Course Syllabus

Office Hours: By appointment

Cell Phone: 00355-69-20-25-374

E-mail: arbenzibri@unyt.edu.al

          

Course Purpose

The focus of this course is to provide the student with an understanding of the international financial markets functioning, their importance and their role into promoting economic stability and growth. The course will provide an overview of important issues of international financial markets, institutions and economies in the context of the management of an international business.

 

Required Readings, Text

Madura, Jeff; Fox, Roland (2011), International Financial Management, 2nd edition, Cengage Learning.

 

 

Required Additional Materials

During class, students will be supported with additional reading materials required to gain a broad/in depth comprehension of specific lectures.

 

Course Objectives

 

By the end of this course, the B.Sc. Candidate should answer to the following questions:
  • A complete macroeconomic knowledge of operations, problems and risks of multinational corporations, as well as the international flow of funds and the exchange rate determination.
  • A complete microeconomic knowledge of the managerial aspects of international financial management, including exchange rate risk management, long-term and short – term assets and liabilities management, direct foreign investments, capital budgeting, risk analysis and capital structure decisions.
  • A comprehension of international financial movements, so as to evaluate the complexity of financial markets and to assess the risk of various types of financial institutions and markets.
  • A development of analytical and critical-thinking skills necessary to understand the globalization effects on the managerial prospective of a financial institution.

 

 

Content of the Course

 

  1. Introduction to International Financial Management
  2. International Flow of Funds
  3. International Financial Markets
  4. Exchange Rate Determination and History
  5. International Arbitrage and Interest Rate Parity
  6. Relationship Among Inflation, Interest Rates and Exchange Rates
  7. Forecasting Exchange Rates and Country Risk
  8. Mid Term Exam
  9. Currency Derivatives
  10. Managing Transaction Exposure
  11. Managing Economic Exposure and Translation Exposure
  12. International Capital Budgeting
  13. Long Term Debt Financing
  14. Financing International Trade

 

Course Requirements

 

Participation and Case Studies Discussions: Participation extends beyond mere attendance. Expect your instructor to keep track of how often you contribute to class discussion (as a whole). Attendance is compulsory as per the University rules. The student may miss up to three classes without penalty – the first two absences count whether you have a good excuse or not. Each absence beyond the first three will cost you points off of your participation grade. The only exceptions to this rule are severe illness (doctor’s note required) and UNYT approved trips/activities. Appropriate documentation for absences beyond the first three is necessary the class day directly before or after the one you miss. In general: this class is intensive and interactive. Missing class could seriously affect your grade. Students are reminded not to approach the instructor for copies of the previous week’s materials immediately before, during, or immediately after class. Students are expected to collect materials from their classmates.

Students are expected to be familiar with math concepts and calculations. Students must have simple calculators in class.

 

Homework: The weekly assignments are very important for fulfilling the learning objectives stated above and exam preparation. Assignments will be given every week at the end of the class and should be submitted next week before class hard copy.

 

Trading Project: In order to extend the understanding of the course and resolve practical issues, students will be asked to form teams composed by two members. Each team will create and manage a portfolio of 4 assets (international equities) through the yahoo finance portfolio simulation tool. The criteria for selecting each asset is: 1) Stocks from 4 different countries, 2) Stocks from 4 different industries. The fund available to be invested for each asset is USD 10,000. The aim of this project is to test/practice how the international markets and currency exchange fluctuations influence investment performance. The performance of the fund will be reported, but will not be part of the overall course assessment. Each team should record every business day the closing price of its portfolio.  A report should be submitted every two weeks of the international investment project before the beginning of the class hard copy. The periodical reports should contain 200-300 words. A final report of the International Investment Project that covers the whole period of the project should be submitted on the last lecture day. All reports should focus on the 1) influence of international currency exchange; 2) world economic events; 3) international market fluctuations on the performance of the four stocks included in their portfolio. The final report should contain 1,000-1,200 words. Each team will make a ten minute presentation regarding each portfolio’s performance. It will be part of the individual project assessment. More details will be given in the first lecture.

 

         Criteria for Determination of Grade, including Evaluation Methods

Class Participation and Case studies discussions 10%
Homework assignments 10%
International Investment Project

Periodical Reports

Presentation

Final Reports

20%

10%

3%

7%

Mid Term Exam 25%
Final Exam 35%

 

 

Letter Grade Percent (%) Generally Accepted Meaning
      A 96-100 Outstanding work
      A- 90-95
      B+ 87-89 Good work, distinctly above average
      B 83-86
      B- 80-82
      C+ 77-79 Acceptable work
      C 73-76
      C- 70-72
      D+ 67-69 Work that is significantly below average
      D 63-66
    D- 60-62
    F 0-59 Work that does not meet minimum standards for passing the course

        

         Bibliography (Additional Readings)

 

Alan C. Shapiro, Peter Moles (2014), International Financial Management, John Wiley & Sons.

        Technology Expectations.

Students should be familiar with Excel and PowerPoint. Continuing and regular use of e-mail is expected.

 

Learning Difficulties

As a service to its students UNYT has created a series of support centers. For support related to study skills and time management, the Academic Support Center offers students tutoring and coaching. The Writing Center gives students feedback and help with papers and other writing assignments. If you feel that you have any exceptional learning difficulties or serious problems that interfere with your studies, you can stop by the UNYT Counseling Center. For information on any of these centers, please contact Dr. Cenko, your academic advisor or the course instructor.

 

         Date Prepared and By Whom Prepared

 

October 2015                          Arben Zibri

 

Faculty: Business &Economics.

Department: Economics.

Grade: Undergraduate.

Majors: Business.

Study Fileds: Finance.

Course Year: 3.

Course Program: ESC.

Scheduele: SAT 09-13:00

Instructor: Arben Zibri

Credits: 4

Prerequisite: Corporate Finance, senior status