FIN 394.3 GLOBAL FINANCE
UTC 1.132 MW 930-11 UNIQUE # 03740
ProfessorProf. Steve Magee
OfficeCBA 6.264
Office Hours MW 2-230in my office orright after class in the classroom
Phone 471-5777
Course Web PageAll Class Handouts on Blackboard Under Course Documents
ReadingsGet the Readings Packet at the Copy Center, 3rd Floor GSB
Text at the Coop: Thomas J O’Brien, Introduction to Foreign Exchange Rates. Business Expert Press, 2013.
Teaching AssistantTBD
TA Office HoursVia email and TBD
Course Objectives
Global Finance teaches you the foundations of Global Finance. These include a number of issues in multinational corporate finance, exchange rates, global money markets, the economic comparative advantage of countries, companies and managers; international market arbitrage relationships;the managerial implications of interest rate parity and global markets.
Required Materials
The primary required reading is the Magee Course Packet at the Copy Center in the GSB and the O’Brien textbook above. All Lecture Notes and other class handouts will be under “Course Documents” on Blackboard.
Course Requirements and Grading
Make sure that you get all of the materials handed out in class, such as the lecture notes and any supplementary readings. If you must miss a class, please get any class handouts and lecture notes from Blackboard or from a dependable classmate. Class participation is not explicitly taken into account, although it may matter if you are on the borderline between grades at the end of the semester.
Grades. Your grade in this course will be determined using the following weights:
Exam 1 Wednesday Feb 2650%(one page 8.5x11 notes, front and back OK)
Exam 2 Wednesday Apr 2350%(one page 8.5x11 notes, front and back OK)
Final Exam (optional, only if you want to raise your grade or you miss an exam)
What is on the Exams: About 80% of the material on the exams will be variations on the lectures and the materials referred to in class or on the class handouts. The other 20% will be from the readings on which the lectures are based. If you miss an exam, you must take the Final Exam which replaces it.The numbers below from 1-7 are the topic numbers on the reading list.
Week 1Jan 13 151. The Dollar and Exchange Rates,
Week 2Jan 20 221. Europe and Comparative Advantage
Week 3Jan 27 292. Trade, Deficits, and the Missing Middle
Week 4Feb 3 53. Purchasing Power Parity
FX Rates & Virtual States
Week 5Feb 10 123. Currency Crises and Global Markets
Week 6Feb 17194. A Financial Market Theory of Multinational Corporations,
Week 7Feb 24 26 5. Options and FX Forecasting
Feb 26Exam 1
Week 8Mar 3 5 MBA Global Trips
Currency Wars
Week 9Mar 10 12Spring Break
Week 10Mar 17 19
Week 11Mar 24 265. Interest Rate Parity and Globalist States
Week 12Mar 31 Apr 26. Hedging Transaction Exposure & US Hegemon Decline
Week 13Apr 7 97. Translation Exposure
Week 14Apr 14 167. Country Risk,
Week 15Apr 21 237. Sinking Globalization and Exam 2
Week 15 Apr 23Exam 2
Week 16Apr 28 30
Week 17May 7Final Exams Begin
McCombs Classroom Professionalism Policy
The highest professional standards are expected of all members of the McCombs community. The collective class reputation and the value of the Texas MBA experience hinges on this.
Faculty are expected to be professional and prepared to deliver value for each and every class session. Students are expected to be professional in all respects.
The Texas MBA classroom experience is enhanced when:
- Students arrive on time.
- Students display their name cards.
- Students are fully prepared for each class.
- Students attend the class section to which they are registered.
- Students respect the views and opinions of their colleagues. Disagreement and debate are encouraged but intolerance for the views of others displays a lack of leadership skills.
- Laptops are closed and put away except during class computer sessions.
- Phones and wireless devices are turned off.
- Minimize unscheduled personal breaks. Disruptions impose negative externalities on others.
Academic Dishonesty
Dishonest students lose the respect of their classmates. As the instructor for this course, I agree to observe all the faculty responsibilities described in the Honor System. The responsibilities for both students and faculty with regard to the Honor System are described on the website below: You can get help from your classmates on the Take Home exam but you CANNOT help each other on the In-Class Exam.
The Honor Pledge
The University of Texas at Austin McCombs School of Business requires each enrolled student to adopt the Honor Pledge:
"I affirm that I belong to the honorable community of The University of Texas at Austin Graduate School of Business. I will not lie, cheat or steal, nor will I tolerate those who do. I pledge my full support to the Honor System. I agree to be bound at all times by the Honor System and understand that any violation may result in my dismissal from the Graduate School of Business."
Students with Disabilities
Upon request, the University of Texas at Austin provides appropriate academic accommodations for qualified students with disabilities. Services for Students with Disabilities (SSD) is housed in the Office of the Dean of Students, located on the fourth floor of the Student Services Building. Information on how to register, downloadable forms, including guidelines for documentation, accommodation request letters, and releases of information are available online at the web address below. Please do not hesitate to contact SSD at (512) 471-6259, VP: (512) 232-2937 or via e-mail if you have any questions.