7/27/2019 Fin435 2011 Spring.doc

1/4

TOWSON UNIVERSITY

FIN 435.101INTERNATIONAL FINANCE

Spring 2011

Instructor: Moon-Whoan Stephen Rhee, Ph.D.Office: Stephens Hall (ST)316HWork Phone: 410-704-4075Class Hours: T6:30~9:10pm (ST206)Office Hours: W 3:20~6:20pm (official) and by appointment

W 10:00am~12:00pm (unofficial), No appointment needed for official office hoursEmail: turhee@hotmail.com(Note your course & section number in the subject line)Home Page: www.towson.edu/~rhee

REUIRED TEXTBOOKInternational Financial Management, by Cheol. S. Eun and Bruce G. Resnick, 5 th, McGraw-Hill Irwin, 2009.

COURSE OBJECTIVE: This course extends the principles of finance in the international context. International finance

differs from the purely domestic version in two important ways. First, the existence of multiple currencies whoseexchange rates float more or less freely in response to market forces is a source of additional complication to investmentand financing decisions. Second, since multinational corporations operate across the borders of sovereign states, we shallstudy the effects of national tax, regulatory, and political regimes on corporate decision-making. The first part of thecourse is an overview of the global financial environment and an introduction to exchange rate behavior. The second partof the course focuses on the theory of the firm in an international setting, with emphasis on the problems of managingforeign exchange exposure, capital budgeting for foreign projects, and international borrowing.

PREREQUISITES: FIN 331. FIN 332, FIN 333, and ECON 421 would be useful.

COURSE REQUIREMENTS: Your grade will be based on individual-group homework assignments, one mid-term,and one final. The final exam is comprehensive. Every assignment needs to be word processed and should be sent asemail attachment before its deadline. For group assignments, the use of Google doc is encouraged. I will drop onehomework assignment with the lowest mark. Professional appearance does count. If you achieve more than 95% on the

mid-term and HWs, you may work on a project and tutoring other students in lieu of the final exam. Write down all theanswers legibly. You should keep all your exams and assignments so that in case there is any discrepancy you should

present them as evidence.

Point distribution

Mid-term 20 or 35% pointsFinal 40 or 55% pointsHWs (Individual-Group) 15 points

Quizzes 10 points------------------------------------------------------------------------

100 pointsFinal is comprehensive. Please note that the final exam will be given on 5/24 (Tues)

KSAs: Relevant KSAs for this course include Thinking (problem solution, flexible thinking in new ways, integration ofaccounting and economics subjects, etc.), Business Content and Practical Excellence (computations and estimations).

EXPECTATIONS: An average student needs to spend about one hour a day, five hours per week on this subject,exclusive of class hours and preparations for exams. This is a 400 level course. I expect you to exhibit professional

behavior. I expect you to come to class prepared and actively participate in class discussions. I also expect you not to doanything to distract the class. I reserve the right to give a lower mark to those who distract the class regardless of theiracademic performance. If you miss the class six hours or more, I may assume that you are dropping the course. Noexcuses (legitimate or not, documented or not) are necessary and will be accepted. Coming into class late or leaving the

class in the middle of class (even if you are coming back) without my prior consent may also be considered asmissing the class.

http://www.towson.edu/main/maps/index.asp?id=SThttp://www.towson.edu/main/maps/index.asp?id=STmailto:turhee@hotmail.commailto:turhee@hotmail.comhttp://www.towson.edu/~rheehttp://www.towson.edu/main/maps/index.asp?id=STmailto:turhee@hotmail.comhttp://www.towson.edu/~rhee

7/27/2019 Fin435 2011 Spring.doc

2/4

FINAL GRADING:A 90 or better, B 80 or better, C 70 or better, D 60 or better, F below 60EXCUSED EXAMS:No make-ups. However, upon presentation of a University accepted legitimate writtenexcuse (e.g., doctors note, University team coachs note), an alternative point distribution system may be used.

NEED HELP? Students who need help during the course should not hesitate to see me with questions on lecturematerial or other course content.

ACADEMIC INTEGRITY: Student Academic Integrity Policy (Towson Undergraduate Catalog p.277):The acquisition, sharing, communication and evaluation of knowledge is at the core of a universitysmission. To realize this part of its mission, a university must be a community of trust. Becauseintegrity is essential to the purpose of an academic community, the responsibility for maintainingstandards of integrity is shared by all members of that academic community.

The Student Academic Integrity Policy as it pertains to this class: There is no tolerance of academicdishonesty in this class. Any violations are sanctioned by the professor.

LEARNING DISABILITIES: To request academic accommodations due to a disability, please contact theDisability Support Services Office at (410) 704-2638. If you have a letter from their office indicating thatyou have a disability which requires academic accommodations, please present the letter to me during the firstweek of class so that we can discuss the accommodations that you might need in this class.

MISCELLANEOUS: My Schedule & Reading Assignments are tentative and subject to changes as thesemester progresses. Please check my e-mail on a regular basis.

UNIVERSITY SPECIAL ANNOUNCEMENT: Students should not attend classes or other universityevents from the onset of flu-like symptoms until at least 24 hours after the fever subsides without the use offever reducing medications. Such absences will be considered excused absences; however, students areresponsible for the material covered during the period of their absence.

REPEATED COURSE POLICY: Students may repeat a course only once. For a third attempt, a studentmust obtain a written approval from the Academic Standards Committee. Students who do not obtain writtenpermission for a third attempt enroll at their own risk.

CBE STANDARD: Regardless of the subject matter, the student will be held accountable for proper grammarand correct spelling for all written assignments, including exams.

UNIVERSITY SPECIAL ANNOUNCEMENT: Students should not attend classes or other university eventsfrom the onset of flu-like symptoms until at least 24 hours after the fever subsides without the use of fever reducingmedications. Such absences will be considered excused absences; however, students are responsible for the materialcovered during the period of their absence.

USEFUL WEBSITES

In addition to the websites introduced in the textbook, you may find the following websites useful.http://www.twinkiesproject.com/http://finance.yahoo.com (Yahoo Finance), Use Yahoo's search engine as well.biz.yahoo.com/ifc Country Reporthttp://pacific.commerce.ubc.ca/xr/ (Pacific Exchange Rate Services).

http://www.twinkiesproject.com/http://www.twinkiesproject.com/

7/27/2019 Fin435 2011 Spring.doc

3/4

www.prenhall.com/phlip and click on International Finance.www.choicefx.com for an interesting simulation game.www.globalcontest.com for international currency trading challenge.www.pforex.com provides useful information about currency trading.www.bmo.comGo to Risk Management in Corporate & Institutional Clients, then go to Foreign Exchange toCurrency Forecasts

www.cme.com/products/currency/index.cfm Choose Globlex in the Quotes and Data, then choose Swissfrancs and options in Currency Products, View the entire file.www.imf.org and www.worldbank.org for useful info and data.www.webcom.com/one/world/foreign.htmlfor useful websites.www.forextrading.com/members/analysis/us_dollar.aspwww.stls.frb.org and click on "FRED." And click on "data files" and click on "monthly exchange rate data" tofind access to various time series of the FED Reserve of St. Louis.www.ny.frb.org/pihome/mktrates to find current and historic exchange rates and implied currency optionvolatility.www.commerzbank/datem/zinsen/ausww.htm to find external values of selected currencies.www.bloomberg.com/marketsfxe.html to find key currency cross rates.www.mexi.com/ECO/index.html to find economic charts of 40 countries (currencies, stock exchanges, interestrates).http://www.micheloud.com/FXM/MH/Bimetalintro.htmabout bimetallism.www.ask.com

http://www.bmo.com/http://www.cme.com/products/currency/index.cfmhttp://www.forextrading.com/members/analysis/us_dollar.asphttp://www.micheloud.com/FXM/MH/Bimetalintro.htmhttp://www.micheloud.com/FXM/MH/Bimetalintro.htmhttp://www.ask.com/http://www.bmo.com/http://www.cme.com/products/currency/index.cfmhttp://www.forextrading.com/members/analysis/us_dollar.asphttp://www.micheloud.com/FXM/MH/Bimetalintro.htmhttp://www.ask.com/

7/27/2019 Fin435 2011 Spring.doc

4/4

COURSE OUTLINE AND REQUIRED READINGS

1st & 2nd Week;Topics to be covered: MNCs, Intl Capital Flows, Exchange Rates, Internet. Currency Assignment.Readings: Syllabus, Ch. 1.

3rd Week

Topics to be covered: International Monetary System.Readings: Ch. 2.

4th WeekTopics to be covered: Balance of Payments and Intl Corporate GovernanceReadings: Ch. 3 & 4.

5th WeekTopics to be covered: Midterm I

6th WeekTopics to be covered: Currency Markets.Readings: Ch. 5.

7th WeekTopics to be covered: Parity Conditions and Currency Forecasting.Readings: Ch. 6.

8th WeekTopics to be covered: Currency Derivatives.Readings: Ch. 7.

9th WeekTopics to be covered: Review

10th WeekTopics to be covered: Exam II

11th WeekTopics to be covered: Exchange Rate Risk Exposures and ManagementReadings: Ch. 8,9,10.

12th WeekTopics to be covered: International Financial Institutions and Markets.Readings: Ch. 11,12,13.

13th WeekTopics to be covered: Interest and Currency SwapsReadings: Ch. 14.

14th WeekTopics to be covered: Other Topics in International Finance

Readings: Chs. 18, 19, 20.

15th WeekTopics to be covered: Review.

Final is comprehensive. Please note that the final exam will be given from 5/24 (Tues)