Week |
Subject |
Related Preparation |
1) |
• Syllabus
• Discuss Library Orientation Course, Instructor to verify completion
• What’s Special about “International” Finance?
• Goals for International Financial Management in accordance with the ethical considerations throughout the world.
• Globalization of the World Economy
• Evaluation of Multinational Corporations
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Read the syllabus
Read of Seyidoğlu (2013), Chapter 1 |
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
• Theory of Comparative Advantage
• What is Different about Global Financial Management?
• Market Imperfections
• Globalization Process
• The Process of Overseas Expansion by Multinationals
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Reading of Seyidoğlu(2013), Chapter 4.
Answer the research questions at the end of the chapter and preparing for class discussion.
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3) |
• Structure and Functions of the Foreign Exchange Market
• Traders of the foreign exchange market
• Spot exchange rate quotation
• Buying-selling exchange rate margin
• Spot currency transactions
• Alternative expressions of cross rates |
Reading of Seyidoğlu(2013), Chapter 4.
Answer the research questions at the end of the chapter and preparing for class discussion. |
4) |
• Triangle (Three-ended) arbitrage
• Spot market microstructure
• Forward exchange rate quotation
• Long and short forward positions
• Forward cross rates
• Swap transactions
• Forward premium |
Reading of Seyidoğlu(2013), Chapter 6.
Answer the research questions at the end of the chapter and preparing for class discussion. |
5) |
• Interest rate parity and the law of one price
• Purchasing power parity
• Fisher effect
• International Fisher effect |
Reading of Seyidoğlu(2013), Chapter 5.
Answer the research questions at the end of the chapter and preparing for class discussion.
Prepare for the quiz. |
6) |
• Interest rate parity
• Guaranteed interest rate arbitrage
• Determination of interest rate parity and exchange rate
• Reasons for deviation from interest rate parity
• Estimation of exchange rates
• Effective market approach
• Fundamental analysis approach
• Technical analysis approach
• Performance of estimation methods
• Quiz |
Reading of Seyidoğlu(2013), Chapter 7.
Answer the research questions at the end of the chapter and preparing for class discussion.
Preparation for the midterm exam. |
7) |
Midterm Exam |
None |
8) |
• Features of futures contracts
• Currency futures markets
• Features of FX futures contracts
• Similarities and differences between foreign exchange futures and forward contracts
• Futures Contracts: Some Preliminaries |
Reading Seyidoğlu(2013), Chapter 8.
Answer the research questions at the end of the chapter and prepare for class discussion. |
9) |
• Terminology related to options
• Currency option markets
• Quotation and prices of currency options
• Risk and return in option transactions
• Value and pricing of the option |
Reading of Seyidoğlu(2013), Chapter 9.
Answer the research questions at the end of the chapter and preparing for class discussion.
Prepare for the quiz. |
10) |
• Interest rate risk
• Managing interest rate risk
• Quiz |
Reading of Seyidoğlu(2013), Chapter 10.
Answer the research questions at the end of the chapter and preparing for class discussion. |
11) |
• Types of currency exposure
• Hedging strategy with forward market
• Money market hedge strategy
• Hedging strategy with options markets |
Reading Seyidoğlu(2013), Chapter 11.
Answer the research questions at the end of the chapter and preparE for class discussion. |
12) |
• Risk sharing agreements
• Determining the costs of using different hedging techniques
• Defining the operational effect and understanding its difference from the transaction effect
• Calculation of transaction effect in certain exchange rate change and cost, income scenarios
• Determination of appropriate marketing, production and financing strategies to combat the economic consequences of exchange rate changes.
• Impacts of exchange rate risk |
Reading Seyidoğlu(2013), Chapter 11
Answer the research questions at the end of the chapter and prepare for class discussion. |
13) |
• Identification of the accounting impact
• Define the four basic conversion methods
• Calculation of accounting impact with different methods
• Understanding the management of accounting impact
• Conversion methods
• Transformation effect and economic reality
• Development of accounting hedge strategy |
Reading of Seyidoğlu(2013), Chapter 3.
Answer the research questions at the end of the chapter and prepare for class discussion. |
14) |
• Definition of balance of payments
• Structure of the balance of payments
• Basic account groups of the balance of payments
• Balancing of balance of payments balance |
Prepare for the final exam |
15) |
Final Exam |
None |
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Program Outcomes |
Level of Contribution |
1) |
explain the essential body of knowledge in the area of international trade, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models. |
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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. |
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3) |
integrate the theories of international trade with the real life functions in changing global business world and interpret the major recent developments in the world trading system and also be able to evaluate interaction between economic development and foreign trade. |
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4) |
have the vision of international business and trade system, and also have knowledge of the logistics management associated with foreign trade and also explain foreign trade financing products and services that are issue of foreign trade, insurance and risks |
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5) |
discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures. |
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6) |
define the features and property of products and services that are the subjects of foreign trade, quality and standards in national and international level. |
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7) |
communicate in written and oral English with people from diverse backgrounds, and have the English proficiency to follow and interpret the global dynamics in the areas of international trade |
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8) |
recognize the major instruments of trade policy such as tariffs, non-tariff barriers, state aids, international agreements, international organizations and institutions, e-trade, and their effects on foreign trade policy. |
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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
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