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
|
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
|
Review the Syllabus.
Complete the Library Orientation Course. Instructor to verify completion.
Read in Eun, Resnick,Chuluun (2021) chapter 1 on pages 3-28
|
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
|
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
|
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.
|
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
|
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
|
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
|
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
|
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.
|
9) |
• Measurement of learning outcomes
• Evaluate students via mid-term exam
• Discuss the Midterm Exam.
• Explaining the specifics of the Midterm Exam.
|
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
|
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
|
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
|
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
|
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
|
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.
|
13) |
• Analyze assigned country’s BOP
• Explain the reasons of BOP account changes
|
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.
|
None |
|
Program Outcomes |
Level of Contribution |
1) |
Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. |
5 |
2) |
Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. |
5 |
3) |
Explain the evolution of financial markets and institutions in a historical context and define how they operate. |
5 |
4) |
Recognise the basic principles and regulations in the financial sector. |
4 |
5) |
Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. |
3 |
6) |
Recognise, interpret and discuss the current economic issues both at the national and global levels. |
5 |
7) |
Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. |
3 |
8) |
Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. |
5 |
9) |
Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. |
2 |