Islamabad Campus

Course Syllabus Course Name: Course Code: Credit Hours: Course Prerequisites: Quarter/Year: Instructor: Contact No: Consultation Hours: E-mail: 1.Course Description: International Financial Management 3/3/0 Credit hours/class hours(per week)/lab hours(per week) Introduction to Business Finance or any basic finance course Spring/2012 Muhammad Usman Kemal 051-4863363-65 and In case of emergency 0345-5009160 17:00 to 18:00 on Wednesday for MBA (eve) and 14:00 to 15:00 on Thursday for MBA (day) or by appointment usmankemal@szabist-isb.edu.pk

The course examines financial management from an international perspective. It begins with an in-depth examination of international financial markets and instruments, foreign exchange regimes and exchange rate determination and then focuses on investment and financing decisions primarily from the perspective of a multinational firm. A significant part of this course covers methods of evaluating foreign investment proposals, strategies for financing foreign investment and risk management issues for a firm dealing with multiple currencies and various financial and political institutions. 2.Course Objectives: The objective of each lecture will be to provide basic understanding about international financial management, which is the foundation for further study in other International Finance related courses. I will bring together the key concepts and methods of a particular topic area. Further, the lecturer will provide guidance as to how a particular problem might be resolved, or a task undertaken, regarding the weeks course matter. 3.Learning Outcomes: LO1. After completion of this course, students will be able to apply financial management tools at the international level LO2. They will observe international financial markets as a savvy and impartial analyst LO3. They can able to comprehend major obstacles to an integrated financial market LO4. Students will know about measuring the exchange rate, fluctuation in foreign exchange, the derivatives and how transaction takes place when you talk about trading internationally. International Financial Management Page 1 of 6

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4.Textbook: Shapiro, A. C. & Sarin, A. (2009). Foundations of Multinational Financial Management, 6th Edition, John Wiley and Sons, Hoboken, NJ 5.Reference Book(s): Madura, J. (2012). International Financial Management, 11th Edition, South-Western Publishing Shapiro, A. C. (2008). Multinational Financial Management, 8th Edition, John Wiley and Sons, Hoboken, NJ 6.Grading Policy/Student Assessment: Assessment Instruments* Percentage* LO Covered Mid Term 30% LO 1-7 Assignment 8% LO 1-15 Quizzes/Tests 7% LO 2-15 Project 10% LO 2-15 CP 10% LO 2-15 Final Exam 35% LO 2-15 * recommended but may be changed under teachers discretion. 7.Weekly Course Outline: Session 1 Session Topic Icebreaking, introduction to Overview IFM and course outline Globalization and its Multinational consequences, the rise of Enterprise and the multinational Multinational corporation, the process of Financial overseas expansion by Management multinationals Setting the Equilibrium spot The exchange rate, expectations Determination and asset market model of of Exchange exchange rates, the Rates fundamentals of central bank intervention The Alternative exchange rate International systems, history of the Int. Monetary Monetary system, European System monetary and monetary Chapters Assessments Percentage

Assignment # 1

2%

Assignment # 2

2%

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The Foreign Exchange Market Parity Conditions and Currency Forecasting The Balance of Payments and International Economic Linkages Currency Futures and Options Markets Swaps and Interest Rate Derivatives Measuring and Managing Translation and Transaction Exposure Measuring and Managing Economic Exposure

union, emerging market currency crises Organization of the foreign exchange market, the sport and forward market Arbitrage and the law of one price, Purchasing power parity, fisher effect, the international fisher effect, interest rate parity, Relationship b/w the forward rate and the future spot rate, currency forecasting BOP categories, The international flow of goods, services and capital, coping with the current-account deficit Mid Term Futures contracts, currency options, reading currency futures and options prices Interest rate and currency swaps, interest rate forwards and futures Alternative measures of foreign exchange exposure, alternative currency translation methods, transaction exposure, designing a Hedging strategy, managing translation and transaction exposure Foreign exchange risk and economic exposure, the economic consequences of exchange rate changes, identifying and calculating economic exposure, an

Assignment # 3

2%

8 9

30% Instructor Evaluation

10

11

12

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13

Country Risk Analysis

14

The Euromarkets

15

Financing Foreign Trade

16

operational measure of exchange risk, managing operational exposure Measuring Political risk, economic and political factors underlying country risk, country risk analysis in Int. Banking The Eurocurrency market, Eurobonds, Note issuance facilities and Euronotes, Euro-commercial paper, the Asiacurrency Market Payment terms in Int. Trade, Docs in Int. Trade, Financing techniques in Int. Trade, govt. sources of Export financing and credit insurance, countertrade Final Exam

Assignment # 4

2%

Final Project

10%

35%

8.Expected Class Conduct: Students are not allowed to eat or using their cell phone during a class. During a class, if someone is speaking, let him/her speak and finish what he/she is saying. About the assignments, it should be submitted both online and in a class prior to instructors arrival. Better not to submit your assignment/s late as I will not accept any late assignment unless there is some emergency and you need to provide a proof of that as well. Academic integrity is based on values of honesty, respect, fairness, trust and responsibility. These values are fundamental to our teaching and learning in the Faculty. Academic misconduct, including plagiarism, copying another students work and cheating in exams, is contrary to the values of academic integrity and is not tolerated. 9.Teaching and Learning Methodology: Students are expected to regularly attend classes and actively participate in discussions and required to spend a minimum of 5 additional hours in order to prepare for classes and for assignments. It is important to note that students should attempt to answer assigned questions and problems to them. An appropriate use of supplementary material, the midterm test, quizzes and feedback and final exam preparation are other important components of the program. Students are invited to seek further clarification or raise relevant issues during lectures. International Financial Management Page 4 of 6

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10. Materials and Supplies: Teacher will supply all the relevant material required for the course. 11. Attendance Policy: Prompt arrival and regular attendance are extremely important. Refer to student handbook for policies on late entry, maximum absences allowed, leave application etc. 12. Students with Physical or Educational Challenges: Students with educational and/or physical challenges are entitled to extra attention and time from the instructor. Therefore students are advised to notify the course instructor at the beginning of the course. Special arrangement may also be made on prior request based on specific challenges. 13. Academic Integrity This course seeks to empower students for independent learning, resourcefulness, clear thinking, and perception. All submitted work and activities should be genuine reflections of individual achievement from which the student should derive personal satisfaction and a sense of accomplishment. Plagiarism and cheating subvert these goals and will be treated according to the policy stated in the Student Handbook. The instructor reserves the right to utilize electronic means to help prevent plagiarism. 14. Instructors Course Portfolio: ICP is a link on Zabdesk where faculty will upload the following course files: Course syllabus Presentation slides Handouts Lecture notes Reading material Exams/Hourly/Quizzes Assignments Project It promotes a paperless environment and provides a one-point file access for students, faculty & IR. However, some hardcopies will still be required for submission at semester end: Exams/Quiz/Hourly question papers with answer sheets Model answers for all assessments International Financial Management Page 5 of 6

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(under teachers discretion a soft copy of above-mentioned may be uploaded instead) All assignments submitted in hardcopy. 15. Comments and/or Suggestions: Students and Instructors may contact the Institutional Research Department if there is a need to make suggestions or comments that can help further improve the course. A link is also provided on your ZABDESK account for frequent and trouble-free feedback. The Institutional Research Department would like to hear your feedback about the following: Students Course Content/ thoroughness Lecture Delivery/Supplementary Material Facilities/Labs/Software/Hardware Support Course alignment with learning outcomes Any other comments/feedback Instructors Availability of teaching material Facilities/Internet/Administrative Support Labs: Software/Hardware/Technical support Availability and quality of Teaching Instruments Any other comments/feedback

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