School of Business
Chicago Campus
Syllabus
Global Finance B6206
Fall II 2007
Term II: October 25 to December 15
Friday 6:00 – 10:00 p.m.
Room TBA
Bob Castaneda, DBA, CPA, Instructor
Argosy University
COURSE SYLLABUS
B6206
Global Finance
Faculty Information
Faculty Name: Dr. Roberto Castaneda
Campus: Chicago Directed Study
Contact Information: 312-498-2028 ()
Office Hours: 8 to 8PM Mon thru Saturday
Short Faculty Bio:
Roberto Castaneda received his graduate degree (DBA) in Accounting from Argosy University/Schaumburg; (MM/MBA) in Marketing and Finance from Northwestern University, and his undergraduate degree in Accounting and Marketing from DePaul University. He is also a Certified Public Accountant. Dr. Castaneda has worked in senior finance positions at American Express, PepsiCo and McDonald’s Corporation in a number of international countries.
Course description:
This course explores managing international business and global competition with an understanding of international financial instruments, markets and institutions. Topics include foreign exchange risk, determination of exchange rates and interest rates, management of foreign exchange risk with forwards, options, and swaps; exchange rate forecasting; speculative currency attacks; and dynamics of the balance of payments with focus on understanding international capital flows, country debt and exchange rate fluctuations.
Course Pre-requisites: None
Required Textbook:
Shapiro, Alan C. (2006). Multinational Financial Management. (8/e). John Wiley & Sons. ISBN 0-471-73769-0
Technology: Pentium III CPU/ Windows 98; 128MB RAM printer; Microsoft Office; Acrobat (full version); Microsoft Internet Explorer 5.5 (PC), 5.0 (MAC), or Netscape Navigator 4.08; Norton Antivirus.
Course length: 7.5 Weeks
Contact Hours: 45 Hours
Credit Value: 3.0
Program Outcomes:
1. Communication
1.1. Oral/Written – Present business information orally and in writing using appropriate technology that is concise, clear, organized, supported, and persuasive in a professional manner appropriate to the business context
2. Critical Thinking/Problem Solving
2.1. Critical Thinking – Incorporate and synthesize information, theory, and practice in order to implement appropriate business actions
2.2. Problem Solving/Decision Making – Given a business situation, diagnose the underlying causes of the situation, evaluate possible solutions, and determine and defend appropriate course of action
2.3. Information Literacy – Access information from a variety of sources, evaluate the credibility of the sources, and apply that information to solve business problems
3. Team
3.1. Leadership – Describe the requirements of team members and leaders to work effectively and creatively in achieving team goals
3.2. Collaboration – Collect, categorize, and consider the views of all stakeholders
4. Ethics
4.1. Ethics – Identify the ethical principles related to personal and corporate behavior in specific business situations and explains the potential consequences
5. Diversity
5.1. Diversity – Identify the impact of both cultural and economic factors on the modern enterprise and explain the potential consequences
6. Analysis/Application
6.1. Applied Technology – Select and defend business technology solutions to typical business problems
6.2. Integration – Describe the interrelationship of the functional business areas of statistics, accounting, finance, marketing, operations, and strategy within the context of specific organizational goals
7. Financial Analysis
7.1. Given a specific business case, develop a financial strategy to reach business goals
Course Objectives:
1. Identify and analyze the economic forces and mechanisms which determine foreign exchange rates.
2. Given a case study, collaborate with your teammates, to analyze micro- and macro- economic factors in order to determine whether or not a firm should obtain financing in the international capital markets.
3. Given a case study, evaluate the optimal method for hedging foreign exchange risk exposure using particular financial derivatives.
4. Given a business situation, identify and analyze the effects of international financing on the balance sheet and value of a firm.
5. Examine different international financial instruments, markets and institutions that might affect the management of an international business in a globally competitive environment.
Assignment Table
Topics / Readings / Assignments1 / · Doing Business in a Global Financial System
· International Flow of Funds for Trade and Investment
· The Monetary System that Supports International Trade and Investment / Chapter 1, “Introduction: Multinational Enterprise and Multinational Financial Management”
Chapter 2, “The Determination of Exchange Rates”
Chapter 3, “The International Monetary System” / Read and comment on the issues discussed in an article on international trade (article should be 1-3 pages from a peer reviewed journal or magazine, paper should be 1-2 pages)
2 / · Basic Economic Principles of International Business
· The Interdependence of National Economies Trough Trade and Investment
· The Multiplicity of International Financial Risk Factors / Chapter 4, “Parity Conditions in International Finance and Currency Forecasting”
Chapter 5, “The Balance of Payments and International Economic Linkages”
Chapter 6, “Country Risk Analysis” / Write a 2-3 page paper in which you explore the effects of international trade and investment on the Balance of Payments Account and, by extension, on the national economy. Cite 2-3 academic sources.
3 / · Structure and Function of the International Foreign Exchange Market
· Instruments Used in Reducing Risk and Enhancing Profit in International Financial Transactions / Chapter 7, “The Foreign Exchange Market”
Chapter 8, “Currency Futures and Options Markets”
Chapter 9, “Swap and Interest Rate Derivatives” / Write a 4-5 page paper discussing the effects of a pegged vs. a floating exchange rate regime on the growth of industrialized vs. developing economies. Cite 3-4 academic sources.
4 / · Metrics and Techniques for Reducing Translation and Transaction Exposure
· Metrics and Techniques for Controlling International Economic Risk / Chapter 10, “Measuring and Managing Translation and Transaction Exposure”
Chapter 11, “Measuring and Managing Economic Exposure” / Research and comment on a case study related to the use of financial derivatives in hedging the foreign exchange risk of a multinational firm (2-3 pages) Cite your academic source(s).
5 / · Financing in National vs. International Capital Markets
· The Markets for Eurocurrencies / Chapter 12, “International Financing and National Capital Markets”
Chapter 13, “The Euromarkets” / Write a 4-5 page paper comparing the capital markets of the U.S. , Europe, China and India
6 / · Determining and Optimizing the Cost of Capital for International Investments
· Managing International Investment Portfolios / Chapter 14, “The Cost of Capital for Foreign Investments”
Chapter 15, “International Portfolio Investment” / Read and comment on a case study related to the determination of the cost of capital of a firm which successfully raised capital in the international markets (2-3 pages, not including tables and graphs). Cite 3-4 academic sources.
7 / · Corporate Strategy Drivers of Multinational Investments
· Capital Budgeting Issues and Opportunities for the Multinational Firm / Chapter 16, “Corporate Strategy and Foreign Direct Investment”
Chapter 17, “Capital Budgeting for the Multinational Corporation” / Write a 3-4 page paper discussing the advantages and disadvantages of a firm which owns an international financial investment portfolio. Compare and contrast with a firm with financial investments only in its won national economy. Cite 3-4 academic sources.
8 / · The Mechanism of Financing International Trade
· Short-Term Financing for International Business and the Firm’s Balance Sheet
· Management Challenges of the Global Financial System / Chapter 18, “Financing Foreign Trade”
Chapter 19, “Current Asset Management and Short-Term Financing”
Chapter 20, “Managing the Multinational Financial System” / Prepare a Power Point presentation discussing the opportunities and challenges faced by a firm which trades or invests internationally (15-20 slides). Cite 4-5 academic sources.
Grading Criteria:
The grading scale is as follows:
Percentage / Letter Grade93-100 / = / A
90-92.9 / = / A-
87-89.9 / = / B+
83-86.9 / = / B
80-82.9 / = / B-
77-79.9 / = / C+
73-76.9 / = / C
70-72.9 / = / C-
67-69.9 / = / D+
63-66.9 / = / D
60-62.9 / = / D-
<60 / = / F
Criteria for Term Paper:
GradeA = 90+ / Paper is in appropriate APA format, well thought out and provides excellent coverage of material
B = 80 – 89 / Paper is well thought out, but is missing one component of APA format OR coverage of material is only adequate
C = 70 – 79 / Insufficient number of references provided AND limited coverage
D = 60 - 69 / Paper is disorganized AND coverage is not adequate AND does not conform to APA format
F = <60 / Evidence of plagiarism OR paper not submitted
Criteria for Class Presentation
GradeA = 90+ / Presentation is well organized and provides excellent coverage of the topic area; informative handouts provided to the instructor and classmates
B = 80 – 89 / Presentation is well organized and provides good coverage of the topic area
C = 70 – 79 / Coverage of material is marginal; presentation is slightly disorganized
D = 60 - 69 / Presentation is disorganized and does not provide adequate coverage of the topic area
F = <60 / Presentation was not completed by student
Criteria for Class Participation
GradeA = 90+ / Student actively participated in discussions in >80% of class sessions; nearly all comments were thought provoking and incorporated material from the assigned readings
B = 80 – 89 / Student actively participated in discussions in >80% of class sessions; most of the comments were thought provoking and incorporated material from the assigned readings
C = 70 – 79 / Student participated in discussions in >70% of class sessions; comments/questions demonstrate a surface level understanding of course topics
D = 60 - 69 / Student participated in <70% of class sessions; comments/questions did not demonstrate an understanding of course topics
F = <60 / Student did not participate in class discussions
Attendance/participation / 25%
Weekly Assignments / 20%
Final paper / 35%
Optional / 10%
Optional / 10%
100%
Library:
All resources in Argosy University’s online collection are available through the Internet. The campus librarian will provide students with links, user IDs, and passwords.
Library Resources: Argosy University’s core online collection features nearly 21,000 full-text journals and 23,000 electronic books and other content covering all academic subject areas including Business & Economics, Career & General Education, Computers, Engineering & Applied Science, Humanities, Science, Medicine & Allied Health, and Social & Behavior Sciences. Many titles are directly accessible through the Online Public Access Catalog at http://library.argosyu.edu. Detailed descriptions of online resources are located at http://library.argosyu.edu/misc/onlinedblist.html.
In addition to online resources, Argosy University’s onsite collections contain a wealth of subject-specific research materials searchable in the Online Public Access Catalog. Catalog searching is easily limited to individual campus collections. Alternatively, students can search combined collections of all Argosy University Libraries. Students are encouraged to seek research and reference assistance from campus librarians.
Information Literacy: Argosy University’s Information Literacy Tutorial was developed to teach students fundamental and transferable research skills. The tutorial consists of five modules where students learn to select sources appropriate for academic-level research, search periodical indexes and search engines, and evaluate and cite information. In the tutorial, students study concepts and practice them through interactions. At the conclusion of each module, they can test their comprehension and receive immediate feedback. Each module takes less than 20 minutes to complete. Please view the tutorial at http://library.argosyu.edu/infolit/
Academic Policies
Academic Dishonesty/Plagiarism: In an effort to foster a spirit of honesty and integrity during the learning process, Argosy University requires that the submission of all course assignments represent the original work produced by that student. All sources must be documented through normal scholarly references/citations and all work must be submitted using the Publication Manual of the American Psychological Association, 5th Edition (2001). Washington DC: American Psychological Association (APA) format. Please refer to Appendix A in the Publication Manual of the American Psychological Association, 5th Edition for thesis and paper format. Students are encouraged to purchase this manual (required in some courses) and become familiar with its content as well as consult the Argosy University catalog for further information regarding academic dishonesty and plagiarism.
Scholarly writing: The faculty at Argosy University is dedicated to providing a learning environment that supports scholarly and ethical writing, free from academic dishonesty and plagiarism. This includes the proper and appropriate referencing of all sources. You may be asked to submit your course assignments through “Turnitin,” (www.turnitin.com), an online resource established to help educators develop writing/research skills and detect potential cases of academic dishonesty. Turnitin compares submitted papers to billions of pages of content and provides a comparison report to your instructor. This comparison detects papers that share common information and duplicative language.
Americans with Disabilities Act Policy
It is the policy of Argosy University to make reasonable accommodations for qualified students with disabilities, in accordance with the Americans with Disabilities Act (ADA). If a student with disabilities needs accommodations, the student must notify the Director of Student Services. Procedures for documenting student disability and the development of reasonable accommodations will be provided to the student upon request.
Students will be notified by the Director of Student Services when each request for accommodation is approved or denied in writing via a designated form. To receive accommodation in class, it is the student’s responsibility to present the form (at his or her discretion) to the instructor. In an effort to protect student privacy, the Department of Student Services will not discuss the accommodation needs of any student with instructors. Faculty may not make accommodations for individuals who have not been approved in this manner.
The Argosy University Statement Regarding Diversity
Argosy University prepares students to serve populations with diverse social, ethnic, economic, and educational experiences. Both the academic and training curricula are designed to provide an environment in which students can develop the skills and attitudes essential to working with people from a wide range of backgrounds.
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