Revised: August 21, 2014
Stevens Institute of Technology
Howe School of Technology Management
Syllabus
BT XX4
International Economics and Finance
Spring 2015
Ying Wu
Babbio 422A
Tel: 201-216-3510
Fax: 201-216-5385
Ying.Wu@stevens.edu
Office Hours:
Fri 2:00 pm – 5:00 pm
Also by appointment
Course & Web Address:
Overview
This course applies principles of economics and finance to the international setting. The
first half of the course deals with microeconomic and macroeconomic issues of
international trade and covers such issues as (i) why countries trade, (ii) the theory and
practice of trade policy including multilateral trade liberalization within the WTO and
regional economic integration, (iii) exchange rate. The second half of the course deals
with issues of international finance. International finance is different in two basic
respects. First, the existence of multiple currencies adds risk to investment and financing
decisions. Second, when corporations and portfolio investors cross international borders
both problems and opportunities arise. We will start with these issues, then move to apply
the principles of international finance to several real world problems, and at the end
hopefully look into international macroeconomic policy including European Monetary
Union and the Euro Area debt crisis, financial globalization and the 2007-2009 global
financial crisis, crisis and reform in developing countries.
Learning Goals
It aims at teach you how to evaluate and conduct economic and financial analysis of
issues relating to international business. You’ll be able to understand the ideas and
research results of international economics and international finance, and to adapt what
you learn to the practical problems of the business world beyond the classroom.
Additional learning objectives include the development of:
1. Written and oral communications skills: the individual assignments will be used to
assess written skills and the final group presentations will be used to assess
presentation skills.
2. Team skills: The group project for the course will involve student teams.
3. A core business knowledge and understanding how to integrate technology with
business fundamentals.
4. Problem solving skills, especially in developing innovative solutions to business
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problems.
Pedagogy
You are required to attend all classes, participate in class discussions. Your letter grade
will be based on class participation, attendance, problem sets, exams and project.
The instructor reserves the right to determine the final grade assigned to each student.
Required Text(s)
Alan C Shapiro, Multinational Financial Management, 9th Edition
Krugman, Paul R., and Maurice Obstfeld, International Economics: Theory and Policy,
9th Edition
Recommended:
Jeff Madura, International Financial Management, 11th Edition
Prerequisites: BT 243 Macroeconomics, BT 244 Microeconomics, and the core finance
class or its equivalent (e.g., E 355 Engineering Economy); BTXX1 Intermediate
Microeconomics, BTXX2 Intermediate Macroeconomics, BTXX3 Econometrics
preferred
Exams
PLEASE READ CAREFULLY NOW!
Exams are closed book and consist of multiple-choice questions, short answer questions,
and short essay questions. Times and locations are to be announced. The following rules
and procedures govern the examinations:
1. Only simple hand held ordinary calculators are allowed at exams. No cell phones, ITouch/Tunes devices, or similar devices with graphing and/or web browsing, text
reading capabilities or “apps” are allowed at exams. The policy is strictly adhered to,
please make sure you get a simple standard calculator and a time piece before First exam.
2. Exams will occur in the sections that the student is registered for.
3. Make-up exams will not be given without my prior approval. Students who miss an exam
without prior approval will receive a zero grade on that exam.
a. In the event that you have another exam scheduled by Stevens Institute of
Technology at either or all of these three exam times, you have two options:
Option 1 Take the early morning exam on the exam date. You need to get the
sign-up/request form from me first and you will not be allowed leave early. The
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exam is the same exam that everyone else will take;
Option 2 Take the make-up exam within one week after the official exam. You
need to get the sign-up/request form from me first. Make-up exams are of
comparable length and difficulty to the official exam, but not of necessarily
identical format.
b. For all other exam conflicts you must come and see me in person ASAP. In general, I
only approve the request with a legitimate medical or family excuse. These excuses
must be verified in writing by the Dean’s office for family reasons or a physician for
illness. A note stating that you visited Student Health is not sufficient. Having
anxiety attacks will not be considered.
Assignments
There are three assignments in the course, which will be handed out in class. They are
intended to enhance and reinforce the lectures and strengthen your computing and
analysis skills.
1. You are required to hand in a complete written copy of your work on each such
assignment. You are allowed, and encouraged even, to work in groups on the homework.
However, you must each turn in your own written solutions.
2. The homework you turn in must be indicated with course #, Section Letter, and
assignment identifier, and must be signed by family name and given name.
3. The homework you turn in must be either typed, or printed in pencil or black (or blue)
ink. It must be stapled.
4. Homework will only be collected on Friday. The due date will be indicated in class.
You are responsible for knowing when homework is due and for taking the initiative in
turning it in.
Homework that is turned in on the first Friday section after the due date will be eligible
for 75% credit. Homework that is turned in on the second Friday section after the due
date will be eligible for 50% credit. Homework that is turned in on the third Friday
section or even later, but no later than December 1, 2014, after the due date will be
eligible for 25% credit.
In case of an emergency (such as serious illness) or absence because of official
university business, these deadlines may be extended by mutual agreement with the
instructor. The length of the extension should be negotiated with the instructor as early
as possible. In particular, extensions for foreseeable absences must be negotiated before
the absences occur. Indeterminate extensions will not be given.
5. Full credit will be earned for attempting a complete, careful solution to each problem,
even if the details are not perfect.
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Ethical Conduct
The following statement is printed in the Stevens Graduate Catalog and applies to all students
taking Stevens courses, on and off campus.
“Cheating during in-class tests or take-home examinations or homework is, of course, illegal and
immoral. A Graduate Academic Evaluation Board exists to investigate academic improprieties,
conduct hearings, and determine any necessary actions. The term ‘academic impropriety’ is
meant to include, but is not limited to, cheating on homework, during in-class or take home
examinations and plagiarism.“
Consequences of academic impropriety are severe, ranging from receiving an “F” in a course, to
a warning from the Dean of the Graduate School, which becomes a part of the permanent student
record, to expulsion.
Reference:
The Graduate Student Handbook, Academic Year 2003-2004 Stevens
Institute of Technology, page 10.
Consistent with the above statements, all homework exercises, tests and exams that are
designated as individual assignments MUST contain the following signed statement before they
can be accepted for grading.
____________________________________________________________________
I pledge on my honor that I have not given or received any unauthorized assistance on this
assignment/examination. I further pledge that I have not copied any material from a book, article,
the Internet or any other source except where I have expressly cited the source.
Signature _________________________
Date: _____________
Please note that assignments in this class may be submitted to www.turnitin.com, a web-based
anti-plagiarism system, for an evaluation of their originality.
Course/Teacher Evaluation
Continuous improvement can only occur with feedback based on comprehensive and appropriate
surveys. Your feedback is an important contributor to decisions to modify course
content/pedagogy which is why we strive for 100% class participation in the survey.
All course teacher evaluations are conducted on-line. You will receive an e-mail one week prior
to the end of the course informing you that the survey site (https://www.stevens.edu/assess) is
open along with instructions for accessing the site. Login using your campus username and
password. All responses are strictly anonymous. We especially encourage you to clarify your
position on any of the questions and give explicit feedbacks on your overall evaluations in the
section at the end of the formal survey which allows for written comments. We ask that you
submit your survey prior to the close of the examination period.
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COURSE SCHEDULE
Topic
1. World Trade Overview
2. Comparative Advantage: The Ricardian Model
3. Specific Factors and Income Distribution, Resource and Trade: The HeckscherOhlin Model
4. Gains from Trade and Regional Agreements
5. Import Tariffs and Dumping & Import Quotas and Export Subsidies
6. Trade Policy in Developing Countries
7. The International Financial Environment
A. Multinational Financial Management
B. International Flow of Funds
C. International Financial Markets
8. Exchange Rate Determination
9. Currency Futures and Options
10. Exchange Rate Behavior
A. Government Influence on Exchange Rates
B. International Arbitrage and Interest Rate Parity
C. Relationships among Inflation, Interest Rates, and Exchange Rate
11. Exchange Rate Risk Management
A. Measuring Exposure to Exchange Rate Fluctuation
B. Managing Transaction Exposure
C. Managing Economic Exposure and Translation Exposures
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