International Financial Management

Curriculum Guideline

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Course
FINC 3305
Discontinued
No
Course Code
FINC 3305
Descriptive
International Financial Management
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
202220
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 4 Hours
Method(s) Of Instruction
Lecture
Learning Activities

Material will be presented within a lecture format.

Course Description
This is an introductory course, covering a range of financial instruments, interest rate swaps, future contracts in foreign currencies, convertible currency bonds, operation of financial markets, integration and deregulation of global financial markets, the European monetary system, the role of central banks in world economies, globalization and the growth of derivatives, world trade and the currency crises. The balance of international transactions, the current and capital accounts, syndicated credit arrangements for large global projects, interest parity, hedging, and dual-currency bonds will also be covered.
Course Content

Upon introduction of theory, students will be exposed to practical financial applications, and case studies.  Where appropriate, EXCEL-based templates will be used as part of the application component and Canadian corporations with international operations will be used to exemplify theory.

 

  1. Introduction to the international financial systems
    • WTO rules and regulations and globalization
    • globalization and the growth of derivatives
    • central banks and the balance of payments
    • international financial policies.
  2. Foreign exchange markets
    • the mechanics of currency trading
    • settlement dates
    • exchange controls
    • forwards, swaps, and interest parity
    • forward markets, and interest rates
    • margin requirements
    • futures contracts, and forward contracts
    • dual currency markets
    • interest parity with bid / asked spreads
    • economic functions of futures markets
    • foreign currency options
    • options on spot exchange
    • options on foreign currency futures
  3. Eurocurrency markets
    • eurobanking and eurocurrency centres
    • eurocurrency futures and options
    • syndicated eurocredits
    • implementation of euro
  4. International bond markets
    • new issue procedures
    • eurobond valuation and hedging
    • caps, floors, and collars
  5. Forecasting in international financial markets
    • purchasing power parity 
  6. The Asian banking systems
    • currency crises
    • the exchange rate mechanisms
    • the IMF interventions
Learning Outcomes

At the end of the course, the successful student should be able to:

  1. master the basic theories of international finance;
  2. apply basic theories of finance into case analysis or simulated cases.
Means of Assessment

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.

Textbook Materials

Textbooks and Materials to be Purchased by Students

 

Textbooks and materials will be chosen from:

 

  • Das, D.K.  International Finance: Contemporary Issues, latest ed.  New York: Routledge Publishing. 
  • Dufey, G. and Giddy, I.H.  Cases in International Finance, latest ed.  New York: Addison- Wesley.
  • Eun, C. and Resnick, B.  International Financial Management, latest ed.  McGraw Hill Irwin.
  • All students are required to have a financial business calculator.
Prerequisites

ECON 1250 and (FINC 2345 or FINC 2340)

Equivalencies

Courses listed here are equivalent to this course and cannot be taken for further credit:

  • No equivalency courses
Which Prerequisite

FINC 4405