COURSE UNIT TITLE

: INTERNATIONAL FINANCIAL MANAGEMENT

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
IBS 4321 INTERNATIONAL FINANCIAL MANAGEMENT ELECTIVE 3 0 0 5

Offered By

International Business and Trade

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

ASSOCIATE PROFESSOR BERNA KIRKULAK ULUDAĞ

Offered to

International Business and Trade
BUSINESS ADMINISTRATION

Course Objective

The aim of this course is to provide the students with information about history of international monetary system and environment of international financial management to analyze foreign exchange markets, parity conditions and balance of payments.

Learning Outcomes of the Course Unit

1   Describe the history of international monetary system pointing out the Gold Standard, Bretton-Woods and hybrid systems, and European Monetary System. (Level 1).
2   Explain the international financial environment pointing out the origins and effects of the financial crises. (Level 2).
3   Identify the basic factors affecting exchange rates, pointing out different exchange rate systems such as free float, managed float and fixed rate systems. (Level 2).
4   Describe the organization of exchange rate markets in order to distinguish between the spot and forward market and different methods of foreign exchange quotations. (Level 2).
5   Assess currency and interest rate arbitrage opportunities in order to calculate the profits associated with these arbitrage opportunities. (Level 3).
6   Identify the links between domestic economic behavior and the international flows of goods and capital in order to describe how these links are reflected in the various balance of payments account. (Level 2).
7   Explain Purchasing Power Parity, Fisher Effect, International Fisher Effect, Interest Rate Parity, and Forward Rates pointing out the theoretical relationships among spot exchange rates, forward exchange rates, inflation rates, and interest rates. (Level 2).
8   Explain how currency futures and options contracts and swaps can be used in order to manage currency risk. (Level 2).

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Comparative Corporate Governance and Financial Goals
2 The International Monetary System
3 The Balance of Payments
4 The Balance of Payments
5 Discussion: Financial Crises
6 The Foreign Exchange Market
7 The Foreign Exchange Market
8 Foreign Exchange Rate Determination and Forecasting
9 International Parity Conditions
10 International Parity Conditions
11 Foreign Currency Futures
12 Foreign Currency Options

Recomended or Required Reading

Eiteman, D. K., Stonehill, A., Moffett, M. (2009). Multinational Business Finance, 12th Edition, Addison Wesley

Planned Learning Activities and Teaching Methods

Lectures
Problem Solving
Presentations

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MT Midterm
2 ASS Assignment
3 FN Final
4 FCG FINAL COURSE GRADE MT * 0.30 + ASS * 0.30 + FN * 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MT * 0.30 + ASS * 0.30 + RST * 0.40

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will define the history of international monetary system
2. The learner will explain the international financial environment (e.g. the origins and effects of the financial crises)
3. The learner will identify different exchange rate systems and the basic factors affecting exchange rates.
4. The learner will describe the organization of exchange rate markets
5. The learner will assess currency and interest rate arbitrage opportunities
6. The learner will identify the links between domestic economic behavior and the international flows of goods and capital
7. The learner will explain Purchasing Power Parity, Fisher Effect, International Fisher Effect, Interest Rate Parity, and Forward Rates
8. The learner will explain how the financial derivative instruments can be used to hedge currency risks.

Language of Instruction

English

Course Policies and Rules

1.Attending at least 70 percent of lectures is mandatory.
2.Plagiarism of any type will result in disciplinary action.

Contact Details for the Lecturer(s)

E-mail: tulay.yucel@deu.edu.tr
Tel: 232 3018249
Room No: 125

Office Hours

Monday 13.30-15.00
Tuesday 15.00-16.00

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 12 3 36
Tutorials 0 0 0
Preparation for midterm exam 1 15 15
Preparation for final exam 1 25 25
Preparation for quiz etc. 1 5 5
Preparing presentations 1 2 2
Preparing assignments 7 4 28
Midterm 1 1,5 2
Final 1 1,5 2
Quiz etc. 1 1,5 2
TOTAL WORKLOAD (hours) 117

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10PO.11PO.12PO.13PO.14PO.15
LO.1232
LO.224
LO.33332
LO.43332
LO.533
LO.6322
LO.733
LO.833

CONTACT INFORMATION
Dokuz Eylül Üniversitesi Cumhuriyet Bulvarı No: 144 35210 Alsancak / İZMİR
Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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