FINANCE 570
SEMINAR IN
INTERNATIONAL FINANCIAL MANAGEMENT
SPRING 2011
Instructor/Phone: Dr. Joe Greco (657) 278-2375
Office: SGMH 5174
Office Hours: TTH 2:30 – 3:30 PM, Tues 6 – 6:45PM
Course Description
The course studies the international financial practices of global corporations. Beginning with a review of the trade cycle and the identification of risk within the environment of international financial management, the methods of payment and shipment used to mitigate risk are examined. Next, the mechanics of the foreign exchange markets are analyzed followed by a theoretical explanation of the determination of exchange rates. We then explore the methods for the risk management of the global corporation’s financial system. It is strongly recommended that you keep abreast of current international financial news by reading a reliable source of daily international news.
** Approximately one third of the class meetings in the course will be online. See class schedule for specific dates.
Course Overview
The course is structured so that each class meeting has two time segments, one hour each. In this class we employ the Ivey Case Method to analyze cases studies. For more information on the Method, visit www.ivey.uwo.ca. Assigned activities include readings, case study methodologies, spreadsheet modeling, and group presentations. Although the lectures will cover the theory and financial techniques for analysis, it is required that students read ahead in the relevant chapters.
Required Texts Alan C. Shapiro, Multinational Financial Management, 9th edition, Prentice Hall.
Thomas L. Friedman, The Lexus and the Olive Tree, 1999, Anchor Books
Robert Reich, Supercapitalism
Academic Honesty
The Finance Department policy requires that students engaging in academic dishonesty receive a grade of F for the work involved. Plagiarism is closely monitored. We will follow the policy strictly.
Make-Up Policy
When you miss a class or your group meetings, it creates a serious risk to your success in the class. It also deprives the group of your feedback for which there can be no makeup.
Grading Policy
Assessment Statement –
The main purpose of the degree program at the College of Business & Economics (College) at Cal State Fullerton is to provide you with the knowledge and skills that prepare you for a successful career in business. In order to assist us in achieving this goal, we will use a number of assessment tools to track your progress throughout the College curriculum. Please expect to participate in College assessment activities in several of your courses while at CSU, Fullerton. As you do so, you will assist us in identifying our program’s strengths and weaknesses as well as areas for potential improvement. In other words, you are making an important investment in the value of your degree.
Outsourcing Case Study 50
Exams (2 @ 50 points each) 100
Assignments 40
Panel Presentation 50
Case Analysis and Presentation 60
Total 300points
EXAMS
There will be two (2) multiple choice exams that will require you to buy a Form 288 scantron for your answers. Reviews of both exams appear on the Black board class site.
ASSIGNMENTS
During the semester, there will be a series of individual and group assignments that are due at specific times. Announcements of assignments and due dates will be made via Black board.
PANEL PRESENTATIONS
The set up and grading of the panel presentation appears on the Black board class site.
CASE ANALYSIS AND PRESENTATIONS (in Group)
The instructor will assign members to each group. Once at the end of the semester, each group prepares a power-point presentation to the class to accompany each case.
Criteria for Evaluation of Oral Case Analysis and Presentation
POINTS
Research and Analysis 20
Comprehension of Content 20
Case Evaluation 10
Communication skills 10
60
Research and Analysis (20):
The points represent how well the case was analyzed by using the course techniques: background research for the case, spreadsheets and the Ivey Case Study Techniques in the power point presentation.
Comprehension of Content (20):
The points represent how much, how often, and with what precision financial concepts were applied in the case analysis.
Case Evaluation (10):
The evaluation points represent how well the conclusions, alternatives, or solutions were presented and supported with the evidence and the Ivey case methodology.
Communication Skills(10)
Each group will present orally and each member must present some part of the analysis. Points for communication skills represent graphics, i.e. how well the power point was developed with points for slide layout, colors, charts, and professional appearance. Oral skill points represent how well the presentation was presented to the class with respect to professional dress, clear and rehearsed oral delivery as well as how well student questions were fielded by the group. Reading from note cards is a sign of a poorly prepared presentation and will cause a mandatory LOSS of points to the group’s grade.
CLASS SCHEDULE
WEEK /DATE
/Chapter
Readings
/TOPIC
1
/ JAN 26 / 1 / · Introduction to the MNC / LIVE2 / FEB 2 / 18 / · Financing Trade / ON LINE
3
/FEB 9
/ 27
/ · Determination of Exchange Rates· The Foreign Exchange Market / LIVE
4 / FEB 16 / DVD / · The Ethics of Enron
/ ON LINE
5 / FEB 23 / 8
4 / · Currency Futures/Options
· Parity Conditions
/ LIVE6 /
MAR 2
/FIRST EXAM (1, 2, 4, 7, 8, 18 and Enron)
/ LIVE7 / MAR 9 /
6
/· Country Risk Analysis
/ ON LINE8 / MAR 16 / 11 / · Economic Risk / LIVE
9 /
MAR 23
/ 12 / · International Capital Markets / ONLINE10 / APR 6 / 14, 17 / · Cost of Capital
· Capital Budgeting / LIVE
11 / APR 13 / 19 / · Current Asset Mgmt / ONLINE
12 / APR 20 / 20 / · Managing the MNC’s Financial System / LIVE
13 / APR 27 / PANEL DISCUSSION:
ENRON,
LEXUS AND THE OLIVE TREE,
SUPER CAPITALISM / LIVE
14 / MAY 4 / SECOND EXAM (6, 11, 12, 14, 17, 19, 20, Lexus and SuperCapitalism) / LIVE
15 / MAY 11 / Case Study Presentations – In Class / LIVE
Finals
Week / 7:30-9:20 PM / Case Study Presentations – In Class / LIVE
4