 Syllabus

Finance for International Business

FIN 604
Course Title: Finance for International Business
Course Code: FIN-604
Type of Course: MBA Program
Level of Course: Graduate
Number of US credits: 3
Number of ECTS credits: 4.5
Duration: 12 weeks
Name of Lecturer/Professor: Vo Anh Dung/ Tran Tam Anh
Language of Instruction: English/ Bilingual
Course Summary
A key factor in international business is the need to operate in a multi-currency
environment. The course looks at the way in which the foreign exchange markets
have developed, and how they operate. The determination of spot and forward rates
is explained, and students are taught to calculate interest-parity forward prices and
to look for arbitrage opportunities. The different concepts of foreign exchange
exposure are discussed, which then leads to a detailed study of hedging operations,
using both traditional methods and the derivative instruments introduced in
“Financial Markets and Institutions”.
The scope and the content of international business have been evolving very fast
the last twenty years: deregulation of markets, product innovations, technological
changes. Capital markets become more and more integrated and understanding of
international business is nowadays necessary to any student of international matters
or to any manager in multinational firms or institutions.
This course will give the basic knowledge of international finance to students. This
knowledge includes the definition of concepts and of new financial investments. It
also includes the presentation of statistics that will allow students to understand
recent developments of the world finance.
Course Objectives
The course will allow students to understand what is called international finance. It
will also allow students to be able to take their own decisions if they need them,
when they will work in finance departments of international companies It also
includes the presentation of statistics that will allow students to understand recent
developments of the world finance.
Expected Outcome / Learning
Upon completion of this course, students will know and understand concepts and
practical solution-oriented approaches to financial investment within today’s
integrated global financial market. They will also be able to:
 Explain with the aid of statistics and/or calculations how recent developments
in the world financial system affect individual industries, businesses and
markets.
 Understand the International Monetary System, spot market and the forward
market.

 Address the management of transaction exposure, the international bond

market and equity Markets, as well as currency swaps.

Prerequisites
There are no prerequisites but students are invited, before entering the course, to
refresh their memories about basic statistics. The instructor will be able to help them
if necessary. The course will need the students to practice calculations.
Required Textbook
Eun C, Resnick B, International Financial Management, McGraw-Hill, 6th edition,
2012. ISBN-13 9780078034657
It is also highly recommended to read newspapers, such as The Financial Times or
The Wall Street Journal, and magazines, such as The Economist.
Suggested Readings
Frank K Reilly & Edgar A. Norton, Investments, Thomson/ Southwestern
publishing7th edition, 2006 (or later edition), ISBN: 0-324-28899-9
Further supplementary readings will be provided in the reading assignments for
each session.
  Schedule

COURSE SCHEDULE

Module 1 (week 2)

The International Monetary System: examines the evolution of the international monetary system and the
changes that took place since its foundation (1945). A study of the balance of payments will be included.
The Foreign Exchange Market: explains the function and the structure of foreign exchange market. It analy
both the spot market and the forward market.
Management of Transaction Exposure: explains the management of transaction exposure that arises from
contractual obligations denominated in a foreign currency

Textbook, Chapter 2, 3, 5, 8

Be ready to discuss:
“Discuss and explain the arrangements of the European Monetary System (EMS)”
“Why does most interbank currency trading worldwide involve the U.S. dollar?”

“Explain cross-hedging and discuss the factors determining its effectiveness.”

Open for Assessment: Online Quiz Set 1

Module 2 (week 3)

International Banking and Money Market: differentiates between international bank and domestic bank
operations and examines the institutional differences of various types of international banking offices. Interna
banks and their clients constitute the Eurocurrency market and form the core of the international money mark
International Bond Market: distinguishes between foreign bonds and Eurobonds, which together make up t
international bond market. The advantages of sourcing funds from the international bond market as opposed
raising funds domestically are discussed. A discussion of the major types of international bonds is included in
chapter.
International Equity Markets: logically focused on the other international equity included in the balance she

Textbook, chapters 11, 12, 13

1. Be ready to discuss:
“Discuss the regulatory and macroeconomic factors that contributed to the credit crunch of 2007 – 200
“What should a borrower consider before issuing dual-currency bonds? What should an investor cons
before investing in dual-currency bonds?”

“Why might it be easier for an investor desiring to diversify his portfolio internationally to buy deposito
receipts rather than the actual shares of the company?”
2. Open for Assessment: Online Quiz Set 2
3. Deadline: Online Quiz Set 1 (Sunday, week 3)

Module 3 (week 4)

Currency Swaps. After having discussed interest rate swap, this module will focus on currency swaps as pa
international financial management.
Conclusion and Final Assignment: This final module will also offer the final opportunity for students to disc
their final term essay topic and research with the Professor and fellow students.

Textbook, chapters 14, revisions

Be ready to discuss: “Discuss the risks confronting an interest rate and currency swaps dealer.”
2. Open for Assessment: Online Quiz Set 3
3. Deadline: Online Quiz Set 2 (Sunday, week 4)

Week 5

Description Deadline: Online Quiz Set 3 (Sunday, week 5)

Assignment instructions

Read Assignment questions and marking guides

Prepare Complete your Online Quizzes for Module 3 before deadline

Attend Final assignment instruction session

Weeks 6 - 8

Description Final assignment supports

Read None

Prepare Assignment drafts

Week 11

Description Final Assignment correction

Read None

Prepare Make corrections of your Final assignment

Week 12

Description Final Assignment Submission

Read None
Prepare Submit your Final Assignment at end of week 12

Top of Form
 Policies

Finance for International Business

FIN 604
Criteria For Evaluating Student Performance:
Student's performance will be assessed by the work they do in the course –
including completing their discussion questions, answering their all of the multiple
choice questions and submit the final assignment on time. Online course grading is
based on not only completion of final examination but also on completing the
assignments throughout the course.
These assignments include:
(1) Quizzes : Students are requested to answer a number of multiple choice
questions (theotical and problem solving), and/or discussion questions, and/or short
responses
(2) Final assignment : Students are requested to complete the final assignment and
submit it on time.
(NOTE, The final assignment and the discussion question must be presented in
APA format).
Students' grades will be assessed as follows:

Assignment Quantity Marking Points Percentage of Total

Quizzes 3 30 30

Final 1 100 70
Assignment

Total 100

It is important to note that graduate students must maintain a 3.0 GPA to retain their
matriculated status. A “C” grade, therefore, is passing, but below the score needed
to stay matriculated.
Grading Policy

Grade Percentage Quality Points per Credit

A 93-100 Outstanding 4.0

A– 90-92 3.7

B+ 87-89 3.3

B 83-86 Satisfactory 3.0

B– 80-82 2.7

C+ 77-79 2.3

C 73-76 Poor 2.0

F 0-72 Failure 0.0

Students must maintain the readings, discussion participation, quizzes and

assignments to obtain a passing grade in the course. To obtain a superior grade,
students must demonstrate a high degree of quality in their work.
PLEASE NOTE THAT PLAGIARISM (copying other writers' text without due citation
or recognition) WILL NOT BE TOLERATED. Plagiarism is equal to cheating in
exams as it means "stealing" solutions to problems, ideas or written text from other
people and pretending they are your own. Students caught committing these forms
of cheating will be subject to course failure and will be reported to the Dean of the
University. Two instances of cheating or plagiarism will be cause for academic
suspension.
For information on what plagiarism is and how to avoid it, please read the pages 41
and 41 in the book: TURABIAN, Kate L., A Manual for Writers of Research
Papers, Theses, and Dissertations, Chicago Style for Students and Researchers,
7th Edition, The University of Chicago Press, 2007.

Bottom of Form