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BA 445 - International Financial
Management
Spring 2009
Office: Bexell 418C
Phone: 541-737-6005
E-mail: jimmy.yang@bus.oregonstate.edu
Office hours: Monday 8:50-9:50, Tuesday 2:30pm-3:30pm, Wednesday 12:50pm-1:50pm and by appointment
Course credits: 4
credit hours
Prerequisites: BA347 (International Business) and BA440 (Corporate Finance) or BA342 (Advanced Financial Management) 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 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:
- Required textbook: Moffett, Stonehill, and Eiteman, Fundamentals of Multinational Finance, Third Edition, Pearson Education, 2009.
- 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:
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 Disability Access
Services (DAS). Students with accommodations approved through DAS 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 DAS should contact DAS immediately at 737-4098.
Link to Student Conduct Regulation of Academic Dishonesty i.e., cheating and plagiarism http://oregonstate.edu/admin/stucon/achon.htm
Tentative Schedule:
|
Date |
Topic |
Chapter(s) |
|
Mar 30 |
Introduction |
1, 2 |
|
Apr
1 |
Balance of Payments |
4 |
|
Apr 6 |
International Parity (1) |
6 |
|
Apr 8 |
International Parity (2) |
6 |
|
Apr 13 |
Foreign Exchange Rate |
3, 7 |
|
Apr 15 |
Foreign Exchange Market |
5 |
|
Apr 20 |
Transaction Exposure |
9 |
|
Apr 22 |
Operating Exposure |
10 |
|
Apr 27 |
Translation Exposure |
11 |
|
Apr
29 |
Exam #1 |
|
|
May 4 |
Global Cost of Capital |
12 |
|
May 6 |
Raising Global Capital |
13, 14 |
|
May 11 |
Foreign Direct Investment |
17, 18 |
|
May 13 |
Hedging (1) |
15 |
|
May 18 |
Hedging (2) |
8 |
|
May 20 |
Tax Management |
21 |
|
May 25 |
Memorial Day Holiday |
|
|
May 27 |
Exam #2 |
|
|
Jun
1 |
Presentation (1) |
Group Project |
|
Jun 3 |
Presentation (2) |
Group Project |
|
Jun 8 |
Written group project due at |
|