ADVANCED TOPICS IN FINANCE Akbar Torbat, Ph

Calif= ornia State University, Dominguez Hills

College= of Busines= s Administration and Public Policy

FIN = 488-01 Multinational Financial Transactions

FALL 2004

MW 4:00 to 5:15 p.m., Room SBS E 126<= /o:p>

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Instructor:= Dr. Akbar Torbat=

Office: Room EAC 706<= /span>= , hours: MW = 5:30 to 7:00 p.m.

Phone: (310) 243-2403

E-mail: atorbat@csud= h.edu=

COURSE DESCRIPTION:

This is an introducto= ry level course that provides students with the basic understanding of international financial transactio= ns, markets, institutions and instruments for investments in a multinational setting.

Prerequisite: FIN 360 Business Finance

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COURSE CONTENTS:

The course covers maj= or topics in international finance, including balance of payments accounts, ri= sk measurement, foreign exchange, international mon= etary systems, international capital market, country risk analysis, joint venture, foreign direct and portfolio investment, financing international trade, cou= ntertrade, and international banking.

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READING MATERIALS:=

= The required textbook for the course is Inter= national Financial Management<= /span> by Jeff Madura, 7th Edition, ISBN 032416551x.

You are expected to k= eep up with international financial news throughout the course. For review of international news a= nd articles you can refer to The Wall Street Journal, Financial Times, The Economist, Finance and Development, and Euromoney. You should also refer to the websites such as the United Nations Conference on Trade and Development at www.unctad.org, International Monetary Fund a= t www.imf.org, World Trade Organization at www.wto.org, Organization of the Petroleum Expo= rting Countries www.opec.org, Financial Times at www.ft.com, and the Economist a= t www.economist.com for obtaining information and data relevant to the course. Some additional reading mate= rials will be placed on reserve in the library for your reference.

STUDENT LEARNING OBJECTIVES<= /b>: =

Upon completion of th= is course students will be able to:

Demonstrate Knowledge of International Finance, including inte= rnational capital market and money market from both the theory and practice pers= pectives.

Describe the financial aspects of multinational enterprise (MN= E), including foreign direct and portfolio investments, impact on host countries, derivatives instruments and hedging techniques.<= /span>

Understand balance-of-payments accounts.

Evaluate international financial accounting and taxation.=

Conduct research in the field of international finance.

COURSE EXPECTATION= S:

Each student is expec= ted to read the assigned material and prepare the written assignments prior to class. The university standard for course workload is three hours of outside work for every hour in class, i.e., a 3-unit course requires 9 hour= s of work/week.

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EVALUATION:=

= Grade for the course will be based on a research paper (20%), 2 midt= erm exams (20% each), a final exam (30%), class participation and problem solvi= ng (10%). Students are expected to attend the class regularly and participate in class-discussions. Students who actively take part in= class discussions and make meaningful contributions will be rewarded. There will = be no make‑up exams. If th= ere is a valid reason, the score for a missed midterm exam will be added to the fi= nal exam. The total scores will be ranked and letter grades will be assigned according to the university catalogue. The following scale will be used to determine the letter grades.

A.......... (93-100), A-........ (90-92), B+........ (87-89), B......... (80-86), B- ...... (77-79)

C+..... (74-76), C...= .... (67-73), C-........ (60-66), D+... 57-59, D ….. (50-57), F ….. (0-= 49)

ACADEMIC INTEGRITY:

Cheating or plagiarism is considered a gross violati= on of the University’s academic standards and is subjected to discipline according to the California Code of Regulations.

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HOMEWORK:

Some questions form t= he textbook will be assigned for your homework on an on going basis. Homework = will not be collected.

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RESEARCH PAPER:

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The class will be div= ided to teams consisting of 2 students each. Each team is required to write a resea= rch paper about 20 pages in length. Each team will study and analyze one of= the topics listed below. Each team should give me the names of its membe= rs and the topic chosen by the beginning of the 3^rd week. An abstra= ct of the paper is due after the sixth week and a draft version is due by the = end of the 14^th week. Each team will present its research paper in class, make the necessary revisions for improvement and turn in the complet= ed paper by the end of the semester. Presentation time is about 15 minutes followed by a few minutes of questions and answers.

Your research pap= er should be up-to-date and reflects the latest information related to the top= ic you are analyzing. The paper must be divided into sections, and team members’ names as well as the sections assigned to each member should be on the title page. A Table of Contents, indicating the sections and page numbers, should follow the title page of t= he report. If you need a general guideli= ne on how to write a research paper, you can refer to Writing Business and Economics Papers by Jessamon Dawe or a sim= ilar book. Full citation of references used is required according to a standard format. For citation formats refer to A Manual for Writers by Kate Turabian.

You will apply the co= ncepts and theories discussed in this course to the topic you analyze and write a paper explaining your findings.

Study of capital market in a particular country

The impact of September 11 events on inflow of FDI to a partic= ular country in the Middle East.

The impact of September 11 events on the U.S. –based multinational corporations.

Analysis of policies towards foreign investments in a developi= ng country.

Assessment of capital outflow versus capital inflow in a particular country.

Analysis of buyback scheme in international investment

Impacts of multinational corporation investments on a developi= ng country.

Impacts of the U.S. extraterritorial measures against multinational corporations’ investment in a particular country.

TENTATIVE SCHEDULE

Weeks

Topics

Chapters

1=

An overview of Mult= inational Financial Management

1=

2=

Monday September 6, Labor day Holliday,= No class

Wednesday, Instruct= ions for research paper

3=

International Flow = of Funds

2=

4=

International Finan= cial Markets

3=

5=

Exchange rate determination and currency derivatives

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6=

Monday October 4= , Exam 1

Wednesday, Governme= nt Influence on Exchange rates

6=

7=

International Arbit= rage, interest rate parity, and Fisher effect.

7, 8

8=

Foreign Direct Inve= stment

13

9=

Country Risk analys= is

16

10

Monday November = 1, Exam 2

Multinational cost = of capital and capital structure

17

11

Financing Internati= onal Trade

19

12

Forecasting exchange rates

9=

13

Measuring and managing exposure to exchange rates

10,11

14

Student presentatio= n

15

Review and student presentation

16

Monday December = 13, Final Exam 4:00 to 6:00 p.= m.

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Weeks	Topics	Chapters
1=	An overview of Mult= inational Financial Management	1=
2=	Monday September 6, Labor day Holliday,= No class Wednesday, Instruct= ions for research paper
3=	International Flow = of Funds	2=
4=	International Finan= cial Markets	3=
5=	Exchange rate determination and currency derivatives	4 and 5<= /span>
6=	Monday October 4= , Exam 1 Wednesday, Governme= nt Influence on Exchange rates	6=
7=	International Arbit= rage, interest rate parity, and Fisher effect.	7, 8
8=	Foreign Direct Inve= stment	13
9=	Country Risk analys= is	16
10	Monday November = 1, Exam 2 Multinational cost = of capital and capital structure	17
11	Financing Internati= onal Trade	19
12	Forecasting exchange rates	9=
13	Measuring and managing exposure to exchange rates	10,11
14	Student presentatio= n
15	Review and student presentation
16	Monday December = 13, Final Exam 4:00 to 6:00 p.= m.