International Financial Management

Course Code:

AFN 312

Course Period:

Autumn

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

6

Prerequisite Courses:

Principles of Finance

Course Language:

İngilizce

Course Objectives:

To develop an understanding of how international financial markets work and the macroeconomic parity conditions that determine market prices, how fluctuations in exchange rates affect the cash flows and value of a company, and recognizing the financial instruments that can be used to manage these risks

Course Content:

International monetary system, balance of payments, foreign exchange markets, international parity conditions, foreign exchange derivatives, interest rate risk and swaps, foreign exchange rate forecasting and determination, management of foreign currency exposure

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion; 4: Simulation; 5: Case Study

Course Evaluation Methods:

A: Testing, B: Presentation, C: Homework, D:Project, E:Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
1. To command the international finance terminology	1, 4, 6	1,2,3	A,C
2. To understand how the international financial markets work	1, 4, 5, 6, 7	1,2,3	A,C
3. To grasp how foreign exchange rates are determined and forecasted	1, 5, 7	1,2,3	A,C
4. To analyze the interest rate risk of a company due to foreign borrowing and to be able to manage it with derivative instruments	1, 2, 5, 6, 7, 8, 10	1,2,3	A,C
5. To analyze the foreign currency risk exposure of a company and to be able to manage it with derivative instruments	1, 2, 5, 6, 7, 8, 10	1,2,3	A,C

Course Flow

Week	Topics			Study Materials
1		Introduction – International Financial Management	Textbook Ch. 1
2		The International Monetary System	Textbook Ch. 2
3		The Balance of Payments	Textbook Ch. 3, Online resources
4		The Foreign Exchange Market	Textbook Ch. 5
5		The Foreign Exchange Market	Textbook Ch. 5
6		International Parity Conditions	Textbook Ch. 6
7		International Parity Conditions	Textbook Ch. 6
8		Midterm 1
9		Foreign Currency Derivatives: Futures and Options	Textbook Ch. 7
10		Interest Rate Risk and Swaps	Textbook Ch. 8
11		Foreign Exchange Rate Determination and Forecasting	Textbook Ch. 9
12		Transaction Exposure	Textbook Ch. 10
13		Operating Exposure	Textbook Ch. 12
14		Translation Exposure	Textbook Ch. 11
15		Final Exam

Recommended Sources

Textbook	Eitemann, Stonehill, and Moffett (2016). Multinational Business Finance, Global Edition, 14th Edition, Pearson.
Additional Resources	Course Moodle page, online resources, articles, lecture notes.

Material Sharing

Documents	PowerPoint presentations used in class, Additional reading material
Assignments	Homework assignments
Exams	Midterm Exam and Final Exam

Assessment

IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	70
Assignments	6	30
Total		100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		40
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		60
Total		100

COURSE CATEGORY

Expertise/Field Courses

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM
	Program Learning Outcomes	Contribution
	Program Learning Outcomes	1	2	3	4	5
	1. To understand the core principles of finance and to be able to apply them both nationally and internationally.					X
	2. To formulate solutions to finance problems by effectively using contemporary information technologies and up-to-date financial instruments.
	3. To judge the best possible outcome to problems that require ethical and social responsibility-based thinking by identifying stakeholders and weighing alternative solutions.	X
	4. To develop the necessary background to be able to work in multicultural and multilingual environments.					X
	5. To analyze the developments in financial markets by interpreting and distinguishing among the factors affecting them.					X
	6. To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.				X
	7. To understand the structure of the global economic system and to be able to analyze how new developments will affect this structure.				X
	8. To be able to use critical thinking ability in decision making process.				X
	9. To develop and demonstrate the leadership, teamwork and communication skills that may be transferred to the lifelong learning process.
	10. To interpret environmental and sustainability issues by implementing quality management processes.				X

ECTS

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 15x Total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	4	60
Mid-terms	1	10	10
Homework	6	2	12
Final examination	1	10	10
Total Work Load			147
Total Work Load / 25 (h)			5,88
ECTS Credit of the Course			6

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