Finance 401

International Financial Management




Fall 2005
Office Hours and Location

MWF 8:00am - 9:00am

MWF 10:00am - 11:00am
TR 8:00am - 9:00am
College of Business # 113

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SUBJECT: Finance 4013-010, International Financial Management

INSTRUCTOR: Sankar Sundarrajan (Sundar)

TIME & PLACE: Tuesday and Thursday 9.25 – 10.40 / Room 186 Business Bldg.

OFFICE: Bus. 113 (Office Hours- MW 8 -9: TH 8-9.25

EMAIL & TELEPHONE: / 254 968 9916

TEXTS: Global Corporate Finance 5th edition by Kim, Kim & Kim



The increased importance of international business is documented by its high degree of media attention. Many business periodicals now devote special sections to international products, securities, and currency markets. The international environment affects not only large multinational corporations, but even small businesses. As international markets continue to become more integrated, foreign markets will have more influence on corporate performance, and international financial management will become even more critical to a company’s success.

In this class we will discuss Trade policies , international Currency markets, international Capital markets, Foreign exchange risk management, international capital management , taxation and accounting issues for multi national corporation among other issues.



Lecture/Discussion. We will try to debate and devote time to current events in every class. I WOULD ALSO REQUIRE YOU TO DO CASE ANALYSIS AND MAKE CASE PRESENTATIONS FROM TIME TO TIME.



Regular attendance is an important part of being successful in this course. Frequent or sustained absences are neither desirable nor condoned. Absence will cost you points in class participation.


Be an active listener in class. You will be asked questions often. You will also need to make occasional short oral reports and case presentations.



Read chapter assignments before class. Periodically, I will give articles on international finance. Write two paragraphs, approximately ½ page, about the article. Attach a copy of the article to the page. Provide proper citation. Review questions and problems at the end of the text. All homework assignments need to be typed, stapled and presented in the proper format. Work not presented in this formal style will have an automatic reduction of 50% of the grades assigned for that homework. Home work is due at 10.50am on the due date in my hands. If you plan to slide home work under the door of my office make sure that it is done before I leave for the class. No late submission will be accepted for any reason.



Problems, essay, multiple-choice. Intended to test your memory, understanding, logic, and synthesization of material.



3 Mid-Semester Exams 300
H W/ Paper/ Class part./quizzes/presentations 150
Final Exam 50
Total Points 500


At the end of this course, you should have complete knowledge of issues involved in:

1 Exchange rate theories.

2. Exchange rates and currency valuations.

3. Current account, capital account and balance of trade issues.

4. Foreign exchange market mechanism.

5. Exchange rate and interest rate determinators.

6. Hedging and speculation in currency markets.

7. Accounting and reporting for multinational corporations.

8. Investment and financing decisions for multinational corporations.

9. Transfer pricing and taxations


If you have special needs due to learning disability or other disability, please contact Dr. Phyllis Guthrie, ADA compliance officer, Room 15, Students Center, Phone 968-9480.


Last Update: Wednesday, August 24, 2005