FIN471 International Financial Management Syllabus Fall 2021 Professor PDF

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FIN471 International Financial Management Syllabus Fall 2021. Reviews the assignments, the expected course load, etc. Just know that while finance is involved, it is more heavily based on economic theory. Loved the class though. Professor is great!...

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PENN STATE BERKS – FALL 2021 FIN 471 International Finance Section 050

FOLLOW PENN STATE COVID PROTOCOL CLOSELY link below https://senate.psu.edu/syllabus-language-for-required-and-covid-19-related-topics/

Professor: Sudip Ghosh, Ph.D. Office: 324 Gaige (New Building) Phone: (610) 396 - 6346 Office e-mail: [email protected] Be mindful there is another Sudip Ghosh at Penn State so please double check before you email me. Class Time/Location: Thu: 6:30 p.m. to 9:10 p.m.

Office hours: 9:30 am to 10:25 am Tue.& Thu. 5:15 pm to 6:15pm Mon Or by appointment

Gaige 120 1.

Required Text:

International Financial Management, Abridged Edition, 11th Edition Jeff Madura ISBN-10: 1-133-43517-3 ISBN-13: 978-1-133-43517-4

Supplemental reading material a. Wall Street Journal, New York Times, Economist b. Supplemental materials will be posted in canvas and students are responsible to read its content. c. Personal calculator 2.

Student Responsibility for Learning:

The faculty, administration, and staff at Penn State Berks believe that learning is a two-way process, and we work hard to meet our obligations, both inside and outside the classroom. Since students are an integral part of the whole process, it is imperative that students should take equal responsibility in making the classroom experience a fine one for learning and everybody around us. Taking responsibility includes:  Attend regularly and come to class on time.  Complete all assignments on time.  Meet instructor’s expectations in both in-class and out of class work.

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Active class participation is encouraged and rewarded. Work diligently and putting adequate time in class work - your work should reflect that. Take advantage of college resources (e.g., Learning Center, Writing Center, Library Workshops, Technology Workshops, College Seminars). “Academic Integrity Statement:

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Academic integrity is the pursuit of scholarly activity in an open, and honest, responsible manner. Academic integrity is a basic guiding principle far all academic activity at The Pennsylvania State University, and all members of the University community are expected to act in accordance with this principle. Consistent with this expectation, the University’s Code of Conduct states that all students should act with personal integrity, respect other student’s dignity rights, and property, and help create and maintain an environment in which all can succeed through the fruits of their efforts. Academic integrity includes commitment not to engage in or tolerate acts of falsification, misrepresentation, or deception. All work submitted (tests, quizzes, homework assignments) must be your own – not copied in whole or in part from another student or from printed or electronic sources. Academic dishonesty includes, but its not limited to, cheating, plagiarism, fabrication, or information or citations, facilitation of acts of academic dishonesty by others, unauthorized possession of examinations, submitting work of another person or work previously used without informing the instructor, and tampering with the academic work of other students. Failure to comply with this rule could result in failing the course and receiving a grade of “XF” reported on your transcript. For additional information please visit (www.bk.psu.edu/Academics/integrity.htm). 4.

Course Description:

1The aim of this course is to introduce basic concepts of international finance, and to bridge the gap between theory and practice, not to mention its ties to the global business environment and how multination corporations operate (MNCs). Topics of study include foreign exchange (FX), FX markets, FX instruments, FX risk, hedging of these risks, international debt and equity markets, etc. This course provides an understanding of the basic terminology, including international financial markets, exchange rate determination, currency derivatives, role of government policies on exchange rates, and international trade, international arbitrage, connections between inflation, interest rates, and exchange rates, interest rate parity, purchasing power parity, managing exchange rate risks long, direct foreign investment, multinational capital budgeting, multinational cost of capital, international corporate governance and control, country risk analysis, long-term and short-term asset and liability management, international cash management structure, and importance of international finance for corporations. It will also help enhance analytical and critical thinking skills.

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Course Objectives: By the end of the course, the students should be able to understand: Multinational Financial Management International Flow of Funds and Markets. Exchange Rate Determination. Currency Derivatives.

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International Arbitrage and Interest Rate Parity. Forecasting Exchange Rates. Direct Foreign Investment. Multinational Capital Budgeting. International Corporate Governance and Control. Short-Term Financing International Cash Management

Methods of Instruction:

Lectures, Power-Point Presentations, Work Problems, and Class Discussions are part of traditional lectures. Supplemental materials will include You Tube Postings, videos of current events, and newspaper articles. Class Participation is extremely important. Class Conduct: Professional behavior is expected during the class. No hand held devices are permitted during the class including cell phones, Ipods, GPS, pagers the only exception is a regular calculator. No hand held devices are permitted during the class including cell phones, Ipods, GPS, pagers with the only exception regular and financial calculator.

 PLEASE BE RESPECTFUL OF OTHER STUDENTS IN THE CLASS 7. Evaluation Criteria: ALL ASSIGNMENTS WILL BE CANVAS ADMINISTERED with the exception of Final Presentation “GRADES ARE MERIT BASED NOT NEED BASED” Six quizzes

120 points (one will be dropped)

Six home assignments

60 points (one will be dropped)

Eight Current Event Discussion Board Postings & FOLLOW UP COMMENTS ON CANVAS

32 points

Two small projects (Excel usage-20 pts each)

40 points

One big project

42 points

Presentations

16 points

One Mid-term Exam

50 points

Semi-cumulative final

50 points

Total Semester points

410points

***Bonus points (OPTIONAL) (20) are given for participating in various classroom activities during the semester and attending all classes  Student participation (10 pts.)  Pop quizzes and in-class problem solving sessions. (10 pts.) Project: Smaller papers are topics covered in the classroom where we delve into excel usage. Bigger project: This should be a formal term paper. The idea is to research a topic that is timely and applicable to international finance. It will involve some theory and empirics. Please cite all the papers and resources used Word count should be at least 2,500 words not counting graphs, charts, tables etc. Mid-term Exam: The exams will be a combination of multiple-choice questions, problems and short discussion questions. Make-up exams will not be allowed except in situations such as: (1) the reason for missing the quiz/exam is beyond the student's control (such as a medical excuse, jury duty, death in the family or automobile accident), or (2) the student receives prior consent from the instructor for missing the quiz/exam based on a non-frivolous excuse (such as job interview or out-of-town job related travel). In all cases, the student should inform me through email or telephone of the situation before the exam time. Later, he/she should provide a written and signed statement concerning the reason for missing the exam along with the appropriate original documentation, if appropriate. The instructor reserves the right to change the format of the make-up tests. Usually, any curve that was applied to the original test does not apply to the make-up test. Students should follow the above procedures in order not to be assigned zero in the missed tests.

Following are the letter grade and the respective range in percentages with 500 being 100 percent.

A: 93 -100 A- :89.0 - 93 B+: 86 – 89.0 B: 83:86 B-: 79-83 C+:74:79 C: 69.0:74 D: 60-69.0 F: < 60 8.

Class Policies:

Class Participation: Students are strongly encouraged to participate in the discussions and ask questions. Students missing more than 5 classes should seriously reconsider their commitment to this course, as missing classes is highly correlated with overall poor performance. Students may

be asked to produce evidence of their class notes and work efforts when seeking my advice on improving their performance. In case you did not attend, you are responsible for any announcements and all the materials covered in class. Please bring textbook, paper,

pencil/pen, laptop & calculator to class. Calculators: This course involves computations. You are expected to bring a calculator to each class. Please have your own calculator (sharing is not permitted during exams). Class Conduct: Students are expected to be in class on time. If a student plans to leave earlier than scheduled, he/she should notify me before the class starts. Professional behavior is expected during the class. Students are required to set phone, pager, etc. to silent mode or turned off at the start of each class out of consideration for other students and the instructor. PSU Email Account: All students are required to have an active Penn State email account. Course material is available online via CANVAS. All email correspondence from me will be to your PSU account. IMPORTANT! In the event of a class cancellation by the University, or by the instructor- the assignment due on the day of the cancelation will be due at the NEXT CLASS MEETING. If an exam was cancelled due to inclement weather or instructor illness – the exam will be given during the NEXT CLASS MEETING or otherwise notified.

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NEED HELP?

Student Disability Resources All students face obstacles that may interfere with academic success. If you have visible or invisible disability related need for reasonable academic adjustments in this course or require academic support, please contact Michelle Strawley, Disability Services Coordinator, at [email protected] or 610-3966410. Her office is located in room 153 Franco. For further information regarding The Office for Disability Services, please visit the web site at www.equity.psu.edu/ods The Career Services Please visit the career services at https://berks.psu.edu/career-services for career related questions, and internship information related to your field The Writing Center is a free resource for members of the Penn State Berks community. Appointments are strongly recommended, but walk-ins will be accepted on a limited, first-come firstserved basis. For more information or to make an appointment, call (610) 396-6333 or (610) 3966029, please visit the web site at https://berks.psu.edu/writing-center or stop by Franco 167. The Learning Center is a free resource for members of the Penn State Berks community. Walkins are welcome. Visit the web site at https://berks.psu.edu/learning-center.

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The textbook will be followed somewhat closely and the class will be notified in advance about the topics that will be discussed in the next lecture

Important Dates to Consider LATE DROP DEADLINE November 12 THANKSGIVING HOLIDAY NOV 21 – NOV 27 11. The following is a TENTATIVE road map for the semester and the instructor has the right to change the contents based on students’ needs and time necessary to get through the information . First week of class Chap.1 (Introduction, Multinational Financial Management: An Overview) and Trade Theories. Second week of class Chap. 2 (International Flow of Funds) Third week of class & introduce Chap. 3 (International Financial Markets) Fourth week of class Chap. 4 (Exchange Rate Determination.) Fifth & Sixth week of class Chap. 5 (Currency Derivatives.) Seventh week of class Chap. 6 (Government Influence on Exchange Rates) Continue Chap. 6 & Introduce Chap. 7 (International Arbitrage and Interest Rate Parity) Eight week of class of class Chap. 8 (Relationships among Inflation, Interest Rates, and Exchange Rates)

Midterm: October 11 Ninth week of class start Chap. 9 (Forecasting Foreign Exchanges) Tenth & Eleventh week of class continue Chap 9 & introduce Chap. 10 (Measuring Exposure to Exchange Rate Fluctuations) Twelfth & Thirteenth week of class Chap. 11 (Managing Transaction Exposure) & Chap. 12 (Managing Economic Exposure & Translation Exposure)

Term Paper Topic to be Selected by October 18

Twelfth week of class Chap. 13 (Direct Foreign Investment)

First Draft due by November 1 Thirteenth week of class Chap. 14 (Multinational Capital Budgeting) THANKSGIVING BREAK

Project to be submitted by November 29 Fourteenth week (Open Topics) Fifteenth week of class (Student Presentations) December 6 Final Exam: As provided by the school roster.

12.

IMPORTANT WEB SITES FOR REFERRAL

General Financial Data:

Government Web Sites

http:// bloomberg.com

http://www.sec.gov/edgar.shtml

http://cnbc.com

http://www.federalreserve.gov/econresdata/default.htm

www.google.com/finance

http://research.stlouisfed.org/fred2/

http://money.msn.com/

http://www.irs.gov/

International Organizations Exchange Web Sites:

http://www.worldbank.org/

http://www.amex.com

http://www.imf.org/

http://www.cboe.com http://www.cme.com

https://www.weforum.org/...