Syllabus
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FIN 610
International Finance
Summer 2013
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Course Syllabus
Course Title
FIN 610 International Finance
School
School of Business, University of Bridgeport
Thursday: 12:45 PM -5:00 PM; May 16-July 18
(No class on July 4)
Library 500C
Course Schedule
Course Location
Instructor
Office Telephone
Congsheng Wu, Ph.D., Professor of Finance
203-576-4869
Email
congwu@bridgeport.edu
Office Location
Mandeville Hall, Room 204
Office Hours
Monday and Thursday: 5:00 PM - 6:00 PM
Mailing Address
230 Park Avenue, University of Bridgeport, Bridgeport, CT 06604
Course Objective
This is an introductory course about international financial management with special
emphasis on multinational enterprises (MNEs). A MNE is defined broadly as one that is
incorporated in one country, but has operating subsidiaries, branches or affiliates located
in other countries. Today, almost all large companies are MNEs. Main topics to be
covered in this course include the international monetary system, balance of payments,
foreign exchange market, international parity conditions, exchange rate determination,
currency derivatives, and foreign exchange risk management.
Required Textbook and Readings
Fundamentals of Multinational Finance, 4/E
Moffett, Stonehill & Eiteman
©2012 | Prentice Hall | Published: 07/15/2011
ISBN-10: 0132138077 | ISBN-13: 9780132138079
Additional reading materials will be assigned in class.
Class Procedure and Participation
Class will consist of lectures and discussions of the assigned reading materials. Please
show up on time. Students are expected to read the chapters assigned for each session
beforehand and to participate in the discussions. Class participation accounts for 20% of
the total grade. To receive 100% of the total grade points allocated to participation, you
must meet the following expectation: during each class meeting, you need to engage in,
and contribute to, classroom discussions in an active and positive manner, contributing to
the learning objectives of the course. Business publications such as the Wall Street
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Journal, The Economist and Financial Times provide excellent articles on various topics
related to our class.
Exams
There will be two exams: the mid-term exam and the final exam. The mid-term exam will
be given during regular class hours on June 13. There will be no make-up exam.
Students who cannot take the exam must notify the instructor beforehand. The only
acceptable excuses for missing the exam are incapacitating illness and other extreme
emergencies. Students who miss the mid-term exam will only need to take the final exam,
on July 18, and the final exam will account for 60% in the students’ final score of this
course. Students are responsible for all materials presented in the lectures.
Homework Assignments
Homework will be assigned regularly and account for 20% of the total grade. All
assignments must be submitted with a hardcopy at the start of the class. Unless stated
otherwise, all written assignments are to be typed, double spaced, proofread and
corrected for grammatical, spelling and typographical errors. Late homework will not be
accepted.
Academic Honesty
Academic honesty is highly valued. Plagiarism, copying each other’s homework and
cheating during exams are absolutely not allowed. A student must always submit work
that represents his or her original words or ideas. If words or ideas that do not represent
the student's original work are used, the student must cite all relevant sources as
references. The student should also make clear the extent to which such sources were
used. Words or ideas that require citations include, but are not limited to, all hardcopy or
electronic publications, whether copyrighted or not, and all verbal or visual
communication when the content of such communication clearly originates from an
identifiable source.
It is the student's responsibility to familiarize himself or herself with and adhere to the
standards set forth in the policies on cheating and plagiarism as defined in Chapters 2 and
5 of the Key to UB at www.bridgeport.edu/pages/2623.asp or in the appropriate graduate
program handbook.
Electronic Devices
Please turn off your electronic devices except perhaps your laptop computers. However,
please don’t use your laptop to check emails, watch video, or go to unrelated web sites.
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Grading
Please note that everyone starts with an A. How you maintain that grade is up to you.
Following is my ideal student:
A = The student who:
Is an excellent performer
Has unusually sharp insight into materials and initiates thoughtful questions
Sees many sides of an issue
Articulates well and writes logically and clearly
Integrates ideas previously learned from this and other disciplines
Anticipates next steps in the progression of ideas
Submits assignments on time
Is in full attendance
Constructively contributes to the learning environment
Your final grade will be determined as below:
Class participation
Homework assignments
Midterm exam
Final exam
20%
20%
30%
30%
Main Topics and Chapter Assignments
Part 1 Global Financial Environment
This course is about the international financial management with special emphasis on the
multinational enterprises (MNEs). A MNE is defined broadly as a firm that is
incorporated in one nation, but has operating subsidiaries, branches or affiliates located in
foreign countries. Part 1 introduces the global financial environment in which MNEs
operate. Chapter 1 provides an introduction to the globalization process and the global
economy. Chapter 2 focuses on one of the major challenges facing MNEs, their financial
goals and how these goals can be achieved. Chapter 3 discusses the history of the
international monetary system as well as the contemporary currency arrangements around
the world. Chapter 4 explains how to summarize all cross-border financial transactions
between one nation and the rest of the world. And this summary is referred to as the
balance of payments (BOP). MNEs use various BOP measures to gauge the growth and
health of specific types of foreign trade and financial transactions against the host country.
Chapter 5 provides a detailed coverage of the credit crisis of 2007-2009.
Chapter 1
Chapter 2
Chapter 3
Current Multinational Challenges and the Global Economy
Financial Goals and Corporate Governance
The International Monetary System
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Chapter 4
Chapter 5
The Balance of Payments
Current Multinational Financial Challenges: The Credit Crisis of
2007-2009
Part 2 Foreign Exchange Theory and Markets
Part 2 describes how the currency market works and examines the behavior of the foreign
exchange rates as the background knowledge that must be understood by management of
MNEs in order to measure and manage their firms’ foreign exchange risks. Chapter 6
describes how the foreign exchange market operates. Chapter 7 establishes the link
between foreign exchange forward rates and interest rates, the purchasing power parity
and the international Fisher effect. Chapter 8 discusses currency derivatives, which
include currency futures, options and swaps.
Chapter 6
Chapter 7
Chapter 8
The Foreign Exchange Market
International Parity Conditions
Foreign Currency Derivatives and Swaps
Part 3 Foreign Exchange Exposure
This part examines how changes in exchange rates affect the multinational enterprise’s
profitability, cash flow, and market value. Two types of foreign exchange exposure are
identified and examined: transaction exposure and operating exposure. Chapter 9
investigates what determine and how to forecast foreign exchange rates. Chapter 10
discusses the basic techniques to manage transaction exposure.
Chapter 9
Chapter 10
Foreign Exchange Rate Determination & Forecasting
Transaction and Translation Exposure
Welcome to My Class
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