course syllabusbusiness.ju.edu.jo/lists/courses/attachments/75/course syllabus... · course...

QF-AQAC-03.02BS.1.2 Course Syllabus

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Course Syllabus

1. Department Name: Finance

2. Program Name: Bachelor of Finance

3. Program Code 03

4. Course Code and Title: 1603415 International Financial Management

5. Course credits: 3 Hours

6. Pre-requisites: 1603211 Principles of Managerial Finance

7. Course Instructor/ Coordinator Name, Email and Office hours

Dr. Mohammad Khataybeh

[email protected]

1-2 week days

8. Course web-page: -

9. Academic year: 2019-2020

10. Semester: First ✓ Second Summer

11. Textbook(s)

- International Corporate Finance, 11th edition, by Jeff Madura..

12. References:

- International Finance, 7th edition, Eun and Resnick.

13. Other resources used

- Material uploaded on e-learning.

14. Course description

This course explains the conceptual framework within which the financial decisions of the

multinational firm (MNCs) can be taken and analyzed. It includes the main aspects of financing

and investment decisions in an international context and their applications to a broad range of

practical issues.

Mapping to PILOs

CILOs (Preferred not to exceed 12 CILOs)

a b c d e f g H

1. To understand the international environment in which the MNCs operate and conduct businesses.

✓


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2. To comprehend how exchange rates are determined and how derivatives are used for hedging and speculation in the context of foreign exchange rate management.

✓

3. Explain how inflation and interest rates affect foreign exchange changes.

✓

4. To identify a number of methods used to forecast future exchange rates and how to manage exposure to exchange rate risk including country risk .

✓

15. Course evaluation:

Assessment Type

Details/ Explanation of Assessment in relation

to CILOs

Number Weight Date(s)

Quizzes The Quiz examines all

CILOs.

1 10%

Midterms The midterm exam

examines all CILOs.

1 30% 21/03/2020

Assignments asking questions, or

contributing to

discussions

N/A 5%

Projects/Case Studies

N/A 5%

Final The final should

examine all CILOs.

1 50%

Total 100%

16. Description of Topics Covered

Topic Title (e.g. chapter title)

Description

Introduction to International Management

■ identify the management goal and organizational structure of the MNC, ■ describe the key theories that justify international business, ■ explain the common methods used to conduct international business, and ■ provide a model for valuing the MNC.

Determining Exchange rate

■ explain how exchange rate movements are measured, ■ explain how the equilibrium exchange rate is determined, ■ examine factors that affect the equilibrium exchange rate, and ■ explain the movements in cross exchange rates.

Currency Derivatives for Speculation

■ explain how forward contracts are used to hedge based on anticipated exchange rate movements, ■ describe how


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currency futures contracts are used to speculate or hedge based on anticipated exchange rate movements, and ■ explain how currency options contracts are used to speculate or hedge based on anticipated exchange rate movements.

Interest Rate Parity and international arbitrage

■ explain the conditions that will result in various forms of international arbitrage and the realignments that will occur in response, and ■ explain the concept of interest rate parity.

Purchasing Power Parity and International Fisher Effect

■ explain the purchasing power parity (PPP) theory and its implications for exchange rate changes, ■ explain the international Fisher effect (IFE) theory and its implications for exchange rate changes, and ■ compare the PPP theory, the IFE theory, and the theory of interest rate parity (IRP), which was introduced in the previous chapter.

Managing Transaction Exposure

■ compare the techniques commonly used to hedge payables, ■ compare the techniques commonly used to hedge receivables, ■ explain how to hedge long-term transaction exposure, and ■ suggest other methods of reducing exchange rate risk when hedging techniques are not available.

Forecasting Future Exchange Rates

■ explain how firms can benefit from forecasting exchange rates, ■ describe the common techniques used for forecasting, and ■ explain how forecasting performance can be evaluated.

17. Course Weekly Breakdown:

Week Date Topics covered CILOs Teaching Method

Assessment

1 Introduction

2 Introduction to International Management

No. 1 Discussions, Real-life Examples and illustrations.

Participation and Exam

3 Introduction to International Management



4 Determining Exchange rate No. 2 Discussions, Real-life Examples and illustrations.


5 Determining Exchange rate No. 2 Discussions, Real-life Examples and illustrations.



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6 Currency Derivatives for Speculation



7 Currency Derivatives for Speculation



8 Interest Rate Parity and international arbitrage



9 Interest Rate Parity and international arbitrage



10 Purchasing Power Parity and International Fisher Effect



11 Purchasing Power Parity and International Fisher Effect



12 Managing Transaction Exposure



13 Managing Transaction Exposure



14 Forecasting Future Exchange Rates



15 Revision

18. Others:

Description

Attendance policies: Students are not allowed to miss more than 15% of the


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Copy to:

Head of Department

Assistant dean for Development and Quality Assurance

Course Portfolio

classes during the semester. Failing to meet this requirement will be dealt with according to the university disciplinary rules.

Absences from exams and handing in assignments on time:

Exams are paper-based and exams time will be assigned in advance of exams time. Students should come to class prepared enough to effectively participate. Participation is essential in the classroom. Student’s participation will be evaluated. In addition, a student’s participation will become a factor when making decision on borderline cases. No make-up exam will be held if students failed in providing approved absence form signed by the dean or the assistant dean for students' affairs. Details on the marking of homework's, quizzes, participation and presentation will be discussed in the introduction week.

Health and safety procedures: N/A

Honesty policy regarding cheating, plagiarism, misbehavior:

- Any inappropriate behavior will not be tolerated and student will face consequences based on the University disciplinary rules. - Students are kindly requested to keep their mobiles on silent mood during the lecture. Any disturbance caused by mobile phones will not be tolerated and mobile owner will be requested to leave the class.

Course Coordinator: Dr. Mohammad Khataybeh Add your Signature

Head of Department: Dr. Mohammad Khataybeh Add your Signature

Head of curriculum committee/ School Level: Add your Signature

Dean: Prof. Fayez Haddad Add your Signature

Approved by the Program Coordinator/ Head of the Department on:

15/09/2019

course syllabusbusiness.ju.edu.jo/lists/courses/attachments/75/course syllabus... · course...

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