INTERNATIONAL FINANCE

Session: Spring 2016

Course Instructor: Dr. Saadia Irshad
Classes: MBA 1.5 2ND semester, MBA 3.5 6th and 7th semester
Schedule: Tuesday, Wednesday and Thursday (3:00 pm 4:00 pm)

Course Description: This course focuses on international financial

management and international trade. Topics in financial management,
viewed primarily from the perspective of managers doing business overseas,
include the management of foreign exchange exposure, foreign direct
investment decisions, and multinational capital budgeting. Other topics
covered include trends in international banking, the balance of payments,
the determination of exchange rates, the LDC debt crisis, and the Asian
meltdown. We will also examine the challenges and problems faced by firms
planning on doing business in Western Europe, Eastern Europe, the Far East,
Mexico, Canada, South America, Africa, India, and other regions during the
next decade.

Core Text:
1.Madura, International Financial Management, 11th Ed. Thomson/Southwest
2.BEKAERT and HODRICK, International Financial Management, Prentice Hall,
2011

Teaching resources:
- power point slides prepared by the authors of the textbooks and by the
professor
- Journal, magazine and newspaper articles on current events

Week-Wise Lecture Topics:

Class 1 Multinational Financial Management: An Overview
Class 2 - International Trade Flows
Class 3 - How Foreign Exchange is Traded; International Money, Credit, Bond
and Stock Markets
Class 4 - Exchange Rate Determination
Class 5 Exchange Rate Policy and the Asian Currency Crisis
Class 6 Currency Derivatives
Class 7 - Interest Rate Parity
Class 8 - More Parity Conditions
Class 9 - Managing Transaction Exposure
Class 10 - Managing Economic Exposure
Class 11 Direct Foreign Investment
Class 12 Country Risk Analysis
Class 13 Multinational Capital Budgeting
Class 14 Multinational Restructuring
Class 15 Multinational Cost of Capital and Capital Structure
Class 16 Long-Term Financing
Class 17 Short-Term Financing
Class 18 Financing International Trade
Class 19 International Cash Management

This course outline is only tentative. Depending upon our progress,

some topics may be covered in greater depth and for longer periods, some
topics may be given less coverage and less time, some topics may be
dropped altogether and some other reading may be included.
Note:
1. Students are free to consult any other book or material on the
relevant topics for better comprehension. Sharing other resource
material is appreciated.

2. Request for change in deadlines of various class activities,

assignments and presentations will not be entertained once the
deadline is set.

3. There will be No Retake of Quizzes.

Course Grading and Evaluation:

The grading will be done as per the policy of the university, however, the
final grade for the course will be determined based on the total points
accumulated in the below areas with following weightage:

Final Examination (45%)

Mid-Term Examination (35%)
Quiz/Assignments/Team Project (20%)