NOTE: BA 445 is not offered during Summer 2008.
These course materials are for reference purposes only.

BA 445 - International Financial Management
Spring 2008

Instructor: Jimmy Yang

Office: Bexell 418C

Phone: 541-737-6005

E-mail: jimmy.yang@bus.oregonstate.edu

Office hours: Tuesday 9:00-10:00, Wednesday 2:30pm-3:30pm and Thursday 10:00- 11:00 and by appointment

Course credits: 4 credit hours, course meets 10:00am-11:50am on Mondays and Wednesdays

Prerequisites: BA340 (Finance), BA347 (International Business), and BA440 (Corporate Finance) or ECON440 (International Trade and Policy).

Blackboard: Please login with your ONID username and password to your Blackboard account through the following website. https://my.oregonstate.edu/webapps/login My announcements and class materials will be posted on the Blackboard. You are all encouraged to utilize this system to post your questions, discuss class-related issues, or communicate with your group, the whole class or me.

Learning Resources:

1. Required textbook: Moffett, Stonehill, and Eiteman, Fundamentals of Multinational Finance, Third Edition, Pearson Education, 2009.
2. Required tool: Financial Calculator (Texas Instruments BA II Plus or an equivalent)

Course Objectives: The goal of this course is to teach students how to be effective global financial managers. To achieve this goal, the course focuses on important topics that include the fundamentals of the macroeconomic environment of international financial management, the financial environment in which the multinational firm and its managers must function, and the foreign exchange management and financial management in a multinational firm.

Measurable Student Learning Outcomes: Upon completion of this course, students should be able to:

• Understand the global financial environment and the globalization process experienced by multinational corporations.
• Identify the basic factors affecting exchange rates in a floating exchange rate system and describe the five key theoretical relationships among spot exchange rates, forward exchange rates, inflation rates, and interest rates that result from international arbitrage activities.
• Distinguish the three major foreign exchange exposures experienced by multinational corporations, analyze the pros and cons of hedging foreign exchange transaction exposure, and evaluate strategic alternatives to managing these exposures.
• Demonstrate how a firm can use the global capital market to minimize its cost of capital and maximize its access to capital.
• Define interest rate risk and demonstrate how it can be managed by various financial instruments, namely forward rate agreements, interest rate futures and options, and interest rate swaps.
• Demonstrate why firms transition from the international trade stage to become full-blown multinational corporations, how they choose where to locate, and how they determine their modes of foreign investment.

Assignments: Textbook practice problems and some other assignments, perhaps covering materials not covered in the text, will be given in class or posted on the Blackboard. Assignments will NOT be collected. Answers will be available on the Blackboard one week after assignments are posted. You are encouraged to collaborate when doing the assignments.

Evaluation of Student Performance:

• Group Project: Detailed description of the group project will be posted on the Blackboard during the second week of the term.
• Exams: Two exams will be given. If you miss any exam without prior permission, a grade of zero will be given for that exam. It is your responsibility to schedule a make-up exam within one week after the scheduled exam.
• Grade Determination: BA445

Written group project 20%

Group project presentation 10%

Exam #1 35%

Exam #2 35%

Statement Regarding Students with Disabilities: Accommodations are collaborative efforts between students, faculty and Services for Students with Disabilities (SSD). Students with accommodations approved through SSD are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through SSD should contact SSD immediately at 737-4098.

Link to Statement of Expectations for Student Conduct: i.e., cheating policies http://oregonstate.edu/admin/stucon/achon.htm

Tentative Schedule:

Date	Topic	Chapter(s)
Mar 31	Introduction	1, 2
Apr 2	Balance of Payments	4
Apr 7	International Parity (1)	6
Apr 9	International Parity (2)	6
Apr 14	Foreign Exchange Rate	3, 7
Apr 16	Foreign Exchange Market	5
Apr 21	Transaction Exposure	9
Apr 23	Operating Exposure	10
Apr 28	Translation Exposure	11
Apr 30	Exam #1 (group midterm)	Time and room TBA
May 5	Global Cost of Capital	12
May 7	Raising Global Capital	13, 14
May 12	Foreign Direct Investment	17, 18
May 14	Hedging (1)	15
May 19	Hedging (2)	8
May 21	Cross-Border M&A	Web Chapter
May 26	Memorial Day	Holiday
May 28	Exam #2 (group midterm)	Time and room TBA
Jun 2	Presentation (1)	Group Project
Jun 4	Presentation (2)	Group Project
Jun 9	Written group project due at 4 PM