Industrial Engineering (English) | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code: | FNS306 | ||||||||
Course Name: | Current Issues in Global Economy | ||||||||
Course Semester: | Spring | ||||||||
Course Credits: |
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Language of instruction: | TR | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | University / Foreign Language | ||||||||
Course Level: |
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Mode of Delivery: | Face to face | ||||||||
Course Coordinator : | Dr.Öğr.Üyesi TURGAY MÜNYAS | ||||||||
Course Lecturer(s): |
Dr.Öğr.Üyesi TURGAY MÜNYAS |
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Course Assistants: |
Course Objectives: | • Introduces important macroeconomic indicators and tools for the analysis of recent economic phenomena. • Introduces the concepts of globalization and liberalization in financial markets to analyze key economic issues in a global context. • Defines the concept of 'financial innovation/innovation' in relation to the key issues and problems of the global economic situation. • Analyzes various economic events that create global irregularities in financial markets. |
Course Content: | This course covers macroeconomic data analysis; sector analysis; global markets; international investment risks; interest parity and carry trade; mutual funds; pension funds; investment banking; financial crises; subprime mortgage market crisis; securitization; collateralized debt obligation; the spread of financial crises; cross-border capital movements; It includes issues of global financial imbalances. |
The students who have succeeded in this course;
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Week | Subject | Related Preparation |
1) | • Syllabus • GDP, GNP and national income concepts • Employment data, inflation, interest rates, budget balance • Supply and demand-side shocks • Monetary policy and fiscal policy | Review of the syllabus. Reading:, in Bodie-Kane-Marcus, chapter 17, p. 548-582. |
2) | • The concept of economic fluctuations • Circular businesses and defensive sectors • Main, random and delayed indications • Explaining the concept of sector/industry • Industry circularity and operating leverage • Sector rotation and industry life cycle: phases of inception, consolidation, maturity and relative decline | Repeat the lesson. Reading: Bekaert-Hodrick, chapter 1, p. 1-36. |
3) | • Globalization of financial markets • Corporate governance and cross-border capital movements within the framework of multinational companies • Role of international banks, investors and governments in global markets • Discussing about globalization and multinational companies | Repeat the lesson Reading: Bodie-Kane-Marcus, p. 863-902. |
4) | • Global markets: Developed and Developing countries • Exchange rate risk • Policy risk • International portfolio diversification | Repeat the lesson. Reading: Bekaert-Hodrick, chapter 14, p. 475-521. |
5) | • Country risk factors: Financial and economic risk • Political risk factors: expropriation, contract denial/termination, taxes and regulations, currency controls, corruption, political turmoil and terrorism • The debt crisis and the Brady Plan • Political risk and capital budgeting: restatement of expected cash flows and discount factor | Repeat the lesson. Reading: Bekaert-Hodrick, chapter 14, p. 475-521. |
6) | • Country risk ratings • Risk types and political risk analysis • Rating systems: World Bank Governance Indicators • Country credit risk widths (spreads) • Discussing the impact of country and political risk on growth and foreign investment | Repeat the lesson. Reading: Copeland, chapter 3, p. 84-115. |
7) | • Definition of Uncovered Interest Rate Value (UIRV) • Definition of Implicit Interest Rate Value (IRV) • Discussing the implications for UIRV • Discussing the implications for IRV • Cary trade dynamics: borrowing currency, target currency, importance of interest differences • Carry trade and empirical findings | Repeat the lesson. Reading: Mishkin and Eakins, chapter 20, p. 489-512 |
8) | Midterm Exam | None |
9) | • Advantages of mutual funds • Ownership concept in mutual funds • Open and closed-end mutual funds • Net asset value and calculation • Structure of hedge funds • Insurance management • Types of pension funds | Repeat the lesson. Reading: Mishkin and Eakins, chapters 20 and 21, p. 489-512 |
10) | • Definition of investment banks • Definition of the concepts of broker and distributor/dealer • Stock and bond underwriting in investment banking • Share supply; mergers and acquisitions • Brokerage activities and sale of shares • The difference between stock brokerage companies and commercial banking • The difference between venture capital and private equity | Repeat the lesson. Reading: Mishkin, chapter 12, p. 281-313 |
11) | • Financial Innovation • Shadow banking • Securitization • Deregulation and ethical standards in financial markets • Historical development of banking • International banking | Repeat the lesson. Read the various materials to be distributed. |
12) | • Global Financial Crisis • Too big to sink concept • Various simulation studies for financial spillover and measurement • Micro and macro prudential policies • Financial networks | Repeat the lesson. |
13) | • Repetition: Macroeconomic indicators and sector analysis • Repetition: Globalization and multinational corporations • Repetition: International investments and portfolio diversification • Repetition: Country risk • Repetition: Political risk | Repeat the lesson. |
14) | • Repetition: UIRV and IRV • Repetition: Carry trading strategy and implications • Repetition: Mutual funds and pension funds • Repetition: Investment banking • Repetition: Securitization and collateralized debt obligation • Repetition: The Global Financial Crisis and the Financial Contagion | None |
15) | Final Exam | None |
Course Notes / Textbooks: | Financial Markets and Institutions Frederick S. Mishkin and Stanley G. Eakins, 7th ed., 2012 ISBN-13: 978-0-13-213683-9 The Economics of Money, Banking and Financial Markets Frederick Mishkin, 10th ed., 2013 ISBN-10: 0-273-76673-8 • ISBN-13: 978-0-273-76573-8 INVESTMENTS Zvi Bodie-Alex Kane-Alan J. Marcus, 9th ed., 2011 ISBN 978-0-07-353070-0 International Financial Management Geert Bekaert and Robert Hodrick, 2nd ed., 2012 ISBN-13: 978-0-13-216276-0 ISBN-10: 0-13—216276-8 |
References: | Exchange Rates and International Finance Laurance S. Copeland, 6th ed., 2014 ISBN: 978-0-273-78604 |
Learning Outcomes | 1 |
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Program Outcomes | ||||||||||
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. | ||||||||||
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | ||||||||||
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.) | ||||||||||
4) Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively. | ||||||||||
5) Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems. | ||||||||||
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | ||||||||||
7) Ability to communicate effectively i Turkish, both orally and in writing; knowledge of a minimum of one foreign language. | ||||||||||
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. | ||||||||||
9) Awareness of professional and ethical responsibility. | ||||||||||
10) Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development. | ||||||||||
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. |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
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. | |
2) | Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | |
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.) | |
4) | Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively. | |
5) | Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems. | |
6) | Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | |
7) | Ability to communicate effectively i Turkish, both orally and in writing; knowledge of a minimum of one foreign language. | |
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. | |
9) | Awareness of professional and ethical responsibility. | |
10) | Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development. | |
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. |
Expression | |
Brainstorming/ Six tihnking hats | |
Individual study and homework | |
Lesson | |
Reading | |
Homework | |
Q&A / Discussion |
Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing) | |
Homework |
Semester Requirements | Number of Activities | Level of Contribution |
Homework Assignments | 1 | % 20 |
Midterms | 1 | % 35 |
Final | 1 | % 45 |
total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 55 | |
PERCENTAGE OF FINAL WORK | % 45 | |
total | % 100 |
Activities | Number of Activities | Workload |
Course Hours | 16 | 48 |
Study Hours Out of Class | 16 | 80 |
Homework Assignments | 4 | 12 |
Quizzes | 4 | 2 |
Midterms | 1 | 15 |
Final | 1 | 22 |
Total Workload | 179 |