MBA625 International Finance

for S1P 2012

Printer Friendly

Mission Statement: Park University provides access to a quality higher education experience that prepares a diverse community of learners to think critically, communicate effectively, demonstrate a global perspective and engage in lifelong learning and service to others.

Vision Statement: Park University, a pioneering institution of higher learning since 1875, will provide leadership in quality, innovative education for a diversity of learners who will excel in their professional and personal service to the global community.


MBA 625 International Finance


S1P 2012 MB


Naseem Al Rahahleh


Assistant Professor of Finance


Ph.D.--University of New Orleans
M.S.-- University of New Orleans
M.S.- Yarmouk University

Office Location

MacKay 27E

Office Hours

Mondays and Wednesdays: 12:00noon to 1:30pm; Wednesdays and Fridays: 9:15am to 10:00am;  Tuesdays: 2:00-5:30pm

Daytime Phone

(816) 584-6376


Semester Dates

Monday, Jan. 16, 2012 to Sunday, Mar.11, 2012

Class Days

--T----  Room MC26

Class Time

5:30 - 9:50 PM


FI 360 and MBA 615

Credit Hours



Main Textbook (Required): International Financial Management by Jeff Madura, South Western/Cengage Learning, 10th Edition. ISBN-10: 1439038333;  ISBN-13: 9781439038338   

Reference Textbook (Optional): Fundamentals of Multinational Finance by EMoffett, Stonehill & Eiteman, Pearson, Prentice Hall, 4th Edition.  ISBN-10: 0132138077 ; ISBN-13: 9780132138079

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

  1. Financial Calculator: I will use Texas Instruments BA II Plus Financial Calculator for classroom demonstration(Only for ch. 14 &17).
  2. E-Companion Course site: lecture slides, homework Problems, sample test questions.
  3. Wall Street Journal is recommended, since many articles appearing in Wall Street Journal are strongly related to the course materials.
  4. Financial Times.

McAfee Memorial Library - Online information, links, electronic databases and the Online catalog. Contact the library for further assistance via email or at 800-270-4347.
Career Counseling - The Career Development Center (CDC) provides services for all stages of career development.  The mission of the CDC is to provide the career planning tools to ensure a lifetime of career success.
Park Helpdesk - If you have forgotten your OPEN ID or Password, or need assistance with your PirateMail account, please email or call 800-927-3024
Resources for Current Students - A great place to look for all kinds of information

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:

  1. Create a positive learning environment by being clear and understandable, acknowledging the student interests and their diverse talents, providing prompt feedback.
  2. Try to teach the students the basics of learning. Critical thinking will not be achieved if the students are not getting the main idea of the subject. Ultimately, I target the quality of learning and not the quantity.
  3. Motivate my students to engage in class activities and into class discussion.

Learning Outcomes:
  Core Learning Outcomes

  1. Explain key factors determine foreign exchange rates.
  2. Discuss the concept of interest rate parity.
  3. Explain the purchasing-power parity theory and the law of one price.
  4. Explain what exchange rate risk is and how it can be controlled.
  5. Discuss the risks involved in direct foreign investment.
  6. Explain country risk analysis and long term investment decisions.

  Instructor Learning Outcomes
  1. Learn how to use currency derivatives to hedge currency risk
  2. Learn how to make international investment and capital budgeting decisions
Core Assessment:

Class Assessment:

There will be two exams during the semester (Midterm and final). All exams are closed book/closed notes. The final is comprehensive in nature and will take place as indicated on the class schedule. All exams will contain problem and essay-type questions and possibly a few multiple-choice questions and short questions (True or False). Make-up exam can only be given before the actual exam. Unless there is a reason beyond your control, e.g. automobile accident, medical excuse, you are expected to take the exam with the rest of the class. However, if you absolutely cannot make it then you must let me know before the exam.

Homework Assignments:
I will assign homework for each subject. You are expected to work through these problems individually and turn them for grade.
Class Participation:

Your participation grade is based on the quality of your inputs into class discussions and your attendance. Your attendance is required. Students are expected to attend all classes regularly and punctually. Parking is often a hassle; allow enough time for it. Lectures will start promptly at 5:30pm. Please enter the classroom with as little disruption as possible. Two late arrivals will count as one unexcused absence. My expectation is that you do not leave the classroom in the middle of a lecture. Please prepare yourself for this. Your class participation will count 5% of your course grade. Participation is important to understanding the course material, so I will be monitoring your participation throughout the course. 

Group Case Analysis:

The idea of this exercise is to give you the opportunity to look at the challenges and developments in the international finance area. Each group is required to analyze and write up a report on one case. The case that you will analyze will be given to you on the third week of class. Members of each group will be the experts to the topic of the case assigned to them. You should answer all questions and show your work.

Midterm Exam: 25%

Final Exam: 25%
Case Analysis (Report and Presentation): 30%
omework Assignments: 15%
Participation: 5%

The following grading scale will be used in determining your final letter grade:
90 – 100          A 
80 – 89
0 – 79            C
0 – 69            D
elow 60          F

Late Submission of Course Materials:
Points will be deducted for late assignments. Late homework will be penalized at the rate of 10% per day, unless a plausible and documented excuse is presented. Assignments more than 2 days late will not be accepted.

Classroom Rules of Conduct:
Class disruptions will not be allowed. Students are expected to assist in maintaining a classroom environment that is conducive to learning. To assure that students have an opportunity to gain from the time spent in class; students are prohibited from using cell phones or beepers, reading newspaper, sleeping or engaging in any other form of distraction.

If you do not understand the material, it is your responsibility to ask questions. Students are encouraged to ask questions during lecture and after lecture to receive clarification about the material we have just covered. You can also see me during my office hours.

Course Topic/Dates/Assignments:

Tentative Class Schedule:

This Course Outline is a general guideline. Deviation may be necessary. Students are responsible for all announcements made in class or posted on eCompanion Course site.



Week 1: Jan. 17, 2012


Introduction and Overview-Schedule, Grading, Class Policies

The International Financial Environment

Ch. 1: Multinational Financial Management: An Overview

Ch. 2: International Flow of Funds

Week 2: Jan. 24, 2012

The International Financial Environment

Ch. 3: International Financial Markets

Ch. 4: Exchange Rate Determination

Case Discussion (TBA) 

Week 3: Jan. 31,2012

The International Financial Environment

Ch. 5: Currency Derivatives


Week 4: Feb. 7, 2012

Exchange Rate Behavior

Ch.7:International Arbitrage and Interest Rate Parity 

Midterm Test 

Ch.1, 2, 3, 4, 5

Week 5: Feb.14, 2012

Exchange Rate Behavior

Ch.7: International Arbitrage and Interest Rate Parity 

Exchange Rate Behavior

Ch. 8: Relationships among Inflation, Interest Rates, and Exchange Rates

Week 6: Feb. 21, 2012

Exchange Rate Risk Management

Ch. 11: Managing Transaction Exposure

Long-Term Asset and Liability Management

Ch. 14: Multinational Capital Budgeting

Case Discussion (TBA)

Week 7: Feb. 28, 2012

Long-Term Asset and Liability Management

Short-Term Asset and Liability Management

Group Case Submission

Ch. 17: Multinational Cost of Capital and Capital Structure

Ch. 21: International Cash Management


Week 8: Mar. 06, 2012

Case Presentations

Final Exam: Comprehensive

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 2011-2012 Graduate Catalog Page 21


Plagiarism is 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 2011-2012 Graduate Catalog Page 21

Attendance Policy:

Students must participate in an academically related activity on a weekly basis in order to be marked present in an online class. Examples of academically-related activities include but are not limited to: contributing to an online discussion, completing a quiz or exam, completing an assignment, initiating contact with a faculty member to ask a courserelated question, or using any of the learning management system tools.Park University 2011-2012 Graduate Catalog Page 25

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: .


This material is protected by copyright and can not be reused without author permission.

Last Updated:1/3/2012 9:33:56 PM