Essay About Currency Systems And International Financial Management3Lecturediscussionq

Scheme of Work. International Finance
SCHEME OF WORK BWFF3043 INTERNATIONAL FINANCE SEMESTER A131 (2013/2014) LECTURER’S NAME: Angappan Regupathi                WEEK TOPICS & SUB-TOPICSOBJECTIVESHOURSM.O.DTANOTES11.0   Introduction GlobalisationTheories of international trade and industry locationMNCs, foreign direct investment strategy, and globalisationSpecial risks faced by MNCsCorporate governance of MNCsInternational financial management issuesTo explain  globalisation To explain the relevant theories of international trade and industrial locationTo explain MNCs’ foreign direct investment strategy and their impact on globalisationTo describe the risks faced by MNCsTo explain the importance of MNC corporate governance To explain the issues in international financial management3LectureDiscussionQ/APowerpointInternetOHPLCDChapter 1Chapter 21(pp. 527-528)22.0   International Financial MarketsForeign exchange marketsTo describe features of the foreign exchange market3LectureDiscussionQ/APowerpointInternetOHPLCDChapter 4 3International money marketsInternational debt marketsGlobal equity markets3.0   Currency Systems and ValuationA brief history of monetary regimesContemporary currency systemsCurrency valuation basicsTo describe features of the international money marketsTo describe features of the international debt marketsTo describe the features of the global equity marketsTo describe briefly the history of monetary regimesTo describe the current currency regimesTo explain the determination of a currency’s value1.51.5LectureDiscussionQ/APowerpointInternetOHPLCDChapter 7(pp. 206-213)Chapter 8(pp. 236-239)Chapter 9(pp. 264-272)Chapter 2Project details to be given4Factors affecting currency valuesHow governments intervene in the currency marketsCurrency crises in emerging markets4.0   Currency Parity ConditionsBasic arbitrage in currency marketsTo explain the influence of factors on currency valueTo describe the ways a government intervenes in the currency marketTo explain the causes, impacts, and responses to the currency crisesTo solve currency arbitrage problems1.51.5LectureDiscussionQ/AExercisesPowerpointInternetOHPLCDChapter 55Money markets and currency marketsTo solve covered interest arbitrage problems and interest rate parity3LectureDiscussionQ/APowerpointOHPLCD6Product markets and currency marketsInternational Fisher effect: real rates of return and inflation5.0   Currency and Eurocurrency DerivativesWhat are derivatives?Currency forwardsTo explain purchasing power parity and its implication on exchange ratesTo explain the international Fisher effect and its implication on exchange ratesTo describe the basic features of derivativesTo explain the features of currency forwards1.51.5LectureDiscussionQ/APowerpointOHPLCDChapter 67Currency futuresCurrency optionsTo explain the features of currency futuresTo compute profit from the currency option speculation & explain factors influence on option pricing3LectureDiscussionQ/APowerpointOHPLCD86.0   Currency Risk Exposure MeasurementVariation in foreign exchangeTransaction exposureEconomic and operating exposureTo measure the variation in exchange ratesTo explain transaction exposure measurementTo explain estimating economic or operating exposure3LectureDiscussionQ/APowerpointOHPLCDChapter 12Chapter 13Chapter 14(pp. 389-390, 395, 399-402)9Translation exposureFirm type and nature of currency exposure7.0   Currency Exposure ManagementWhy manage currency risk?Actual hedging behaviour by firmsTo explain translation exposureTo describe the empirical evidence on currency exposureTo explain the arguments for managing currency riskTo describe actual corporate hedging1.51.5LectureDiscussionQ/AExercisesPowerpointOHPLCDMID-SEMESTER TEST:Tuesday, 12/11/2013, 5:00pm–6:00pm10Hedging techniquesOperating decisions to mitigate transaction exposureOperating decisions to mitigate operating exposureTo solve hedging problemsTo explain operating decisions to reduce transaction exposureTo explain operating decisions to reduce operating exposure3LectureDiscussionQ/AExercisesPowerpointOHPLCD118.0   Capital BudgetingThe MNC capital budgeting processCompetitive advantage offered by international projectsTypes of overseas projectsOverview of international capital budgetingNet present value of an international projectTo describe MNC’s capital budgeting processTo explain the benefits from international projectsTo describe the types of overseas projectsTo describe the key features of international capital budgetingTo compute the NPV of an international project3LectureDiscussionQ/APowerpointOHPLCDChapter 1712Currency riskCountry risk9.0   Long-Term FinancingFinancing MNCs’ activitiesMNC debt financingMNC equity financingCost of capital and optimal financingTo describe  integrating currency risk in the analysisTo describe incorporating country risk in the analysisTo explain financing advantages and constraints of MNCsTo describe the debt financing available for MNCsTo describe the equity financing available for MNCsTo estimate MNCs’ optimal financing1.51.5LectureDiscussionQ/AExercisesPowerpoint1/12/2013DEADLINE for submission of project reportChapter 1613Strategic issues in financing MNCsThe use of derivatives in financing activitiesHow foreign MNCs use US equity markets10.0  Optimising and Financing Working CapitalOverview of working capital issuesCash managementReceivablesBank financingTo describe the strategic issues in MNC financingTo explain use of derivatives in financingTo explain how foreign MNCs use US equity marketsTo describe the broad issues in MNC working capital managementTo describe the issues in MNC cash managementTo describe the issues in MNC receivables managementTo describe the types of bank financing available for MNCs1.51.5LectureDiscussionQ/AExercisesPowerpointOHPLCDChapter 1814Market financingFinancing strategies to minimise cost11.0  International TradeImport and export: shipment and paymentImport and export financingTo describe the types of market financing available for MNCsTo explain the financing strategies to minimise costTo describe issues and strategies in shipment and paymentTo describe the financing strategies of export and import1.51.5LectureDiscussionQ/AExercisesPowerpointOHPLCDChapter 19(pp. 493-496)