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Scheme of Work. International Finance

Autor:   •  March 6, 2015  •  Term Paper  •  1,064 Words (5 Pages)  •  532 Views

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 SCHEME OF WORK

BWFF3043 INTERNATIONAL FINANCE

SEMESTER A131 (2013/2014)

LECTURER’S NAME: Angappan Regupathi        

        

WEEK

TOPICS & SUB-TOPICS

OBJECTIVES

HOURS

M.O.D

TA

NOTES

1

1.0   Introduction

  • Globalisation
  • Theories of international trade and industry location
  • MNCs, foreign direct investment strategy, and globalisation
  • Special risks faced by MNCs
  • Corporate governance of MNCs
  • International financial management issues

  • To explain  globalisation
  • To explain the relevant theories of international trade and industrial location
  • To explain MNCs’ foreign direct investment strategy and their impact on globalisation
  • To describe the risks faced by MNCs
  • To explain the importance of MNC corporate governance
  • To explain the issues in international financial management

3

Lecture

Discussion

Q/A

Powerpoint

Internet

OHP

LCD

Chapter 1

Chapter 21

(pp. 527-528)

2

2.0   International Financial Markets

  • Foreign exchange markets

  • To describe features of the foreign exchange market

3

Lecture

Discussion

Q/A

Powerpoint

Internet

OHP

LCD

Chapter 4

3

  • International money markets
  • International debt markets
  • Global equity markets

3.0   Currency Systems and Valuation

  • A brief history of monetary regimes
  • Contemporary currency systems
  • Currency valuation basics

  • To describe features of the international money markets
  • To describe features of the international debt markets
  • To describe the features of the global equity markets

  • To describe briefly the history of monetary regimes
  • To describe the current currency regimes
  • To explain the determination of a currency’s value

1.5

1.5

Lecture

Discussion

Q/A

Powerpoint

Internet

OHP

LCD

Chapter 7

(pp. 206-213)

Chapter 8

(pp. 236-239)

Chapter 9

(pp. 264-272)

Chapter 2

Project details to be given

4

  • Factors affecting currency values
  • How governments intervene in the currency markets
  • Currency crises in emerging markets

4.0   Currency Parity Conditions

  • Basic arbitrage in currency markets

  • To explain the influence of factors on currency value
  • To describe the ways a government intervenes in the currency market
  • To explain the causes, impacts, and responses to the currency crises

  • To solve currency arbitrage problems

1.5

1.5

Lecture

Discussion

Q/A

Exercises

Powerpoint

Internet

OHP

LCD

Chapter 5

5

  • Money markets and currency markets

  • To solve covered interest arbitrage problems and interest rate parity

3

Lecture

Discussion

Q/A

Powerpoint

OHP

LCD

6

  • Product markets and currency markets
  • International Fisher effect: real rates of return and inflation

5.0   Currency and Eurocurrency Derivatives

  • What are derivatives?
  • Currency forwards

  • To explain purchasing power parity and its implication on exchange rates
  • To explain the international Fisher effect and its implication on exchange rates

  • To describe the basic features of derivatives
  • To explain the features of currency forwards

1.5

1.5

Lecture

Discussion

Q/A

Powerpoint

OHP

LCD

Chapter 6

7

  • Currency futures

  • Currency options

  • To explain the features of currency futures
  • To compute profit from the currency option speculation & explain factors influence on option pricing

3

Lecture

Discussion

Q/A

Powerpoint

OHP

LCD

8

6.0   Currency Risk Exposure Measurement

  • Variation in foreign exchange
  • Transaction exposure

  • Economic and operating exposure

  • To measure the variation in exchange rates
  • To explain transaction exposure measurement
  • To explain estimating economic or operating exposure

3

Lecture

Discussion

Q/A

Powerpoint

OHP

LCD

Chapter 12

Chapter 13

Chapter 14

(pp. 389-390, 395, 399-402)

9

  • Translation exposure
  • Firm type and nature of currency exposure

7.0   Currency Exposure Management

  • Why manage currency risk?
  • Actual hedging behaviour by firms

  • To explain translation exposure
  • To describe the empirical evidence on currency exposure

  • To explain the arguments for managing currency risk
  • To describe actual corporate hedging

1.5

1.5

Lecture

Discussion

Q/A

Exercises

Powerpoint

OHP

LCD

MID-SEMESTER TEST:

Tuesday, 12/11/2013, 5:00pm–6:00pm

10

  • Hedging techniques
  • Operating decisions to mitigate transaction exposure
  • Operating decisions to mitigate operating exposure

  • To solve hedging problems
  • To explain operating decisions to reduce transaction exposure

  • To explain operating decisions to reduce operating exposure

3

Lecture

Discussion

Q/A

Exercises

Powerpoint

OHP

LCD

11

8.0   Capital Budgeting

  • The MNC capital budgeting process
  • Competitive advantage offered by international projects
  • Types of overseas projects
  • Overview of international capital budgeting
  • Net present value of an international project

  • To describe MNC’s capital budgeting process
  • To explain the benefits from international projects
  • To describe the types of overseas projects
  • To describe the key features of international capital budgeting
  • To compute the NPV of an international project

3

Lecture

Discussion

Q/A

Powerpoint

OHP

LCD

Chapter 17

12

  • Currency risk

  • Country risk

9.0   Long-Term Financing

  • Financing MNCs’ activities
  • MNC debt financing
  • MNC equity financing
  • Cost of capital and optimal financing

  • To describe  integrating currency risk in the analysis
  • To describe incorporating country risk in the analysis

  • To explain financing advantages and constraints of MNCs
  • To describe the debt financing available for MNCs
  • To describe the equity financing available for MNCs
  • To estimate MNCs’ optimal financing

1.5

1.5

Lecture

Discussion

Q/A

Exercises

Powerpoint

1/12/2013
DEADLINE for submission of project report

Chapter 16

13

  • Strategic issues in financing MNCs
  • The use of derivatives in financing activities
  • How foreign MNCs use US equity markets

10.0  Optimising and Financing Working Capital

  • Overview of working capital issues
  • Cash management
  • Receivables
  • Bank financing
  • To describe the strategic issues in MNC financing
  • To explain use of derivatives in financing
  • To explain how foreign MNCs use US equity markets

  • To describe the broad issues in MNC working capital management
  • To describe the issues in MNC cash management
  • To describe the issues in MNC receivables management
  • To describe the types of bank financing available for MNCs

1.5

1.5

Lecture

Discussion

Q/A

Exercises

Powerpoint

OHP

LCD

Chapter 18

14

  • Market financing
  • Financing strategies to minimise cost

11.0  International Trade

  • Import and export: shipment and payment
  • Import and export financing
  • To describe the types of market financing available for MNCs
  • To explain the financing strategies to minimise cost

  • To describe issues and strategies in shipment and payment
  • To describe the financing strategies of export and import

1.5

1.5

Lecture

Discussion

Q/A

Exercises

Powerpoint

OHP

LCD

Chapter 19

(pp. 493-496)

...

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