Dr. P.V. Viswanath



Economics/Finance on the Web
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  Courses / FIN 649/  

FIN 649: International Corporate Finance
Course Outline and TimeTable


Summer 2006


Class Meeting session and Days


Projects and other Deadlines

Session 1
June 1

Chapter 1: The World of International Finance (Slides)

Read Chapter 1 before class.
Read article "Why trade is good for you," from Media Articles page.

Session 2
June 6

Chapters 2, 3: The Markets for Foreign Exchange (Slides)
Chapter 4: Options and Futures Markets (Slides)

Read Chapters 2, 3 and 4.
Read article "Outsourcing 101" from Media Articles page.
Read Chapter 1 of Millman Read article, "Foreign investment in China's banks" from The Economist of September 1, 2005 (see Media Articles page)

Session 3
June 8

Test 1 (based on Chapters 1-4)
Chapter 5, 6: The Determination of Exchange Rates (Slides)
Determination of Exchange Rates -- Foreign Exchange Market Intervention

Read Chapters 5 and 6; we will not go over Chapter 5 in any detail. However, you will find Chapter 5 very useful preparation to understand the material.
Read article from WSJ, June 7 on the dollar (you can find it on Blackboard under Documents).

Session 4
June 13

Chapters 7, 8: The Fundamental International Parity Conditions (Slides)
Additional Slides on PPP/IRP


Session 5
June 15

Test 2 (based on Chapters 5-8)


Session 6
June 20

Chapter 9: Foreign Exchange Exposure and Risk (Slides)
Chapter 10: Accounting Exposure versus Real Exposure (Slides)
Chapter 11: Operating Exposure (Slides)
Additional slides: Measuring and Managing Translation and Transaction Exposure

Read Chapter 10, 11
Read "Strong Euro Bedevils EU Firms: Despite Currency Drop, Companies Struggle to Stay Competitive"
Read "Why Dollar Can't Close Gap: Trade Within Multinationals Saps Benefit of Weaker Currency." (see Media Articles page)

Session 7
June 22

Chapter 12: Hedging Exposure (Slides)
Additional Slides: Measuring and Managing Economic Exposure
Read Chapter 12
Read "Weaker Dollar Causes Toyota's Profit to Slip"

Session 8
June 27

GM: Competitive Exposure Case

Case due at the beginning of class

Session 9
June 29

Chapter 16: Capital Budgeting for Foreign Investments (Slides)
Read Chapter 16

Session 10
July 6

Capital Budgeting Case
Case due at the beginning of class

Session 11
July 11

Test 3 (Chapters 9-11 and 16)

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