| International Finance and Banking | |||||
| Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 | ||
| Course Code: | FNS306 | ||||||||
| Course Name: | Küresel Ekonomide Güncel Konular | ||||||||
| 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: | Faculty Elective | ||||||||
| Course Level: |
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| Mode of Delivery: | Face to face | ||||||||
| Course Coordinator : | Assoc. Prof. TURGAY MÜNYAS | ||||||||
| Course Lecturer(s): |
Assoc. Prof. 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) To have a conceptual framework related to the field of International Finance and Banking | |||||||||
| 2) To understand the theoretical approaches and counterarguments related to the field of International Finance and Banking in full detail. | |||||||||
| 3) To be able to explain the current operational and managerial methods in the field of International Finance and Banking. | |||||||||
| 4) Developing analytical approaches to financial issues and possessing problem-solving skills. | |||||||||
| 5) Applying the theoretical principles of finance to the realities of business life in the field of International Finance and Banking. | |||||||||
| 6) Develop solutions to management issues by understanding the requirements of international financial markets. | |||||||||
| 7) To be able to develop innovative and creative thinking in the face of complex situation | |||||||||
| 8) To be able to make decisions at both the local and international levels by understanding the effects of globalization on business and social life. | |||||||||
| 9) Having digital age skills and being able to use the necessary financial applications. | |||||||||
| 10) Having the qualifications to begin postgraduate studies in finance and possessing an awareness of lifelong learning. | |||||||||
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution | |
| 1) | To have a conceptual framework related to the field of International Finance and Banking | |
| 2) | To understand the theoretical approaches and counterarguments related to the field of International Finance and Banking in full detail. | |
| 3) | To be able to explain the current operational and managerial methods in the field of International Finance and Banking. | |
| 4) | Developing analytical approaches to financial issues and possessing problem-solving skills. | |
| 5) | Applying the theoretical principles of finance to the realities of business life in the field of International Finance and Banking. | |
| 6) | Develop solutions to management issues by understanding the requirements of international financial markets. | |
| 7) | To be able to develop innovative and creative thinking in the face of complex situation | |
| 8) | To be able to make decisions at both the local and international levels by understanding the effects of globalization on business and social life. | |
| 9) | Having digital age skills and being able to use the necessary financial applications. | |
| 10) | Having the qualifications to begin postgraduate studies in finance and possessing an awareness of lifelong learning. |
| 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 | |