Professional Documents
Culture Documents
International Finance
Spring 2018
Student Hours:
Tuesdays and Thursdays: 2:00 pm to 3:00 pm
Wednesdays: 11 am to 1 pm
Course Description
The course is designed to help the student understand issues and challenges firms with global presence faces in doing
business. The first part of the course focuses on background materials such as major characteristics, institutions, and players of
exchange rate market, theories of exchange rate determination and forecasting exchange rate. The second part focuses on
corporate finance for international finance, included are topics such as corporate financial and investment policies, risk
management, and portfolio management. Students are expected to sharpen their analytical, problem solving and writing skills
after successful completion of the course.
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Course Learning Objectives
After completing the course students are expected to:
o Understand the risk of doing business internationally and apply the risk management tools available for foreign
exchange exposure.
Course Requirements
1. Class participation
Please take a moment to note that this is a HYBRID CLASS. To facilitate learning I have created video
lectures for each of the units and it is posted on Blackboard. It is imperative that you go through these video
lectures to understand the topics and concepts. During the weekly meeting time we will review main learning
objectives from video lectures, discuss/solve problems, analyze cases to reinforce our learning. In addition to all
these activities, we will write exams during our meeting time.
Part of your class participation grade will be based on completing an anonymous mid-semester survey.
This survey allows me to understand the progression of the class concerning our learning objectives. The
deadline to complete the survey will be announced at a later time.
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2. Online Quizzes [Individual Effort]
We will have four online quizzes. These are short quizzes covering the materials from the last 1 or 2
weeks. Studying for them will give you a chance to review the most recent material, and you will be able to check
your progress throughout the semester. All quiz dates are mentioned on the course calendar. You will be given
only chance to answer the quiz and you can take the quiz anytime during the week. We will discuss the quiz at
the beginning of next week’s class.
3. Homework/Assignments
There will be three comprehensive problem sets to be completed during the semester. You need to
complete the problem sets individually. They are designed to prepare you for the exams. Also, there will be five
end-of-the-chapter (EOC) practice problems. These EOCs need to be completed by groups.
I will randomly assign you to a group at the beginning of the semester. You will need to communicate
with your team member to coordinate the group activities. Also, while sending your group deliverables, please
keep in mind you need to make only one submission, and each submission must mention group number and the
name of the group members on your work. Please check the course calendar for the deadline of EOC exercises
and problem sets.
I will assign real life cases to groups for comprehensive analysis. The case analysis is to be completed in
group. Please check the course calendar for the deadline of each submission. Once the case is submitted, I may
ask you to present your analysis during the class or my office hours depending availability of time. Also note that
the overall case grading depends on the quality of the analysis, however the individual grading depends on the
self-rating and rating by other group members. It is very likely not all team members may not get same grade as
it depends on the individual contribution of group members.
You have to write three exams during the semester. All the exams are closed book and closed notes, no cheat
sheet allowed. The final exam will be comprehensive of material covered over the entire semester. The final
exam will be held as per schedule posted by the register’s office (for exam one and midterm exam please check
the course calendar). Everyone is expected to take the exam as scheduled except in true emergencies. Please
don’t forget to bring your calculator or laptop for the exams.
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Course Assessment
I will evaluate your performance in the course through class participation, quizzes, assignments, a group
project and presentation, midterm and a final exam. This course will have a total of 1000 possible points. The
breakdown of these points is as follows:
Course Feedback
Mid-Semester Survey 10
Online Quizzes
4 quizzes (4 x 10) 40
Assignments
End of Chapter (EOC) Exercises (5 x 10) 50
Problem Set 1 50
Problem Set 2 50
Problem Set 3 50
Real-life cases and presentation
HBS Cases Analysis (4 x 37.5) 150
Course Evaluation
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Course Policies
1. Attendance is required for this class. If you are unable to attend any class please notify me in advance. Please
also note that your presence and participation in class will positively affect your grade on “class participation”.
2. You should not hesitate to stop by my student hours to discuss class materials, quizzes, homework
assignments or final project. You do not need an appointment during the regular office hours. If you cannot
come to office hours due to a timing conflict, please email me in advance to schedule an appointment outside
of the office hours.
3. The syllabus and course outline is subject to change by the instructor during the semester.1 Changes might
occur because of students’ specific needs, general class progression, and emerging topics of interest. Any
change will be notified in- class and also through Blackboard.
4. All the course related communication will be administrated through Blackboard. You should check the course
site on Blackboard for lecture notes, assignments, exams, and announcements.
5. If you disagree with my grading, you can appeal for regrading final project and/or final exam within one week
after the final exam. You must turn in the original project (no changes are acceptable) and/ final exam with
a written documentation explaining the dispute. I reserve the right to re-grade the entire exam and/or the
final project; it is possible that your grade can go up or down while regrading. In the case of group project,
the entire group must sign a written petition to re-grade.
7. At Central Michigan University we take academic integrity and honesty seriously. The following link delineates
detailed expectations from students to ensure academic integrity:
https://www.cmich.edu/office_provost/InternationalAffairs/Student%20Services/campus_services/Pages/A
cademic-Integrity.aspx .
I expect that all the students in this class should adhere the policies stated in the document. In accordance
with University policy, anyone found cheating on an exam or found guilty of plagiarism will fail the course.
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This syllabus and any addendums shall not be construed by the students as a contract, implied or expressed, between the
student and/or the professor and the University.
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(800) 950-1144, extension 3018 or email her at sds@cmich.edu. For more information, please contact
Student Disability Services (Park Library 120, telephone 989-774-3018).
Please notify me well in advance if there are any extremely extenuation circumstances.
10. A make-up exam will only be offered to students with an excused absence. You need to produce proper
documentation showing the legitimacy of the excuse. The following events may qualify for excused absences:
1) Final exam conflict (CMU final exam policy) or 4 final exams in one day; 2) Death of an immediate family
member immediately prior to final exam; 3) Interview or company visit outside of the campus on the day of
final exam; 4) CMU sponsored events if coincided with the day of final exam.
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Detailed Course Outline (Tentative, Subject to Change)
[ER Chapter 7]
Week 8 Feb 26 – Mar 4 Management of Transaction Exposure In-class Exercise # 4 1. End of Chapter Exercise # 3 [Mar 5, EOD]
2. Quiz 3 [CH 7,8] [Mar 5, EOD]
[ER Chapter 8]
3. HBS Mini Case 2 [Mar 6, EOD]
[Hedging at Porsche]
Week 9 Mar 5 – Mar 11 Spring Break – No Class
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Week 10 Mar 12 – Mar 18 International Bond and Equity Market In-class Exercise # 5 1. Video Lecture on CH 12, 13,17
[ER Chapter 12 and 13] 2. Mid Semester Evaluation [Mar 15, EOD]
Week 11 Mar 19 – Mar 25 Cost of Capital for MNCs In-class Exercise # 5 1. End of Chapter Exercise # 4 [Mar 26, EOD]
[ER Chapter 17] 2. Quiz # 4 [CH 12, 13, 17] [Mar 26, EOD]
3. Problem Set Two [Mar 27, EOD]
Week 12 Mar 26 – Apr 1 Exam Two [Mar 29, 2018] 1. HBS Mini Case 3 [Apr 2, EOD]
[ER CH 7,8,12,13,17] [Nextel Peru]
Week 13 Apr 2 – Apr 8 No Class
Week 14 Apr 9 – Apr 15 International Capital Budgeting In-class Exercise # 6
Week 15 Apr 16 – Apr 22 International Capital Budgeting In-class Exercise # 6 1. End of Chapter Exercise # 5 [April 23, EOD]
Week 16 Apr 23 – Apr 29 International Capital Budgeting In-class Exercise # 6 1. Problem Set Three [Apr 24, EOD]
2. HBS Mini Case 4 [Apr 29, EOD]
[3P Turbo]
Case Coursepack:
http://cb.hbsp.harvard.edu/cbmp/access/72900542