NORTH SOUTH UNIVERSITY
School of Business
FIN 444 – INTERNATIONAL FINANCIAL MANAGEMENT
Instructor
: Mirza M. Ferdous (MzF)
Office
Office Hours
: NAC 972
: MW 11.00 AM – 1:00 PM & 4.30 PM – 6:30 PM
ST 4.30 PM – 6:30 PM (OR by appointment only)
Email : MirzaMFerdous@gmail.com
MFerdous@northsouth.edu
Tel
: 01720666222
Required Texts:

Jeff Madura, INTERNATIONAL FINANCIAL MANAGEMENT, 9th edition, Thomson/South-Western
publication.

Shapiro A.C, MULTINATIONAL FINANCIAL MANAGEMENT, International edition, Prentice-Hall
publication.
Course Description:
Welcome to FIN-444. This course is designed to provide students with a detailed understanding of the
fundamentals of managerial and corporate finance and the proper tools and techniques of financial
management as it relates to multinational corporations. The course deals with financial mathematics, the
environment of international finance, and financial planning and analysis for global business. Additionally,
the course discusses the decision framework that is needed by financial managers to understand foreign
exchange risk and cash management, investments, financing and dividend decisions. The course also
discusses modern theories and practices of international financial management (IFM). The overview of
international financial management is further reinforced through student projects, assignments, and case
studies.
Course Objective:

Identify the main goal of the MNC & potential conflicts with that goal.

Describe the key theories that justify international business.

Understand how foreign exchange market operates.

Explain the relationship between interest rates, inflation rates & exchange rates.

Focus on the techniques that can be used to hedge the foreign exchange risk.

Illustrate how the international capital budgeting decisions are made.
 Highlights the methods of financing international operations.
Course Outline:

Lectures - Every lecture will have a chapter reference in your textbook. Additional lecture materials
will be provided through handouts and web-references. You MUST take notes in class.

Assignments - Students will need internet access to complete certain take home assignments.
Assignments will mostly involve case studies discussed in class. Certain assignments may be
followed by in-class multimedia presentations.

Project - There will be a group project for this class. The project will include a group presentation. I
will discuss the specific guidelines for the project and presentation in class. The project submission
date will be announced in class.

Exams - The lecture-quiz schedule will be announced in class. Please refer to the course schedule
for additional exam information.
Assessment & Grading
Students will be graded according to the standard NSU grading policy.
Distribution of Marks
Class performance
5%
Attendance
5%
Assignments
10%
Quizzes
10%
Group Project
10%
Presentations
10%
Midterm I
15%
Midterm II
15%
Final Exam
20%
_________________________________
TOTAL
100%
Rules & Regulations

Attendance is mandatory for this class. Attendance counts towards your grade

Come to class on time – I will deduct participation points for students coming late to class.

Put your mobile phones on vibrate during classes

Class performance points will also be based on class participation- I encourage cooperative
learning, so please share your ideas and ask/answer questions.

All students are required to bring a scientific calculator to class.

There will be no make-up quizzes

If you miss a mid-term exam, your make-up will be decided comprehensively with the next exam.

Any form of cheating, plagiarism, and disruptive behavior will result in an F.
Lecture Outline
You will be provided handouts for certain lectures, however, there will be course material discussed in class
that will not be in the handouts. Please take notes in class. All lectures will have chapter references in your
textbook. This is the tentative chapter and subject coverage for each exam. This outline is subject to change
depending on class performance. Dates for exams will be announced in class.
Chapter
Topics
One (1)
MULTINATIONAL FINANCIAL MANAGEMENT- AN OVERVIEW: Goal of the MNC,
Constraints with the MNC’s goal, Theories of international trade, Modes of international
business, International opportunities, Valuation model for MNC.
Two (2)
INTERNATIONAL FLOW OF FUNDS: Balance of Payments, Components of Current
Accounts & Capital Accounts, Measurements of Current Accounts & Capital Accounts, factors
affecting international trade flows, Balance of Trade deficit, Factors affecting International
portfolio Investment, Agencies that facilitate international flows.
Three (3)
INTERNATIONAL FINANCIAL MARKETS: Motives for investing in foreign markets, motives
for providing credit in foreign market, Motives for borrowing in foreign markets, Foreign
Exchange Market, Foreign exchange transactions, Attributes of banks that provide foreign
exchange (p: 70), Eurocurrency market, Eurocredit market, Eurobond market
Four (4)
EXCHANGE RATE DETERMINATION: Exchange rate equilibrium, Factors that influence
exchange rates.
Mid Term Examination: 01
Five (5)
CURRENCY DERIVATIVES: Forward market, Currency Futures market, Comparison of the
Forward & Futures markets, Currency Options market, Currency call options, Currency Put
options, Contingency graphs for currency options.
Six (6)
GOVERNMENT INFLUENCE ON EXCHANGE RATE: Exchange Rate System; Fixed, floating,
Managed & Pegged exchange rate system; Currency Boards; Exposure of a pegged currency
rate in exchange rate movements; Dollarization; Single European Currency, Government
Interventions; Intervention as policy tools.
Seven (7)
INTERNATIONAL ARBITRAGE & INTEREST RATE PARITY: International Arbitrage &
different types of Arbitrage, Interest Rate parity (IRP), Determining the forward premium,
Graphic analysis of IRP.
Eight (9)
FORECASTING EXCHANGE RATES: Why firms forecast exchange rates, Forecasting
techniques, Evaluation of forecast performance, Exchange rate Volatility, Methods of
forecasting exchange rate volatility.
Nine (10)
MEASURING EXPOSURE TO EXCHANGE RATE FLUCTUATIONS: Exchange rate risk;
Types of Exposure.
Mid Term Examination: 02
Ten (13)
DIRECT FOREIGN INVESTMENT: Motives for foreign direct investment, Benefits of
International Diversification, How government views of DFI.
Eleven (14)
MULTINATIONAL CAPITAL BIDGETING: Subsidiary VS Parent company, Input for
multinational capital budgeting, Multinational capital budgeting example, Analysis (Ex: 14-2),
Factors to consider in MNC capital budgeting, Adjusting project assessment for risk.
Twelve (15)
MULTINATIONAL RESTRUCTURING: Background; Factors that affect the expected cash
flows; Valuation process; Restructuring decisions of real options.
Thirteen (16)
COUNTRY RISK ANALYSIS: Country risk analysis; Political Risk factors; Financial Risk
factors; Types of country risk assessment; Techniques of assessing country risk; Developing a
country risk rating; Actual country risk rating across the country; Incorporating country risk in
capital budgeting; Application of country risk analysis; Reducing exposure to host government
takeovers.
Fourteen (19)
FINANCING INTERNATIONAL TRADE: Payment methods; Trade finance methods; Agencies
that motivate international trade.
Final Examination