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MBA 625 International Finance
Kao, Robert


Mission Statement: The mission of the School of Graduate and Professional Studies at Park University is to provide leadership and directions to Park University's graduate and professional programs to assure that they are specialized, scholarly, innovative, and designed to educate students to be creative, independent, and lifelong learners within the context of a global community.

Vision Statement: Park University's School of Graduate and Professional Studies will be an international leader in providing innovative graduate and professional educational opportunities to learners within a global society.

Course

MBA 625 International Finance

Semester

F1P 2009 MB

Faculty

Kao, Robert, Ph.D.

Title

Visiting Assistant Professor of Finance

Office Location

Norrington 2B

Office Hours

Monday and Wednesday 3:00-4:00 p.m. or by appointment

Daytime Phone

816-584-6852

E-Mail

robert.kao@park.edu

Class Days

----R--

Class Time

5:30 - 9:50 PM

Credit Hours

3


Textbook:
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

Additional Resources:
Alan, C. Shapiro, Multinational Financial Management, 9th Edition, ISBN: 978-0-470-41501-6, John Wiley and Sons, Inc., 2009.

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Course Description:
MBA 625 International Finance: Study of the international monetary environment and financial planning for corporations with overseas operations. Analysis of the effects of exchange rate fluctuations, currency restrictions and tax regulations on international financial planning, examination of financial aspects of multinational business, including foreign investment, trade and transfer of funds. Prerequisites: FI 360 and MBA 615 (Formerly FI 625)

Educational Philosophy:

  • Establish a classroom where ideas can be shared, students can be challenged in areas of topic learning and real knowledge can be exchanged.
  • Create an interactive environment which is based on lectures, readings, quizzes, dialogues, examinations, assignments, websites, and topic-related writings.
  • Motivate the class with available on-campus or off-campus seminars/speakers that would support and inspire student learning.

Class Assessment:
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.

Grading:

Grades will be based on completion of the required assignments as well as exams. Grades will be awarded according to the following schedule:

Test (2)                                                          200 points
Final Exam                                                      200 points
Homework                                                      100 points
International Case Project/Paper                   200 points

 Total                                                              700 points

630 or above                          A
            560-629                                  B
            490-559                                  C
            420-489                                  D
            Below 420                               F

All exams will be comprehensive and will be closed book and closed notes.  Calculators are allowed, but they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.

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.

Course Topic/Dates/Assignments:


Week 1 (August 20) - Foundations of International Financial Management

            Globalization; International Monetary System; Balance of Payment

·         Reading Assignment: Chapters 1-3

·         Case 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

·         Reading Assignment: Chapters 5-7; materials will be distributed in class

·         Case 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 and Management

 Transaction Exposure; Economic Exposure; Translation Exposure

 

·         Reading Assignment: Chapters 8-10 and materials will be distributed in class

·         Case 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 Institutions

International Banking and Money, Bond, and Equity Markets

 

·         Reading Assignment: Chapter 11-13 and materials will be distributed in class

·         Case 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 Institutions (continued)

Interest Rate and Currency Swaps; International Portfolio Investment

·         Reading Assignment: Chapter 14, 15

·         Case 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; Capital Budget

·         Reading Assignment: Chapters 16-18

·         Case 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

·         Reading Assignment: Chapters 19-21

·         Case 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.

Academic Honesty:
As a learning community, the University upholds the highest standards of academic integrity in all its academic activities, by faculty, staff, administrators and students. Academic integrity involves much more than respecting intellectual property rights. It lies at the heart of learning, creativity, and the core values of the University. Those who learn, teach, write, publish, present, or exhibit creative works are advised to familiarize themselves with the requirements of academic integrity and make every effort to avoid possible offenses against it, knowingly or unknowingly. Park University 2009-2010 Graduate Catalog Page 31

Plagiarism:

Plagiarism involves the appropriation of another person's ideas, interpretation, words (even a few), data, statements, illustration or creative work and their presentation as one's own. An offense against plagiarism constitutes a serious academic misconduct.  Although offenses against academic integrity can manifest themselves in various ways, the most common forms of offenses are plagiarism and cheating. Plagiarism goes beyond the copying of an entire article. It may include, but is not limited to: copying a section of an article or a chapter from a book, reproduction of an art work, illustration, cartoon, photograph and the like and passing them off as one's own. Copying from the Internet is no less serious an offense than copying from a book or printed article, even when the material is not copyrighted.

Plagiarism also includes borrowing ideas and phrases from, or paraphrasing, someone else's work, published or unpublished, without acknowledging and documenting the source. Acknowledging and documenting the source of an idea or phrase, at the point where it is utilized, is necessary even when the idea or phrase is taken from a speech or conversation with another person.

Park University 2009-2010 Graduate Catalog Page 31-32


Attendance Policy:

Professors are required to maintain attendance records and report absences. Excused absences can be granted by the instructor, for medical reasons, school sponsored activities, and employment-related demands, including temporary duty. Students are responsible for any missed work. Absences for two successive weeks, without approved excuse, will be reported to the Director of the individual graduate program, or to the Executive Director for the Graduate School, for appropriate action. Students with such a record of absences, without an approved excuse, may be administratively withdrawn from the class and notified that an "F" will be recorded, unless the student initiates official withdrawal from the class(es).Park University 2009-2010 Graduate Catalog Page 35

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: http://www.park.edu/disability .

Additional Information:



Bibliography:

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Last Updated:8/7/2009 9:52:21 AM