International Finance (in English)

ISA Study Center with Universidad Internacional Menéndez Pelayo-Sevilla

Course Description

  • Course Name

    International Finance (in English)

  • Host University

    ISA Study Center with Universidad Internacional Menéndez Pelayo-Sevilla

  • Location

    Seville, Spain

  • Area of Study

    Finance, International Studies

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    As you may be aware, the scope and content of international finance have been fast evolving due to deregulation of financial markets, product innovations, and technological advancements. As capital markets of the world are becoming more integrated, a solid understanding of international finance has become essential for astute corporate decision making. Reflecting the growing importance of international finance as a discipline, we have seen a sharp increase in the demand for experts in the area in both the corporate and academic worlds.
    This course provides students with the tools and methods to study, analyze and understand international economic issues and problems. Considering that any subject is better learned if one first is well grounded in the basics.
    Consequently, we initially devote several chapters to the fundamental concepts of international finance. After these are learned, the remaining material flows easily from them. The course will bring the student back, as the more advanced topics are developed, to their relationship to the fundamentals. By doing this, we believe students will be left
    with a framework for analysis that will serve them well when they need to apply this material in their careers in the years ahead.
    The course never loses sight that it is teaching students how to make managerial decisions. Therefore the course is founded in the belief that the fundamental job of the financial manager is to maximize shareholder wealth.
    The course will be taught in a seminar style, with a combination of lecture and discussion. We will also have movies and/or documentaries to supplement the readings. Students are expected to actively follow international business affairs by reading international prestigious media like: BBC (www.bbc.co.uk). Der Spìegel (www.spiegel.de) (English edition).
    Learning outcomes:
    At the end of this course students should be able to:
    1. Describe the dimensions of performance and risk relevant to financial firms.
    2. Describe the general structure of various financial markets.
    3. Describe contemporary managerial risk management oversight processes.
    4. Explain how the financial services component industries (insurance, banking, securities and real estate).
    5. Design hedging strategies to manage market risks (e.g., currency, commodity, economic and political
    6. Evaluate the economic environment and the impact of governmental economic policies on consumers and financial institutions.
    7. Describe the impact that financial innovation, advances in technology, and changes in regulations has had on the structure of the financial firms/industry
    8. Describe the importance of balance of trade and balance of payments to the development of macroeconomic policy
    9. Discuss the role that international institutions play in the global arena.
    11. Describe the various currency arrangements a country may adopt
    12. Identify opportunities for arbitrage and discuss methods to exploit these opportunities.
    14. Evaluate cross-border investment opportunities, and describe a multinational firm?s
    decision-making process for long-term capital budgeting, short-term cash-flow management, and the management of international taxation.
    Contents:
    UNIT 1: GENERAL OVERVIEW OF MONEY AND ITS PLACE IN OUR LIVES
    ? Introducing money and the financial system
    ? Key components of the financial system
    o Financial assets
    o Financial intermediaries
    o The financial regulators
    ? The financial crisis of 2007-2009
    UNIT 2: MONEY AND THE PAYMENTS SYSTEMS
    ? Do we need money?
    ? Types of money
    ? Key functions of money
    ? The role of banks
    ? Creation of money
    ? Money transactions: from gold pellets to E cash
    UNIT 3: MONEY SUPPLY
    ? Monetary aggregates
    ? Money supply control
    ? Instruments of monetary policy
    ? The quantity theory of money
    UNIT 4: INTERESTS RATES AND RATES OF RETURN
    ? The interest rate, present value and future value
    ? Debt instruments
    ? Bond prices and yield to maturity
    ? Interest rates and rate of returns on debt instrument investments
    ? Nominal vs real interest rates
    UNIT 5: THE STOCK MARKET
    ? Stocks and the stock market
    ? Types of stock
    ? Stock trading
    ? Stock price determination
    o Short term pricing
    o Long term pricing, the Gordon growth model
    o Rational expectations and efficient markets
    UNIT 6: DERIVATIVES AND THE DERIVATIES MARKETS
    ? Derivatives, hedging and speculation
    ? Forward contracts
    ? Futures contracts
    ? Reading financial futures listing
    ? Options
    ? Swaps
    UNIT 7: THE MARKET FOR FOREIGN EXCHANGE
    ? Forex main players
    ? Exchange rates and trade
    ? Currency trading
    ? Forex market operations
    o Reading forex quotations
    o Forex cross rates
    o Triangular arbitrage
    UNIT 8: THE EUROPEAN MONETARY SYSTEM
    ? The making of a currency
    ? Convergence criteria
    ? European union monetary policy and stability pact
    UNIT 9: THE SHADOW BANKING SYSTEM
    ? Investment banks
    ? Mutual funds
    ? Hedge Funds
    o Hedge funds strategy
    ? Pension funds
    ? Finance companies
    o Insurance companies
    o Consumer finance
    UNIT 10: THE INTERNATIONAL MONETARY SYSTEM
    ? Bimetallism
    ? The classical gold standard
    ? Interwar period
    ? The Bretton Woods system
    ? Floating system
    UNIT 11: FINANCIAL CRISIS
    ? Causes
    ? Effects on real economy
    ? Solutions
    Required material: Money, Banking and the Financial System, plus MyEconLab with Pearson eText, International Edition, 2/E.
    Available at ISA Study Center: Every student will purchase a personal code for access to the online platform from where all the course management ( eText, assignments, reviews, activities, assessments ) will take place.
    By the end of the add and drop period professor will tell students where the online access code may be purchased.
    As an online platform learning system students will need to use a piece of IT equipment able to connect to the platform through wireless access
    Complementary bibliography:
    - Cheol S.Eun & Bruce G. Resncik (2004), International Financial Management 3rd Edition. Mc Graw Hill.
    - Pilbeam, K. (2006), International Finance. 3rd Edition.
    - BBC web site www.bbc.co.uk
    - Spiegel web site www.spiegel.de (English edition)
    - Financial Times www.ft.com
    Course Evaluation:
    20% Tasks and attendance
    40% Final exam
    30% Projects
    10% Subjective evaluation
    Final letter grades will be assigned using the following scale, expressed in terms of the percentage of total possible points earned:
    10 = Matrícula de honor
    9 ? 9,9 = Sobresaliente
    7 ? 8,9 = Notable
    5 ? 6,9 = Aprobado
    0 ? 4,9 = Suspenso
    Attending the course but not taking the exams = No presentado
    Missing class more than permitted = No asistencia
    Instructional Format:
    Course work is comprised of in-class lectures and discussions, group exercises, student exposés, outside readings, independent group and individual onsite study, and a research project.
    You will also actively participate in the learning process of this course, sharing your research and readings with other students through individual and group presentations that will make up much of each session. Your class discussions will find inspiration not only from class readings but from current developments in the business world and which are related to international political and financial events. You are encouraged to bring to class any topic that catches your attention or sparks your curiosity throughout the term and propose it for to the instructor for discussion. Your initiative here will be factored into your class participation.
    Taks:
    In order to facilitate participation in classroom instruction, students will be required to carefully read assigned selections and complete given activities.
    Final exam:
    The final exam is comprised of questions and exercises that test your abilities in three important areas of competency: the amount of information you master; the accuracy of the information you present; and the significance you ascribe to the facts and ideas you have integrated across your study in this course. The tests shall be completed in class within the two-hour time period. Exam dates are given to students at the beginning of the course and are to be respected.
    Projects:
    At the beginning of the course, the instructor will organize you into groups and assign specific oral presentations on topics or cases directly related to course work and learning objectives.
    The project will consist of a research followed by a presentation done in class. Your 35-40 minutes presentation must be made in PowerPoint format
    It is therefore essential that, as a team, you develop group-work skills that promise the highest performance norms. And while working in groups should increase overall performance outcomes through the synergy you all create.
    You have to send a copy to instructor´s email. Bear in mind ISA Study Center - UIMP premises and instructor use pc environment. It is your responsibility to be sure that instructor can open any attachment. Your presentations are expected to match business-world standards both in form and in content. The evaluation of the group presentation will be based upon the following:
    Delivery 10% (engaging tone of voice, audience eye contact, eloquence & ease of delivery)
    Structure 10% (appropriate organization of the parts)
    Timeliness 10% (not too short, not too long 45 max limit equally distributed among team members)
    Form 20% (quality of PowerPoint file and handout)
    Content 50% (depth of research, quality and pertinence of sources consulted, knowledge of the topic, clarity of analysis, capacity to synthesize the elements examined into a coherent whole)
    Always use the appropriate academic reference style when citing sources. Remember to track your sources during the preparation of your work in a conscientious manner so that you may cite them appropriately in your final report and avoid the pitfalls of plagiarism.
    Class Participation:
    When determining your class participation grades, traditional criteria such as material preparation, completed reading before class, and collaborative group work are all evaluated. But it is the active, meaningful and informed verbal and written contribution that you make that is most important to your overall participation grade. Attendance and punctuality are expected and do not count positively towards the grade. Attendance and punctuality are expected, laxity in these areas will certainly have a negative effect on your grade.
    As participation in class debates and activities is an essential part of the learning experience, you will be expected to read the assigned chapter or case prior to class lectures and discussion. In evaluating your class participation, the instructor will be taking into account the maturity and insightfulness of your comments and questions, rather than their frequency
    Guidelines to Assess Class Participation
    You make significant and original contributions that spark discussion, offering both critical and analytical comments clearly based on readings and research and displaying a working knowledge of theoretical issues.
    9.00-10.00
    You make major contributions that spark discussion based on readings and research, demonstrating insight as well as knowledge of theoretical issues.
    8.00-8.99
    You make voluntary and useful contributions, which are usually based upon some reflection and familiarity with required readings.
    7.00-7.99
    You make voluntary but infrequent comments that generally reiterate the basic points of the required readings.
    6.00-6.99
    You make isolated contributions to class discussion, display disruptive behavior during class, and/or take a passive approach to overall class interaction.
    0-5.99
    Class Attendance: class attendance is obligatory, it is checked every class day and it is reflected in the course attendance sheet that is sent to the University.
    An 85% of attendance is required for the successful completion of the course. Not missing any class will be considered positively.
    If a student exceeds this limit, the grade in the transcript for this subject could appear as ?not attended course?.
    Justified absences: Medical Certificates: certificates will be considered only if issued by a physician (not notes from the family explaining the student absence). The certificates must include the exact dates for which a student should be excused for having missed classes.
    English expression
    The students should express themselves -both orally and in writing- in good formal English. Particularly in the written partials and quizes, as well as the presentations, good academic writing is essential. Bad, sloppy academic writing (misspellings, deficient syntax, etc.) will be penalized.
    Auditors: Courses cannot be taken as auditors, thus attendance is possible only for students enrolled in a specific class.
    Tardiness: It is expected that students arrive to class on time and that they return directly to class after any given break. Arriving 10 minutes late (or more) and/or early class departures are considered unexcused absences and will be taken into account as half absence.
    Class Protocol: Students are required to be involved in class activities. They are expected to show their preparation by participating in discussions, by asking relevant questions, being critical and analytical with the contents presented in class as well as by sharing their ideas and opinions. In class the student is required to maintain a polite demeanor always and under every circumstance. Students are asked not to eat in class and to put their cell phones on silence. With the exception being for class presentations, laptops are not to be used in class.
    Special Accommodations: Students with special needs who require reasonable modifications, special assistance or accommodations in this course (either for properly following-up classes, to take exams, etc.) should direct their request to Academic Coordination during the first week of the course.
    Tentative weekly plan: During the first days of the course a tentative weekly plan will be issued. The idea is to provide the student with a guidance of the topic to be covered on a weekly basis. It is necessary to bear in mind that class dynamics may alter the proposed planning.

Course Disclaimer

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Some courses may require additional fees.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations