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International Finance Management (BA051IU)

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COURSE DETAILS:

Lecturer: Dr. Ho, Diep, PhD [email protected] (Tel. 0946 317 379, Room A1.305)

Teaching Assistant: TBA

Should the students wish to meet the staff outside the consultation hours, they are advised to make appointment in advance. 

Course Aims:

International Financial Management teaches students how to be effective global financial managers. The text covers the fundamentals of the macroeconomic environment of international financial management, discusses the financial environment in which the multinational firm and its managers must function, and covers foreign exchange management and financial management in a multinational firm.

Reuteurs Entrepreneurship and SME Feed


This course employs an interactive learning and problem-based teaching approach, and emphasises the interaction between lecturers and students. The lecture materials will be uploaded in this course website to help the students to preview the materials and to concentrate on listening and critical thinking during the lecture. This will help students to interact with the lecturer during the classroom. The sessions comprise chapter reviews and time to understand the math as well.  The final presentation (assignment) allows the teams to implement the concepts they learn during the semester. 

After completing the course, students should have developed skills in: 
  • International Finance Vocabulary
  • Finance (Math) skills in analyzing International Business topics
  • Understanding Risk that is specific to the International Environment
Prerequisite course:
BA016IU - Fundamentals of Financial Management

Units of Credit:
This course is worth 3 credits. 

Teaching times and Locations:
Lecture time:  Wednesday 8:00am-11:00am
Venue:  A1.202

Academic Integrity:
Integrity is critical to the learning process and to all that we do here at HCMIU. A student’s responsibilities include, but are not limited to:

Attendance:
Regular and pun
ctual attendance at lectures and seminars is expected in this course. University regulations indicate that if students attend less than eighty per cent of scheduled classes they may be refused final assessment. Exemptions may only be made on medical grounds. 

While we do not 
penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the student's class participation grade. Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Homework:
Homework and other assignments are expected to be completed on time. Late Assignments will not be accepted unless due to documented serious illness or family emergency.

All electronic devices must be turned off prior to the start of each class meeting.

Laptops, tablets, ipad, cell phones, smartphones and other electronic devices are a disturbance to both students and the lecturers.

Calculator:
You need a calculator for this class. A scientific calculator is good enough; you do not need to buy a financial one. As a rule, you will use spreadsheets for homework assignments, and the calculator for the simple examples in class, and, most importantly, for the exams. It is a very bad idea to wait for the last week before buying a calculator.

Study Groups:
It is highly encourage that you regularly review the readings and class notes in a study group. Don’t wait until exam week to set up such a study group. By then it’s too late. You are encouraged to work on the 
problem sets with your study group, but you must hand in your own answers for individual tasks.

Assessment Details:
The final grade is computed as follows:
Mid-Term Exam          30%
Written Assignment / Quizz            30%
No Final Exam                               40%
Total                                            100%

Exam shall be semi-open-book.

In addition, since I wish to emphasize practical skills, students shall complete an assignment that use actual data--and to reflect how most companies conduct business, students shall form groups to handle these assignments.  Groups shall comprise three to five students – no less, no more. In addition, all group members shall score their team mates on how well they have contributed to the assignment (see "Peer Group Participation Form.doc" in the file cabinet section).

Class participation is important and will be explicitly rewarded (10% of the total grade). Effectively, the class participation grade may change a grade near a cutoff.  While we do not penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the class participation grade.  Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Main Textbook: 
    1. Madura J. (2011), International Financial Management, Abridged 10th Edition, South-Western, Cengage Learning.
    References:
    1. Madura J. (2012), International Corporate Finance, 11th edition, South-Western, Cengage Learning.
    2. Geert Bekaert and Robert Hodrick (2012), International Financial Management, 2nd edition, Pearson Education, Inc., publishing as Prentice Hall.
    3. Cheol S. Eun and Bruce G. Resnick (2012, International Financial Management, 6th edition, McGraw-Hill Global Education Holdings, LLC. 
    Homework:

    Week

    Topic

    Learning materials and activities

     

    PART 1:FOUNDATIONS OF INTERNATIONAL FINANCIAL MANAGEMENT

     

    1

    Overview of multinational financial management

     

    Chapter 1

    In-class case discussion : Blades, Inc.

    2

    Balance of Payment (B-O-P)

     

    Textbook, Chapter 2

    Quiz

    In-class case discussion: Blades, Inc-Exposure to international flow of funds

    3

    Foreign Exchange Market

     

    Textbook, Chapter 3

    Quiz

    In-class case discussion: Blades, Inc-Decisions to use international financial markets

     

    4

    Exchange Rate Determination and Exchange Rate Management Systems

     

    Textbook, Chapter  4&6

    5

    Exchange Rate Determination and Exchange Rate Management Systems

     

    Textbook, Chapter  4&6

     

    PART II: EXCHANGE RATE FLUCTUATION and CURRENCY DERIVATIVES

     

    6

    Relationships among interest rate, inflation and exchange rate

    Textbook, Chapter 7 & 8

    Quiz

    In-class case discussion: Blades, Inc: Assessment of purchasing power parity

     

    7

    Relationships among interest rate, inflation and exchange rate (Cont.)

    Forecasting exchange rate

    Textbook, Chapter  8&9

    Quiz

    8

    Review for Mid-term exam

     

    9

    Tools for hedging exchange rate risk: Forwards, Futures and Options contracts

    Textbook, Chapters 5

     

    10

    Tools for hedging exchange rate risk: Forwards, Futures and Options contracts (Cont.)

    Textbook, Chapters 5

     

     

    PART III: EXCHANGE RATE RISK MANAGEMENT

     

    11

    Forecasting exchange rates

    Textbook, Chapter 9

    12

    Measuring Exposure to Exchange Rate Fluctuation

    Textbook, Chapter 10

    13

    Foreign Exchange Exposure and Management:

    Management of Transaction Exposure

    Textbook, Chapter 11

    14

    Foreign Exchange Exposure and Management:

    Management of Economic Exposure and Translation Exposure

    Textbook, Chapter 12

    15

    Review for Final Exam