MBA 625 International Finance
F1P 2009 MB
Kao, Robert, Ph.D.
Visiting Assistant Professor of Finance
Monday and Wednesday 3:00-4:00 p.m. or by appointment
5:30 - 9:50 PM
Cheol Eun and Bruce Resnick, International Financial Management, 5th Edition ISBN:978-0-07-338234-5, McGraw Hill, 2009.
Textbooks can be purchased through the MBS bookstore
Textbooks can be purchased through the Parkville Bookstore
Alan, C. Shapiro, Multinational Financial
Management, 9th Edition, ISBN: 978-0-470-41501-6, John Wiley and
Sons, Inc., 2009.
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Your grade will be
determined by answers to discussion questions and responses, weekly homework
assignments, and by the results of tests, final exam, and case
projects/papers. Except as otherwise stated, all submissions will be
graded on relevance, comprehensiveness, specificity, clarity and analytical
skills, as well as writing skills.
Grades will be based on completion of the required
assignments as well as exams. Grades will be awarded according to the following
International Case Project/Paper
630 or above
Late Submission of Course Materials:
Late submission of material
will not be accepted without prior arrangements being made with the instructor.
No late assignments will be accepted after the regular semester ends.
Classroom Rules of Conduct:
Students are expected to arrive in the classroom before the class
starts. Class disruptions from cell phones, pagers or any other device
will not be allowed. During exams, all cell phones must be turned off.
Week 1 (August 20)
of International Financial Management
Globalization; International Monetary System;
Balance of Payment
Assignment: Chapters 1-3
Studies and Discussions: (1) Nike and Sweatshop Labor (2) Will the United
Kingdom Join the Euro Club? (3) Mexico’s Balance-of-Payment
Homework: Chapter 1: Q4, Q7, P1; Chapter 2: Q3, Q9, Q10; Chapter 3: Q2,
Q5, Q10, Q12, P1
Week 2 (August 27) - The Foreign Exchange
Market, Exchange Rate Determination, and Current Derivatives
The Market for Foreign Exchange; International
Parity Relationships and Forecasting Foreign Exchange Rates; Futures and
Options on Foreign Exchange
Assignment: Chapters 5-7; materials will be distributed in class
Studies and Discussions: (1) Shrewsbury Herbal Products, Ltd. (2) Turkish Lira
and Purchasing Power Parity (3) The Options Speculator
Homework: Chapter 5: Q3, Q4, Q7, Q9, P1, P6, P9; Chapter 6: Q1, Q4, Q9,
Q11, P1, P3, P8; Chapter 7: Q1, Q2, Q5, P1, P4, P9
Week 3 (September 3) - Foreign Exchange Exposure
Exposure; Economic Exposure; Translation Exposure
Reading Assignment: Chapters 8-10 and materials will be distributed in class
Studies and Discussions: (1) Airbus’ Dollar Exposure (2) Economic Exposure of
Albion Computers PLC (3) Sundance Sporting Goods, Inc.
Homework: Chapter 8: Q2, Q4, Q6, P1, P4, P5; Chapter 9: Q1, Q4, Q6, Q9,
P1, P2; Chapter 10: Q1, Q3, Q5, P1
Test 1 (Ch. 1-3; 5-7) – 2 Hours
Week4 (September 10) - World Financial Markets and
Banking and Money, Bond, and Equity Markets
Assignment: Chapter 11-13 and materials will be distributed in class
Studies and Discussions: (1) Detroit Motors’ Latin American Expansion (2) Sara
Lee Corporation’s Eurobonds (3) San Pico’s New Stock Exchange
Homework: Chapter 11: Q1, Q4, Q6, P1, P2, P4; Chapter 12: Q1, Q3, Q6,
P1, P2, P3; Chapter 13: Q2, Q3, Q5, P1, P2
Week 5 (September 17) - World Financial Markets and
Interest Rate and Currency Swaps;
International Portfolio Investment
Assignment: Chapter 14, 15
Studies and Discussions: (1) The Centralia Corporation’s Currency Swap (2) Solving
for the Optimal International Portfolio
Homework: Chapter 14: Q3, Q4, Q6, Q7, P1, P4; Chapter 15: Q5, Q6, Q12,
P1, P3, P5; International Case Project Proposal is due on Sep. 24
Week 6 (September
24) – Financial Management of the Multinational Firm
Foreign Direct Investment; Cross-Border Acquisitions;
Country Risk Analysis; International Capital Structure; Cost of Capital;
Assignment: Chapters 16-18
Studies and Discussions: (1) Enron vs. Bombay Politicians (2) Dorchester, Ltd.
(3) Strike-It Rich Gold Mining Company
Homework: Chapter 16: Q3, Q4, Q8, Q11, Q13, Q17; Chapter 17: Q2, Q3,
Q6, Q9, P1, P2, P3; Chapter 18: Q1, Q5, Q7, Q9, P1, P3, P5
Test 2 (Ch. 8-15) – 2 Hours
Week 7 (October 1) - Financial
Management of the Multinational Firm (continued)
International Cash Management, Trade Finance,
and Tax Environment, and Transfer Pricing
Review for the Final
Assignment: Chapters 19-21
Studies and Discussions: (1) Eastern Trading Company’s New MBA (2) American
Machine Tools, Inc. (3) Sigma Corp.’s Location Decision
Homework: Chapter 19: Q1, Q2, P1; Chapter 20: Q1, Q4, Q6, Q7, P1, P2;
Chapter 21: Q6, Q7, P1, P3, P5
Week 8 (October
8) - Final
Exam and Project Presentations
*All subjects are subjected to change.
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Last Updated:8/7/2009 9:52:21 AM