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Department
of Accounting, Finance, & Law Finance
426: Multinational Financial Management, Section 800 (CRN:
11112) Spring 2006 Instructor and
Contact Information
Office Hours: Tuesdays: 4:00 PM – 6:00 PM Wednesdays: 11:00 AM – 2:00 PM Thursdays: 10:00 AM – 10:30 AM and by appointment Students
having trouble keeping up with course progress should not hesitate to seek help
from tutors (if available) or
the instructor. Nor should they be
shy to express their concerns with issues that might adversely affect their
academic performance. Remember,
there will be no remedy, once the semester is concluded. Course Information and Requirements
Course Philosophy Multinational Financial Management is a demanding course, which goes beyond the fundamental corporate financial issues and commands considerable work on the student’s part. Its complexity and quantitative nature will make even the very bright students find it necessary to go over lecture notes and chapters carefully several times. Students must keep up with the class discussions and assigned readings in the text. Regular class attendance is essential if students intend to perform well in the course. To facilitate effective learning and incorporate available technologies, most course materials will be posted on-line for students’ convenience. NEVERTHELESS, THIS COURSE IS NOT A DISTANCE LEARNING CLASS JUST BECAUSE MOST COURSE MATERIALS ARE AVAILABLE ON-LINE. Course
Learning Objectives The objective of this course is to study the theory and
practice of multinational financial management.
It extends financial management to the international environments.
Upon completion of this course, students should gain an understanding of
principles behind the following key issues.
Throughout this course, readings and lectures will cover critical issues
that form the context for multinational financial management. Coverage will
include ethics and social responsibility, the political, legal and regulatory
influences on international financial issues, and the multinational financial
issues relating to new technology, the environment, and cultural diversity. The lectures, class
discussions, worksheets, computer sessions, homework assignments, projects and
presentations, case studies, problem sessions, quizzes, and examinations will
provide students the opportunity to develop and demonstrate various important
business skills. Specific skills
that will be addressed in this course include critical thinking, quantitative
skills, decision-making, applied research techniques and the synthesis of
knowledge from various sources, teamwork and interpersonal skills, written and
oral communication, and the use of information technology. Assignments
Examinations To
prepare for the two examinations, a midterm and a final, students are
responsible for understanding the materials covered in the class discussions and
the related textbook chapters or sections. Should
a student miss any of the exams, a makeup exam will be given for valid
medical reasons with a physician’s note.
Nonetheless, the student (or a friend or relative of the student) should
inform the instructor via email or phone before the exam begins.
Permission of a rescheduled midterm or final exam for other non-medical
reasons, limited to only serious legal matters or family emergencies, should be
requested well ahead of time with documented evidence.
Reasons (not limited to) such as taking a non-refundable vacation, family
reunion, military training (any conflict should be resolved before registering
this course), attending a wedding (except for your own), business trip (unless
not doing so seriously compromises her/his job security (legitimate proof
required)), or attending a game (except for representing the university in a
tournament (a coach’s note required)), are not acceptable.
Students missing any
examination without permission will automatically receive a zero on that exam. Quizzes A number of half-hour long quizzes will be given during the
semester. These quizzes will be
announced in advance. There will
also be a number of unannounced 10-minute pop quizzes at the end of some
classes. Missing a quiz due to an
unexcused absence will result in a zero grade on that quiz.
A student will be excused from a quiz only when there is a valid
pre-approved reason or documented illness with a notification, such as an email
or a voice message, to the instructor prior to the quiz. Research Paper and Other Team Activities Students are expected to form a number of four-member teams.
There are three tasks to be completed by each team: a “case”
summary with a presentation, a research paper/ presentation on multinational
financial management issues, and a currency trading simulation.
Each team will be given a case to write a summary, distribute it to the
whole class, and make a 20-minute presentation in class.
Case presentation will begin shortly before the midterm exam.
There will be approximately one team presentation each week.
Each team is expected to distribute its summary to the whole class the
week before its presentation. After
each case presentation, a pop quiz may be given and it will be counted toward
case/paper/presentation grade. In
addition, over the course of the semester, each team will conduct a research on
multinational financial management issues and complete a short research paper,
about 12 to 20-page long plus tables/figures/references, in both hardcopy and
electronic file. The final two
classes will be reserved for teams to make a 15 to 20-minute presentation on
their findings. To provide
sufficient time for reading, each team should also distribute its paper to all
classmates the week before the presentation.
During presentations, students should also be prepared to ask at least
five meaningful questions, which will be part of their research paper grade as
well. A one or two-page write-up of research paper proposal is due on Thursday, March
9. The due date for paper
submission (with a copy of reference attached) and paper distribution (via
email) will be on Tuesday, May 2. Missing
due date without prior approval will result in zero point.
Each team is also expected to participate in a currency trading
simulation to gain more practical knowledge.
More details regarding cases, research papers, presentations, and
currency trading simulation will be discussed in class. Teamwork Teamwork often facilitates a more effective learning process through collaboration and also mirrors the practice in most workplaces. Students will be benefited from forming study groups for mutual assistance in their studies and completing assignments. Although, students are allowed and encouraged to work together, assignments should still be completed individually. Working together does not mean that one can copy answers from the other or share the same computer printouts/files. Any identical assignment submissions (or those with extremely high degree of resemblance) will lead to zero point and offenders are subject to academic penalty and/or disciplinary action under the University policy. Class Participation In
evaluating class participation, the instructor will look for comments that are
thoughtful and lead the discussion forward.
In addition, the instructor may ask students questions to ensure that students understand the critical issues of the
topic and involve in class activities. Attendance According to College Catalog (similar message can also be found in Student Handbook): “Regular class attendance is
obligatory. An instructor may recommend that a student be dropped from a course
for poor achievement due to excessive absence. A student who is dropped after
the deadline for dropping courses may be assigned a grade of E. Students who
have two unexcused absences during the first two class meetings of the semester
may be dropped from the course at the discretion of the instructor. The
instructor or the department offering the course will notify the Registrar of
this action. However, students should not assume that they have been dropped
from a class just because the first two classes were missed. It is ultimately
the responsibility of students to drop a course that they are not planning to
attend by the deadline published.” In addition, faculty MUST maintain records of attendance for Financial Aid purposes. Therefore, the instructor will keep an attendance record by circulating a roll sheet in class. Students should remember to have it signed every time. No late signing is allowed once a class is concluded. Absence without a valid reason and prior approval (except for illness) will result in one-point deduction from a student’s attendance grade until it reaches zero. Thereafter, two more unexcused absences, coupled with poor performance, will warrant a recommendation to the Registrar’s office for the student to be dropped from the course due to excessive absence. Missing a quarter of classes or more is considered excessive. The above attendance policy will be strictly enforced. Grading
Academic Integrity Students
are advised to strictly follow the “College Policy on Cheating/Plagiarism”,
which can be found at http://www.oswego.edu/administration/registrar/acad_policies.html
or the Student Handbook. Any violation will result in academic penalty
and/or disciplinary action under the Code of Student Rights, Responsibilities
and Conduct (refer to the Student Handbook, particularly sections 42A and 43A). Add/Drop, Withdraw, and Incomplete Policies Students
are responsible to be aware of the current add, drop and withdraw policies
stipulated in the university “Academic Policies”, which can be found on the
university website: http://www.oswego.edu/administration/registrar/acad_policies.html
or various university publications. Incomplete
grade “I” will be given only in situations beyond a student’s control,
such as serious illness, legal issue, and family emergency for an extended
period of time. Legitimate proof is
required. “I” will not be
granted because of a student’s poor performance.
(Final day to drop: Wednesday, February 15; Final day to withdraw: Friday, March 31) Classroom Behaviors During a class, students should refrain themselves from any disturbing behaviors interfering with the learning of their fellow classmates. In particular, cellular phones and beepers should be turned off. Except for participating in class discussions and asking the instructor questions, private conversations between students are prohibited. Unless directed, students are NOT allowed to access websites, check emails, watch videos, play games, and engage in activities on their laptop computers other than taking notes, accessing course materials, and others permitted by the instructor. Any violation of these kinds is deemed improper. Repeated offenders will be at least asked to leave the class. Disabilities Students
who have a disabling condition, which might interfere with their ability to
successfully complete this course, are encouraged to speak, confidentially, to
the instructor, or contact the Office of Disability Services (phone 312-3358). Course
Outline: Subject to Change Week
Topic
Chapter GLOBAL
FINANCIAL ENVIRONMENT 1
Financial Goals and Corporate Governance
1 2
The International Monetary System / the Balance of Payments
2, 3* FOREIGN EXCHANGE THEORY AND MARKETS
3
International parity Conditions
4 4
Foreign Exchange Rate Determination and FX Market
5*, 6 FOREIGN EXCHANGE EXPOSURE
5
Foreign Currency Derivatives/Transaction Exposure
7*, 8 6
Operating Exposure / Translation Exposure
9, 10 7
Midterm Examination: (Tuesday, March 7)
(Monday-Friday, March 13-17: Spring Recess: No Classes) FINANCING
THE GLOBAL FIRM
8
Global Cost and Availability of Capital
11 9
Sourcing Equity Globally
12 10
Interest Rate and Currency Swaps
14* FOREIGN
INVESTMENT DECISIONS
11
International
Portfolio Theory and Diversification
15
(Thursday, April 13: Good Friday & Spring Break Day:
No Classes) 12
Foreign Direct Investment Theory and Strategy
16* 13
Multinational Capital Budgeting
18 14
Multinational Tax Management
20*
15
Research Paper Presentations
16
Final Examination: 10:30 AM – 12:30PM (Tuesday, May 16)
* Due to time constraint, only fundamentals in these chapters will be discussed. |