Week |
Subject |
Related Preparation |
1) |
• Define the course
• Describe what multinational corporation (MNC) is
• Explain why it is important to study international finance
• Distinguish international finance from domestic finance
• Understand the nature and benefits of globalization
• Explain why MNCs are the key players in international economic competition today
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None |
2) |
• Identify the stages of corporate expansion overseas by which companies gradually become MNCs
• Identify the advantages of being multinational, including the benefits of international diversification
• Describe the general importance of financial economics to multinational financial management
• Explain the theory of comparative advantage
• Discuss why do firms become multinational
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Review the Syllabus.
Complete the Library Orientation Course. Instructor to verify completion.
Read in Eun, Resnick,Chuluun (2021) chapter 1 on pages 3-28
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3) |
• Introduce the various types of international monetary systems under which the world economy can function and has functioned at various times
• Discuss historical development of the world’s international monetary systems from the early 1800s to the present
• Discuss European Monetary Union |
Read in Eun, Resnick,Chuluun (2021) chapter 2 on pages 29-52 and be prepared to discuss in class. |
4) |
• Explain the origins of worldwide currency crises
• Recognize the lessons from the Asian currency crisis, Mexican peso crisis, Argentine peso crisis
• Compare and contrast fixed and flexible exchange rate regimes
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Read in Eun, Resnick,Chuluun (2021) chapter 2 on pages 52-64 and be prepared to discuss in class. |
5) |
• Identify balance-of-payment concepts and accounting
• Introduce how BOP is constructed and how balance of payments data may be interpreted
• Discuss the reasons why to study BOP
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Read in Eun, Resnick,Chuluun (2021) Chapter 3 on pages 65-76 and be prepared to discuss in class.
Solve and submit assigned homework in O’learn platform by next week’s lesson.
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6) |
• Distinguish between the current account, financial account and the official reserves account and describe the links among these accounts
• Calculate a nation’s BOP accounts from data on its international transactions
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Read in Eun, Resnick,Chuluun (2021) chapter 3 on pages 76-87 and be prepared to discuss in class. |
7) |
• Describe the organization of the foreign exchange market
• List FX market participants
• Distinguish between the spot and forward markets
• Explain the institutional framework within which exchange rates are determined.
• Understand how to quote exchange rates
• Learn different methods of quoting exchange rates
• Calculate the bid-ask spread
• Explain quoting cross exchange rates
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Read in Eun, Resnick,Chuluun (2021) chapter 5 on pages 119-139 and be prepared to discuss in class.
Read the case study at the end of the chapters and answer the questions, be prepared to discuss in class.
Solve and submit assigned homework in O’learn platform by next week’s lesson.
Preparation for the quiz
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8) |
• Distinguish between different methods of foreign exchange quotation
• Conversion from one method of quotation to another
• Identify profitable currency arbitrage opportunities and calculate the profits associated with these arbitrage opportunities
• Read and explain foreign currency quotations as they appear in the Wall Street Journal
• Calculate forward premiums and discounts
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Read in Eun, Resnick,Chuluun (2021) chapter 5 on pages 139-151 and be prepared to discuss in class.
Preparation for the quiz
Solve and submit assigned homework in O’learn platform by next week’s lesson.
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9) |
• Measurement of learning outcomes
• Evaluate students via mid-term exam
• Discuss the Midterm Exam.
• Explaining the specifics of the Midterm Exam.
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Read in Eun, Resnick,Chuluun (2021) chapter 6 on pages 151-161 and be prepared to discuss in class.
Read the case study at the end of the chapters and answer the questions, be prepared to discuss in class.
Preparation for the midterm exam
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10) |
• Describe the core financial theories surrounding the determination of exchange rates.
• Understand several key international parity relationships, such as interest rate parity and purchasing power parity
• Explain the meaning of the “law of one price” and its importance to the study of international finance
• Discuss the fisher effect and international fisher effect
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None |
11) |
• Discuss the theory of interest rate parity
• Discuss how arbitrage links goods prices and asset returns internationally
• Explain covered interest arbitrage
• Calculate riskless profit in the condition of covered interest arbitrage
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Read in Eun, Resnick,Chuluun (2021) chapter 6 on pages 162-185 and be prepared to discuss in class.
Solve and submit assigned homework in O’learn platform by next week’s lesson.
Preparation for the quiz
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12) |
• Distinguish between foreign bonds and Eurobonds which together make up international bond market
• Discuss the advantages of sourcing funds from the international bond market as opposed to raising funds domestically.
• Discuss major types of international bonds
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Read in Eun, Resnick,Chuluun (2021) chapter 12 on pages 321-339 and be prepared to discuss in class.
Read the case study at the end of the chapters and answer the questions, be prepared to discuss in class.
Solve and submit assigned homework in O’learn platform by next week’s lesson.
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13) |
• Analyze assigned country’s BOP
• Explain the reasons of BOP account changes
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Read in Eun and Resnick (2014) chapter 13 on pages 324-347 and be prepared to discuss in class. |
14) |
• Review topics discussed up to the end of the semester |
Preparation for the final exam |
15) |
• Evaluate students via final exam.
• Assess the student’s performance throughout the semester.
• Analyze the final exam results in terms of further amelioration of the course.
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None |
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Program Outcomes |
Level of Contribution |
1) |
Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems. |
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2) |
Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. |
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3) |
Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.) |
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4) |
Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively. |
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5) |
Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems. |
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6) |
Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. |
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7) |
Ability to communicate effectively i Turkish, both orally and in writing; knowledge of a minimum of one foreign language. |
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8) |
Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself. |
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9) |
Awareness of professional and ethical responsibility. |
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10) |
Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development. |
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11) |
Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions. |
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