fne306-01 international finance course document

7/23/2019 FNE306-01 International Finance Course Document

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Department of Finance

Faculty of Business

Chu Hai College of Higher Education

FNE306 International Finance

Course Document for Fall Semester in the Year 2015-16

Instructor: Prof. Raymond Tse

Email: [email protected]

Time: 11:40a.m.-2:10p.m. (Thur.)

Venue: Room 310

I.

COURSE DESCRIPTION and LEARNING OUTCOMES

Course Description

In this course, students would acquire the competence in managing foreign currencies

and associated financial matters in a multinational and commercial environment. The

course includes international financial systems, foreign exchange regimes and markets,

international parity conditions, international financial markets, derivatives and

management of foreign exchange exposures, international capital structure, capitalbudgeting and cash management, and interest rate and currency swaps. Upon

completion of the course, students would have the ability to analyze and devise

solutions to the contemporary complex economic and financial issues in a

multinational setting.

Prerequisites: FNE 101 Principles of Finance, BBA 112A/B Economics I/II

Textbook (Required)

Mofett, M.H., Stonehill, A.I. and Eiteman, D.K. (2014). Fundamentals of

Multinational Finance, 4th edition. Pearson Education Limited.

Program Learning Objectives (PLOs)

PLO1: To apply knowledge of management and finance to personal and corporate

financial management.

PLO2: To think and reason independently and critically to different alternatives inproblem solving and to communicate effectively the process and results of



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the solution in writing and conversation for professional presentation and

technical document.

PLO3: To apply economic and financial concepts and develop deterministic and

stochastic models by simple to advanced mathematics, numerical methods,

computer simulation, or data analysis techniques to solve practical financial

and economic problems, especially with a Greater China focus.

PLO4: To extend knowledge to successfully pass professional examinations, further

study, and develop management solution (potentially using the acquired

sectorial financial skills and knowledge) vital for career advancement in a

financial institution.

PLO5: To work effectively and responsibly as a team member to accomplish a

common goal and be cognizant of the professional and ethical responsibility

in developing financial systems, rules and regulations.

PLO6: To possess broad general knowledge in social, cultural, historical and

political context for all-round development with acumen to the problems and

solutions of current economic and financial issues, and a strong sense of

social commitment, global vision, creativity and adaptability.

Course Intended Learning Outcomes (CILOs)

Upon completion of the course, students should be able to:

1.

Distinguish the current international monetary systems, foreign exchangemarkets, international financial markets and foreign currency products.

2. Determine foreign exchange rate based on foreign exchange theories.

3. Manage various types of foreign exchange exposures for MNEs.

4. Be familiar with the special issues of portfolio management under international

settings.

Alignment of Program and Course Learning Objectives

Program Learning Outcome Course Learning Outcome

1. To apply knowledge of management and finance

to personal and corporate financial management.

CLO1, CLO2, CLO3

2. To think and reason independently and critically

to different alternatives in problem solving and to

communicate effectively the process and results of

the solution in writing and conversation for

professional presentation and technical document.

CLO1, CLO2, CLO3, CLO4

3. To apply economic and financial concepts anddevelop deterministic and stochastic models by

CLO2, CLO3



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simple to advanced mathematics, numerical

methods, computer simulation, or data analysis

techniques to solve practical financial and economic

problems, especially with a Greater China focus.

4. To extend knowledge to successfully pass

professional examinations, further study, and

develop management solution (potentially using the

acquired sectorial financial skills and knowledge)

vital for career advancement in a financial

institution.


5. To work effectively and responsibly as a team

member to accomplish a common goal and be

cognizant of the professional and ethical

responsibility in developing financial systems, rules

and regulations.


6. To possess broad general knowledge in social,

cultural, historical and political context for all-round

development with acumen to the problems and

solutions of current economic and financial issues,

and a strong sense of social commitment, global

vision, creativity and adaptability.


II. COURSE DELIVERY and COURSE ASSESSMENT

Teaching and Learning Activities

TLA1. Lectures

Forty lecture hours for the whole course dividing into 17 week class hours

including 1 examination week hours. Students are asked to actively participate

in the classroom discussions.TLA2. Assigned Individual Homework

Selected questions and problems will be assigned after each chapter as

homework which will not be collected for grading. However, students are

strongly urged to practice these questions and problems in order to do well in

this course.

TLA3. Group Assignments

Students are asked to form groups with 3 to 4 members to complete six

assignments outside the classroom. This gives students the opportunities to

apply and integrate the knowledge learned and to demonstrate the problem



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solving skills. By engaging in this exercise, students will not only learn to work

as a team but also develop their team spirit and communication skills that are

useful in their future work.

TLA4. Consultation

Instructor offers consultation after class to address students’ questions. Students

are encouraged to discuss questions with the instructor either in person or by

email.

Course Assessment Tasks

Course grade will be based on class participation, group assignments, midterm

examination, and final examination as follows:

AT1 Individual Class Participation 5%

AT2 Group Assignments 25%

AT3 Midterm Examination 20%

AT4 Final Examination 50%

Total 100%

AT1. Class Attendance and Participation

Attendance will be taken for all lectures. To ensure that students gain the

maximum benefit from the classes, students are required to attend at least

two-third of classes for each course, otherwise they may be treated as havingfailed the whole course. If students are 30 minutes late or leave early without

consulting the instructor beforehand, they will be regarded as not having

attended the class. Students are encouraged to actively participate in all class

activities and discussions. It is required that every student brings his / her

calculator to class for in-class-exercise. Individual class participation will be

evaluated and account for 5% of students’ total grade.

AT2. Group Assignments

Six group assignments will be given and each group will submit one copy for

grading. Students will have the opportunity at the end of the course to evaluate

their team members so that the assignment grade will be adjusted according to

the students’ input. For this reason, students are required to stay in the same

group for the whole course. The assignments will evaluate students’

performance in acquisition and internalization of knowledge and techniques

delivered in the course. They also serve to evaluate students’ ability in applying

and integrating the relevant knowledge in the finance profession.



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AT3 and AT4 Examinations

Midterm and final examinations will be given during the examination weeks as

set out in the college calendar. Both examinations are closed-book and

closed-notes and last for two hours and fifteen minutes. Formulas will be

provided as appropriate. The examinations are designed to assess students’

performance in acquisition, internalization, and application of knowledge and

techniques in the subject of International Finance. No make-up examination will

be given.

Alignment of Course Intended Learning Outcomes, Teaching and Learning

Activities and Assessment Tasks

Course Intended Learning

Outcomes

Teaching and Learning Activities Assessment Tasks

CILO1 TLA1, TLA2, TLA3, TLA4 AT1, AT2, AT3, AT4




Grading Criteria

Grade Performance

A Indicates that the student has an outstanding performance and a thorough

mastery of the subject matter

B Indicates that the student has a good performance and is competent in

knowledge of the course

C Indicates that the student has a satisfactory performance and an acceptable

level of knowledge of the course

D Indicates that the student has a marginally satisfactory performance and anacceptable level of the knowledge of the course

F Indicates that the student has failed the course. A student receiving grade

“F” in a course must retake that course

III. COURSE POLICIES

Class Conduct

Students are required to attend all classes on time. If students are 30 minutes late or

more, they will be regarded as not having attended the class. In case you have to leave

the class early, please inform the instructor before the class begins. Please sit near the



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door and exit quietly. If you fail to inform the instructor before you leave, no credit

will be given for your class attendance.

Respect your instructor and your fellow students. Keep silent and switch off your

mobile phone unless necessary. Be considerate to others.

Academic Dishonesty

The college regulations on academic dishonesty will be strictly enforced. Please check

the student handbook on plagiarism.

Academic dishonesty is any act misrepresents a person’s own academic work or that

compromises the academic work of another. It includes (but not limited) cheating on

assignments or examinations; plagiarizing, i.e., representing someone else’s ideas as if

they are one’s own; sabotaging another’s work.

If you are caught in an act of academic dishonesty or misconduct, you will receive an

“F” grade for the subject. The relevant Board of Examiners may impose other penalty

in relation to the seriousness of the offense.

IV. COURSE OUTLINE

Lecture

Schedule

Topics Reading Course Intended

Learning Outcomes

1 The International Monetary

System

Chapter 3 CILO1, CILO2

2 The Balance of Payments Chapter 4 CILO1, CILO2

3 The Foreign Exchange Markets Chapter 6 CILO1, CILO2,

CILO4

4 International Parity Conditions Chapter 7 CILO1, CILO2

Midterm Examination: October 22, 2015

5 Foreign Currency Derivatives and

Swaps

Chapter 8 CILO1, CILO2,

CILO4

6 Transaction and TranslationExposures

Chapter 10 CILO1, CILO2,CILO3

7 Global Cost and Availability of

CapitalChapter 12 CILO1, CILO2,

CILO3, CILO4

8 Sourcing Equity and Debt

Globally

Chapter 13 CILO1, CILO2,

CILO3, CILO4

Final Examination: December 10, 2015

fne306-01 international finance course document

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