International Finance
Spring 2015
BUS 381 T TH 9:30 – 10:45 a.m.
Albertson Hall - Room 212
INSTRUCTOR:
OFFICE:
PHONE:
E-mail:
OFFICE HOURS:
CREDIT:
Magdy Noguera, Ph.D., CFA
ALB-308
208-885-6204
mnoguera@uidaho.edu
T TH 3:20- 3:50 p.m. W 9:00-1:00 p.m. and by appointment
3 semester hours
Prerequisites: ECON 201 or ECON 272
TEXTBOOK: International Financial Management, 12th edition, by Jeff Madura,
published by Thomson South-Western.
Course Description: This is an introductory course to International Finance issues, e.g.
exchange rates, the international financial environment (financial markets, institutions,
and instruments at work around the world), matters on financial management of
multinational companies, etc.
Assessment of Learning: Activities in this class are designed to help achieve the
following College of Business and Economics learning goals:
CBE Goal #1: Business knowledge and environment,
CBE Goal #2: Critical thinking and ethical problem solving,
CBE Goal # 3: Communication and
CBE Goal # 5: Teamwork and collaboration.
Course Objectives:
At the conclusion of the course, the learner should have an understanding of:
1) The foundations of international finance, exchange rates, balance of payments, and the
international monetary system. (CBE Goal #1)
2) The world financial markets and institutions. (CBE Goal #1)
3) Financial management of foreign exchange exposure. (CBE Goals 1 and #2) and,
4) Develop the ability to demonstrate understanding of the objectives listed above via
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course projects and in-class dialogue. (CBE Goals #3 and # 5)
Attendance: There is a positive correlation between class attendance and class grades.
Therefore, class attendance is highly recommended. Roll will be taken on a daily basis.
Students should come to class to participate and keep up with new material; besides, class
discussion is fair game on exams. If you miss a class, you are responsible to secure notes
from one of your classmates. Please be in class on time and DO NOT have cellphones,
pagers, or earbuds, and any other device that distracts you (or your classmates)
active during class periods! They must be turned off and stowed away. Also, be
aware that food is not permissible in the classroom unless you have a medical condition
and the instructor is aware of that.
Syllabus Receipt Form: By Friday, January 30th, 2015 at 6 p.m., each student must
electronically acknowledge either participating on the discussion of the syllabus in the
first day of class or accessing the syllabus on Blackboard. Electronic acknowledgement
indicates that the student has read and understands the syllabus and agrees to be bounded
by its terms.
Exams: Three regular in-class examinations will be given during the semester. Each
term exam and the final exam will be worth 100 points. Exams will include objective and
subjective questions.
Makeup policy: No makeup exams will be given. In the event that an exam is missed for
a legitimate reason (medical or family emergency, school sponsored trip, etc.), your grade
on the final will replace the missing exam score. That is, your final will include the
standard final exam content plus questions from the chapters assessed in the missed
exam. If you will be missing a test, you must talk to me before the exam is given. You
must provide appropriate documentation concerning your absence when you return.
Important note: The instructor will post (in BBLearn) power point slides for the class.
They are intended to be outline of the material to be covered on the lectures and also can
be seen as a tool to save time in taking notes. However, they are NOT substitute for the
lectures or the textbook’s content, so be aware that the exams will be based on the
textbook, assigned readings, and the lectures.
Class activities: Class activities (reading assignments, group and individual projects,
presentations, etc.) will be announced in advance.
Grading: A total of 500 points are available for the semester. The grading scale is as
follows:
Two term exams (200 points possible)
+ Class Activities (Reading Assignments, group and individual projects,
presentations, in class assignments (200 points possible)
+ Final exam (100 points possible)
= Point total/500 = Final course percentage
90-100% = A, 80-89% = B, 70-79% = C, 60-69% = D, below 60% = F
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If necessary, a curve for the class will be set after the final exam has been taken.
Exam Dates:
First exam: Thursday, February 26th, 2015
Second Exam: Tuesday, April 7th, 2015
Final Exam: Friday, May 15th from 7:30 a.m. to 9:30 a.m.
DISABILITY SUPPORT (ADA):
Reasonable accommodations are available for students who have a documented
disability. Please notify the instructor during the first week of class of any
accommodation(s) needed for the course. Late notification may mean that requested
accommodations might not be available. All accommodations must be approved through
Disability Support Services located in the Idaho Commons Building, Room 306. They
may be contacted at 885-6307, dss@uidaho.edu, or http://www.access.uidaho.edu.
OTHER COURSE POLICIES
E-mail communication:
E-mail communication is the main means of communication between the instructor and
the students outside of the classroom. Therefore, checking your University email is
mandatory.
Student behavior and classroom decorum:
Free discussion, inquiry, and expression is encouraged in this class. Classroom behavior
that interferes with either (a) the instructor’s ability to conduct the class or (b) the ability
of students to benefit from the instruction is not acceptable. Examples may include
routinely entering class late or departing early; use of beepers, cellular telephones, or
other electronic devices; repeatedly talking in class without being recognized; talking
while others are speaking; or arguing in a way that is perceived as “crossing the civility
line.” In fact, the University of Idaho has the following classroom learning civility clause
which we will fully embrace in our class: “In any environment in which people gather to
learn, it is essential that all members feel as free and safe as possible in their
participation. To this end, it is expected that everyone in this course will be treated with
mutual respect and civility, with an understanding that all of us (students, instructors,
professors, guests, and teaching assistants) will be respectful and civil to one another in
discussion, in action, in teaching, and in learning. Should you feel our classroom
interactions do not reflect an environment of civility and respect, you are encouraged to
meet with your instructor during office hours to discuss your concern. Additional
resources for expression of concern or requesting support include the Dean of Students
office and staff (5-6757), the UI Counseling & Testing Center’s confidential services (56716), or the UI Office of Human Rights, Access, & Inclusion (5-4285).”
Academic Misconduct:
Students are expected to maintain the highest standards of academic integrity. Behavior
that violates these standards is not acceptable. Any case of academic dishonesty
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(including, but not limited to cheating on examinations, plagiarism, improper
acknowledgment of sources in essays and the use (or sharing) of a single essay or paper
or excel spreadsheet in more than one course without permission) is considered a very
serious offense and will result in a grade of zero for the assignment or exam in question,
and will be reported to the University of Idaho administration for further action. For more
in what constitutes academic dishonesty, please refer to the student resources section of
the Academic Integrity Initiative at: http://www.uidaho.edu/DOS/academicintegrity
Academic misconduct - Special note: Some homework problems and problems sets will
be strictly individual efforts. Problems sets assigned to the entire group may be discussed
only with the other members of the group. To be very precise, in addition to not being
allowed to discuss problem sets and other group projects, you are not allowed to share
any related information with anyone outside your group. This extends to persons
currently taking the course, those who took it in the past, as well as anyone else (with or
without formal training in finance).
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CHAPTERS’ LIST
The International Financial Environment
Chapter 1: Multinational Financial Management: An Overview.
Chapter 2: International Flow of Funds.
Chapter 3: International Financial Markets.
Chapter 4: Exchange Rate Determination.
Chapter 5: Currency Derivatives
********************* ****** FIRST EXAM ******************************
Exchange Rate Behavior
Chapter 6: Government Influence on Exchange Rates.
Chapter 7: International Arbitrage and Interest Rate Parity.
Chapter 8: Relationships among Inflation, Interest Rates, and Exchange Rates.
************************** SECOND EXAM *****************************
Exchange Rate Risk Management
Chapter 10: Measuring Exposure to Exchange Rate Fluctuations.
Chapter 11: Managing Transaction Exposure.
Chapter 12: Managing Economic Exposure and Translation Exposure.
Chapter 16: Country Risk Analysis
This syllabus is subject to change at the discretion of the instructor. Wording in the
syllabus may change during the semester but course basics (grading, textbook, etc)
will not. Any changes will be noted in class and/or by e-mail.
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