Master of Arts in International Finance and Banking (English) without thesis
Master	TR-NQF-HE: Level 7	QF-EHEA: Second Cycle	EQF-LLL: Level 7

General course introduction information

Course Code:

EMBA553

Course Name:

International Financial Management

Course Semester:

Spring
Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	8

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Department Elective

Course Level:

Master

TR-NQF-HE:7. Master`s Degree

QF-EHEA:Second Cycle

EQF-LLL:7. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Prof. Dr. GÖKÇE TUNÇ

Course Lecturer(s):

Course Assistants:

Course Objective and Content

Course Objectives:

The main objective of this course is to introduce the topics of globalization of the World economy; evolution of the international monetary system; European monetary system; fixed versus flexible exchange rate regimes; Balance-of-payments accounting; balance-of-payments accounts; the foreign exchange market; the spot market and forward market; international parity relationships and forecasting foreign exchange rates; interest rate parity, purchasing power parity, the Fisher effects; international bond market; international equity market.

Course Content:

Globalization of the World economy; evolution of the international monetary system; European monetary system; fixed versus flexible exchange rate regimes; Balance-of-payments accounting; balance-of-payments accounts; the foreign exchange market; the spot market and forward market; international parity relationships and forecasting foreign exchange rates; interest rate parity, purchasing power parity, the Fisher effects; international bond market; international equity market.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) • Introduce the various types of international monetary systems under which the world economy can function and has functioned at various times
2) • Describe the importance of balance of trade and balance of payments to the development of macroeconomic policy.
3) • Identify opportunities for arbitrage and discuss methods to exploit these opportunities in the foreign exchange market.
4) • Describe the organization of the foreign exchange market and distinguish between the spot and forward markets.
5) • Define several key international parity relationships, such as interest rate parity and purchasing power parity and judge whether international parity conditions are met.
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

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

Sources

Course Notes / Textbooks:	International Financial Management Cheol S. Eun, Bruce G. Resnick, Tuugi Chuluun McGrawHill, 9th edition, 2021 ISBN-13: 978-1-260-01387-0
References:	International Financial Management Cheol S. Eun, Bruce G. Resnick, Tuugi Chuluun McGrawHill, 9th edition, 2021 ISBN-13: 978-1-260-01387-0

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4	5
Program Outcomes

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

Program Outcomes

Level of Contribution

Learning Activity and Teaching Methods

Lesson
Group study and homework
Homework
Project preparation

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)
Homework
Individual Project

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Midterms	1	% 40
Final	1	% 60
total		% 100
PERCENTAGE OF SEMESTER WORK		% 40
PERCENTAGE OF FINAL WORK		% 60
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Workload
Course Hours	16	48
Study Hours Out of Class	16	64
Project	3	15
Homework Assignments	4	8
Quizzes	2	1
Midterms	1	15
Final	1	22
Total Workload		173