Instructor: M. Fouzul Kabir Khan
Phone: 9885611-20/Extn 285
Class Times: Tuesdays, 6:30 pm -9:30 pm
Office hours: Sundays & Tuesdays 5:00 pm -6:30 pm
Email: firstname.lastname@example.org email@example.comYahoo Group:http://groups.yahoo.com/group/fkk_nsu
Graduate Assisant: Ratul P. Saha
This course looks at International Finance from the perspective of the financial manager of a multinational corporation. As corporations extend their operations into international markets, they encounter new opportunities as well as new obstacles and risks. The main focus of the course is on foreign exchange and international capital markets. To this end, we develop the theories and quantitative tools that are necessary for global asset management and investment. The course is organized into five parts. We begin by laying foundations of international financial management. Next, we study ways of measuring and managing exposures to exchange rates. We follow up with a discussion on the global marketplace for capital. Then, we analyze corporate strategy and foreign investment. Finally, we look at recent global financial turmoil. Topics to be discussed include: world financial markets and institutions; international parity propositions, exchange rate determination, forecasting, managing foreign exchange exposure and hedging; foreign direct investment, international capital budgeting, international tax environment and corporate governance. Topics receiving considerable attention in the media such as the global financial crisis will also be discussed.
Eun, Cheol S., Resnick, Bruce G. International Financial Management, 3rd Edition, McGraw Hill. [E&R]
- Madura, Jeff, International Financial Management, 7th Edition, Thomson; South-Western.
- Shapiro, Alan C., Multinational Financial Management, 4th Edition, Prentice Hall.
- Butler, Kirt C., Multinational Finance, 2nd Edition, Thomson; South-Western.
- Khan, MFK, and Parra, Financing Large Projects, 3rdEdition, Prentice Hall [K&P]
Topic 1: Introduction and Corporate Governance [E&R Chs. 1,2, and 21]
Topic 2: Introduction and Corporate Governance [E&R Chs. 1,2, and 21]
Topic 3: Parity Conditions in International Finance [E&R Chs. 5 and 6]
Topic 4: Currency Forwards, Futures, and Options [E&R Ch. 9]
Topic 5: Currency and Interest Rate Swaps [E&R Ch. 10]
Topic 6-7: Measuring and Managing Exposure to Exchange Rates I [E&R Chs. 12-14]
Topic 8: International Portfolio Investment and Cost of Capital [E&R Chs. 11 and 16]
Topic 9: Managing a Pricing International Bond and Equity Offering [E&R Chs. 7 and 8]
Topic 10: International Capital Budgeting [E&R Ch. 17]
Topic 11: International Tax Environment [E&R Chs. 20]
Topic 12: Global Financial Turmoil, Bailouts and Bankruptcy
Paper by Professor M. A. Taslim on Global Financial Crisis
· It is recommended that students complete all assignments in order to achieve the learning outcomes of the course. The total mark will be determined on the following bases:
- Two Midterms 40%
- Final exam 40%
- Paper 20%
· The exam will cover all the topics discussed in the classes.
· The final exam is cumulative and will cover the entire course.
· The exams will consist of quantitative problems, short essays, and true/false questions.
· Although the exams are closed-book, you may bring into the exams one half sheet of an A4-size paper (i.e., 15cm × 21cm) with hand-written notes on both sides and a calculator.
· I will not reschedule or give make-up exams. If you have time conflicts with other courses, especially for the midterm, you will be responsible for making appropriate arrangements.
· Absence from the exams will not be excused, except for documented serious medical reasons.