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Students are expected to preview the readings under each module and post their understandings, thoughts and/or applications on minimum three concepts per module
Module One – Introduction to the International Financial Environment & the Determination of Exchange Rates
Readings: Chapter 1-3
Identify and contrast the major markets that facilitate international business. Describe relationships between exchange rates and economic variables, and explain the forces that influence these relationships. Our focus will be on European Monetary System and the Federal Reserve System.
Case 1: The EURO (understanding about its history, uniqueness, role, strength, challenge and future) https://www.economist.com/leaders/2019/01/03/the-euro-still-needs-fixing
Module Two –International Money Market, Bond Market and Equity Market:
Reading: Chapter 11-13; International financial markets, Madura, 2014
http://mays.tamu.edu/center-for-international-business-studies/wp-content/uploads/sites/14/2015/05/Chapter-03.pdf; Covid-19 impacts https://www2.deloitte.com/us/en/insights/economy/covid-19/banking-and-capital-markets-impact-covid-19.html
Building on the understandings of time value of market, pricing of bonds and stocks, an overview of global capital market will be discussed to help students to understand how capital could be moved efficiently across national borders to meet demand in other parts of the world.
Module Three – Foreign Exchange Transactions and Risk Management:
Reading: Chapter 5-7; https://www.theseus.fi/bitstream/handle/10024/104281/Vitalie+Antoci+-+Transaction+Exposure.pdf?sequence=1
Introduce three primary types of derivative contracts: Forwards vs Futures vs Options to equip students with the understandings about how these contracts work and thus used as hedging tools. Then we will dialogue on the foreign exchange risk management for multinational corporations and how to use money market and derivative market to manage the risk.
Case 2: How Did Nick Leeson Contribute To The Fall of Barings Bank?
Case 3: Propose and present on the detailed strategies for any MNC of choice facing the following currency risk: https://www.wsj.com/articles/companies-warn-currency-swings-will-weigh-on-earnings-1533115800
Module Four- International Taxation and Capital Budgeting
Readings: Chapter 16-19, and 21
Based on the solid understanding of international tax planning, discuss financing decisions with international bonds, equity and hybrids; cost of capital. Synthesize and evaluate options for the management of long-term assets and liabilities, including motives for direct foreign investment, multinational capital budgeting, country risk, analysis, and capital structure decisions.
Case 4: Please provide a detailed discussion on why BMW chose Hungary over Slovakia to build its new plant in 2018
Case 5: Research a cross-listed company and discuss the rationales, pros and cons. https://www.financierworldwide.com/innovative-approaches-to-cross-listings#.XOchNNh7nIU