INTERNATIONAL FINANCIAL MANAGEMENT
FIN 705

Dr. Chong Kim

Le Moyne College, Syracuse, NY, Summer 2001, Phone: (315)445-4391,
E-Mail:Kim@mail.lemoyne.edu Fax: 445-4787, Room: RH-309

COURSE DESCRIPTON

This course is designed to help students develop basic financial management tools necessary for evaluating and analyzing international financial markets. As an increasingly large number of corporations, multinational institutions, and countries enters the international financial markets for their financing, investment, hedging, etc., the globalization of financial markets accelerates and financial innovations keep creating new instruments. Thus, it becomes important for corporate managers and investors to properly apply these tools in international context to gain a control over their cash flows and returns. Throughout the course, strategic and financial issues of multinational corporations, risk management, and the regulatory environment will be emphasized.
Specific areas of concentration include:

1. Globalization of financial markets and institutions.
2. Foreign exchange and currency markets.
3. International trade and financing.
4. Foreign direct investment and portfolio investment.
5. International captial movements.

Required Readings

1. Jeff Madura, International Financial Management, 6th ed.(West publishing, 2000).
2. Daily reading of The Wall Street Journal.
3. One case and three handouts to be assigned.
4. Articles from various journals to be assigned.

REQUIREMENTS AND GRADING

Course requirements consist of participation in each class session, reading assignments, a midterm exam, a case report and class discussions. This course considers group work an important element of learning process. Groups of 3 students will be formed by the 2nd week into the semester, and each member of the group should actively participate in the group projects of case analysis. Each team will make a class presentation on their case report as follows:
a. Date: 7/10 and 7/12
b. Duration: 30 minutes for presentation plus 10 minutes for Q/As and discussions.
c. Each team member must participate in presentation.
d. The written report is due by 7/12.

Class Discussion: Class discussions are on the daily article, "Froeign Exchange" which appears in section C of the WSJ and on any international financial news. Every student is expected to read the designated articles and is expected to contribute to the class discussions.

Grading:

Midterm exam-Ind.: 40%
Case report & presentation on 2nd case-Group: 40%
Contribution to class discussions-Ind.: 20.%

TENTATIVE SCHEDULE


Date Topics Assignments
May
24


29


31



June
5


7



12






14



19



21





26



28


July
10



12



17
ch.1, "An Overview."
ch.2, "International flow of funds."

ch.2 continued.
ch.3, "International financial markets."

ch.3 continued
ch.4, "Exchange Rate Determination."
Handout-1, “he Evolving Global Monetary Order."

No class: Take-home case to be assigned.

ch.4 continues
ch.5, "Currency derivatives."
WSJ discussions

ch.5 continued
ch.6, "Government influence on exchange rates."
Handout-2,"The Fall and Rise of the Global Economy."
WSJ discussions

ch.6 continued
ch.7, "Arbitrage and IRP."
WSJ discussions

Midterm exam(ch. 1-6)
ch.7 continued
WSJ discussions.

ch.8, “Relationships Between Inflation, Interest Rates, and Exchange Rates.?BR> Handout-3, “The Effects of a Booming Economy on the US Trade Deficit."
WSJ discussions

ch.8 continued
WSJ discussions.
General discussions on the case.

ch. 13,"Direct Foregn Investment."
General discussions on the case.
WSJ discussions

Class presentations.
ch.19, "Financing International Trade."
WSJ discussions

Class presentations.
ch.19 continued.
WSJ discussions

ch.10,"Exposure to Exchange Rate Fluctuations."
Open discussions.







ch.2 Case


3-2,3,10, ch.3 Case







4-2,4,12, ch.4 Bus. Dilemma



5-6,7,12, ch.5 Case






6-2,4,16, ch.6 Bus. Dilemma




7-2,5,8, ch.7 Case








8-2,5,10, ch.8 Bus. Dilemma