufficient for an acceptable paper.
RECOMMENDED FORMAT FOR RESEARCH PAPER
There must be an introduction and a concluding section, each of which are clearly marked. There are excellent
reasons for this practice: many busy persons, especially executives and officials, will first read the introduction
(perhaps only the introductory paragraph) to see if the paper might be of interest and, if so, skip to the conclusions to
see if they seem reasonable; if the paper passes these tests, the official may then decide to read the body to see how
the argument is developed.
In regards to the use of other main subdivisions within the paper, although they are encouraged, the decision is left
to the writer. Experience indicates that it is very hard to keep a paper over ten pages in length well organized
without internal subdivisions (Internal subdivisions also help in maintaining organization and in making transitions
in shorter papers).
The introduction should cover the following points:
1. The subject of the paper-stated as explicitly as possible.
2. Thesis sentence, central questions of the study, or major hypotheses to be tested.
3. Why anyone should be interested in the answer to the questions or in the validity of the hypotheses (probably the
most difficult part of the paper).
4. How the answers are developed--data, methodology, concepts.
5. Qualifications to and limitations of the paper.
This introduction frames the discussion in the concluding section of the paper; that is, did you accomplish what you
set out to do?
NOTES:
1. This format can be applied to the writing of journal articles as well as research papers.
2.
The above format for the introduction can be used for a research/thesis/dissertation proposal. In large part,
such a proposal is merely a preliminary draft of the paper's introduction. To such a paper, one could add (if
required) an outline of the paper's major subdivisions (or chapters) and a preliminary bibliography.
CRITERIA FOR EVALUATING PAPERS
Papers will be evaluated on the following five criteria:
1. Clear thesis or point of view ("focus"):
Problem to be addressed is clarified at the outset (e.g., thesis sentence), including the limits of the topic being
discussed. Paper should come to a clear conclusion.
2. Logical development of argument:
Logical connection exists between argument made, evidence presented, and conclusions drawn. Appropriate use is
made of evidence in building toward a clear conclusion. Meanings of central concepts are clear.
3. Presentation and relevance of evidence:
Facts and data are presented clearly and succinctly with sources indicated in an appropriate way (footnotes,
endnotes, etc.). Distinction between conclusive evidence and supporting illustrations is acknowledged when
appropriate. Counter arguments and/or contrary evidence are acknowledged and refuted within the limits of space.
4. Clear and readable writing style:
Sentences and paragraphs organized in a clear, logical order. Absence of awkward or unclear sentences and phrases.
At least some attempt at interesting turns of phrase and perhaps even eloquence (of less importance than above two
criteria).
5. Absence of mechanical flaws and errors ("mechanics"):
Grammar, punctuation and spelling. Consistent format, conformation to standard footnote/endnote form.
Proofreading (absence of uncorrected errors).