COURSE UNIT TITLE

: INTERNATIONAL FINANCIAL MANAGEMENT

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
IBS 4321 INTERNATIONAL FINANCIAL MANAGEMENT ELECTIVE 3 0 0 5

Offered By

International Business and Trade

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR BERNA KIRKULAK ULUDAĞ

Offered to

BUSINESS ADMINISTRATION
International Business and Trade
International Trade and Business (English)

Course Objective

The aim of this course is to provide the students with information about history of international monetary system and environment of international financial management to analyze foreign exchange markets, parity conditions and balance of payments.

Learning Outcomes of the Course Unit

1   Describe the history of international monetary system pointing out the Gold Standard, Bretton-Woods and hybrid systems, and European Monetary System. (Level 1).
2   Explain the international financial environment pointing out the origins and effects of the financial crises. (Level 2).
3   Identify the basic factors affecting exchange rates, pointing out different exchange rate systems such as free float, managed float and fixed rate systems. (Level 2).
4   Describe the organization of exchange rate markets in order to distinguish between the spot and forward market and different methods of foreign exchange quotations. (Level 2).
5   Assess currency and interest rate arbitrage opportunities in order to calculate the profits associated with these arbitrage opportunities. (Level 3).
6   Identify the links between domestic economic behavior and the international flows of goods and capital in order to describe how these links are reflected in the various balance of payments account. (Level 2).
7   Explain Purchasing Power Parity, Fisher Effect, International Fisher Effect, Interest Rate Parity, and Forward Rates pointing out the theoretical relationships among spot exchange rates, forward exchange rates, inflation rates, and interest rates. (Level 2).
8   Explain how currency futures and options contracts and swaps can be used in order to manage currency risk. (Level 2).

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

FIN 2002 - BUSINESS FINANCE

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Comparative Corporate Governance and Financial Goals
2 The International Monetary System
3 The Balance of Payments
4 Country Presentations: The Balance of Payments
5 The Foreign Exchange Market
6 The Foreign Exchange Market
7 Discussion: Financial Crises
8 Foreign Exchange Rate Determination and Forecasting
9 International Parity Conditions
10 International Parity Conditions
11 Foreign Currency Futures
12 Foreign Currency Options

Recomended or Required Reading

Eun & Resnick. International Financial Management. McGrawHill
Eiteman, D. K., Stonehill, A., Moffett, M. (2009). Multinational Business Finance, 12th Edition, Addison Wesley

Planned Learning Activities and Teaching Methods

Lectures
Problem Solving
Presentations

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MT Midterm
2 QZ Quiz
3 PRS Presentation
4 FN Final
5 FCG FINAL COURSE GRADE MT * 0.30 +QZ * 0.20 + PRS * 0.10 + FN * 0.40
6 RST RESIT
7 FCGR FINAL COURSE GRADE (RESIT) MT * 0.30 + QZ * 0.20 + PRS * 0.10 + BUT * 0.40


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will define the history of international monetary system
2. The learner will explain the international financial environment (e.g. the origins and effects of the financial crises)
3. The learner will identify different exchange rate systems and the basic factors affecting exchange rates.
4. The learner will describe the organization of exchange rate markets
5. The learner will assess currency and interest rate arbitrage opportunities
6. The learner will identify the links between domestic economic behavior and the international flows of goods and capital
7. The learner will explain Purchasing Power Parity, Fisher Effect, International Fisher Effect, Interest Rate Parity, and Forward Rates
8. The learner will explain how the financial derivative instruments can be used to hedge currency risks.

Language of Instruction

English

Course Policies and Rules

1.Attending at least 70 percent of lectures is mandatory.
2.Plagiarism of any type will result in disciplinary action.

Contact Details for the Lecturer(s)

E-mail: guluzar.kurt@deu.edu.tr
Tel: 0 232 3018229
Room No: 214/A

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 12 3 36
Tutorials 0 0 0
Preparation for midterm exam 0 0 0
Preparing assignments 3 15 45
Preparation for final exam 1 20 20
Preparations before/after weekly lectures 1 15 15
Preparing presentations 0 0 0
Final 1 1,5 2
Midterm 0 0 0
Quiz etc. 0 0 0
TOTAL WORKLOAD (hours) 118

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10PO.11PO.12PO.13PO.14PO.15
LO.15554
LO.25554
LO.35554
LO.45554
LO.555534
LO.65554
LO.75554
LO.854