Master of Business Administration

FIN‐604 : Finance for International Business

Course Description


This course covers two key areas for International Business: Corporate Finance and Accounting for
Decision Making.
1) Corporate Finance: The scope and the content of international business have been evolving very fast
the last twenty years: deregulation of markets, product innovations, technological changes. Capital
markets become more and more integrated and understanding of international business is nowadays
necessary to any student of international matters or to any manager in multinational firms or
institutions.
A key factor in international business is the need to operate in a multi‐currency environment. The
course looks at the way in which the foreign exchange markets have developed, and how they operate.
The determination of spot and forward rates is explained, and students are taught to calculate interestparity
forward prices and to look for arbitrage opportunities. The different concepts of foreign exchange
exposure are discussed, which then leads to a detailed study of hedging operations, using both
traditional methods and the derivative instruments introduced in “Financial Markets and Institutions”.
2) Accounting for Decision Making: In the second part of the course, a set of readings from the
textbook, assigned problems, and case discussion questions will be covered, which related to
accounting. The assigned problems illustrate the managerial accounting principles being covered each
week; the cases illustrate how these principles are used when addressing a management problem.

 


Course Objectives


The course will allow students to understand what is called international finance. It will also allow
students to be able to take their own decisions if they need them, when they will work in finance
departments of international companies. It also includes the presentation of statistics that will allow
students to understand recent developments of the world finance.
The course further aims to transmit a comprehensive, graduate level exploration of managerial
accounting. Managers need to understand the ways in which accounting information can be used to
guide decision‐making. Attention is given to operating leverage decisions, and their impact upon
“breakeven” activity levels. This in turn leads to decisions about pricing and production volumes, about
“make‐or‐buy” decisions and about outsourcing. A final module considers the role of accounting data in
risk management and in the formulation of corporate strategy.

 


Learning Goals


At the end of this course, students will be able to:

  • Explain with the aid of statistics and/or calculations how recent developments in the world financial
    system affect individual industries, businesses and markets.
  • Understand the International Monetary System, spot market and the forward market.
  • Address the management of transaction exposure, the international bond market and equity
    Markets, as well as currency swaps.
  • Provide effective cost management tools for projects
  • Plan, control and manage cost issues
  • Use budgeting techniques and principles
  • Implement methods of accountant information evaluation
  • Implement tools of decision making

 

 

Bibliography


Textbooks

  • Eun C, Resnick B, International Financial Management, McGraw‐Hill, 6th edition, 2012. ISBN‐13
    9780078034657
  • Managerial Accounting, 5th ed., Karen W. Braun, Wendy M. Tietz, Pearson, 2018

 

Additional Recommended Readings


Grading System

Grade Percentage Quality Credit Points
A 93 ‐ 100 Outstanding 4
A- 90 ‐ 92   3.75
B+ 87 ‐ 89   3.5
B 83 ‐ 86 Good 3
B- 80 ‐ 82   2.75
C+ 77 ‐ 79 Satisfactory 2.5
C 70 ‐ 76   2
F 0 ‐ 69 Failure 0

 

Course Outline

Session 1  
Description The International Monetary System and Foreign Exchange Markets. This
Module examines the evolution of the international monetary system and the
changes that took place since its foundation (1945). Further, it explains the
function and the structure of foreign exchange market.
To read Chapters 2, 3, 5
To prepare  Discussion Questions ‐ DQ1
 Writing assignment # 1
 Test
Session 2  
Description  International Banking and Money Market. Module differentiates between
international bank and domestic bank operations and examines the
institutional differences of various types of international banking offices.
International banks and their clients constitute the Eurocurrency market and
form the core of the international money market..
To read  Chapter 11
To prepare

- Discussion Questions – DQ2

- Writing Assignment # 2
‐ Test

Session 3  
Description  International Bond Market. Module distinguishes between foreign bonds and
Eurobonds, which together make up the international bond market. The
advantages of sourcing funds from the international bond market as opposed
to raising funds domestically are discussed. A discussion of the major types of
international bonds is included in the chapter.
To read  Chapter 12
To prepare   Discussion Questions – DQ3
 Writing Assignment # 3
 Test
Session 4  
Description  International Equity Markets. This Module, logically focused on the other
international equity included in the balance sheet, stocks.
To read  Chapters 13
To prepare -Discussion Questions – DQ4
-Writing Assignment # 4
-Test
Session 5  
Description  Mid‐Term Exam
To read none
To prepare Exam
Session 6  
Description Introduction to Management Accounting. Building Blocks of Managerial
Accounting
To read Read PowerPoint presentation
To prepare Questions to professor
Session 7  
Description Job Costing, Activity‐Based Costing, Lean Operations, and Costs of Quality
To read  Read chapters 1 and 2 of textbook
To prepare  Questions to professor
Session 8  
Description  Process Costing, Cost Behavior
To read  Read PowerPoint presentation
To prepare  Questions to professor
Session 9  
Description Cost‐Volume‐Profit Analysis. Relevant Costs for Short‐Term Decisions
To read  Read PowerPoint presentation
To prepare  Questions to professor
Session 10  
Description  The Master Budget. Performance Evaluation
To read  Read PowerPoint presentation
To prepare  Questions to professor
Session 11  
Description  Standard Costs and Variances. Capital Investment Decisions and the Time
Value of Money
To read  Read PowerPoint presentation
To prepare  Questions to professor
Session 12  
Description  Statement of Cash Flows, Financial Statement Analysis
To read  Read PowerPoint presentation
To prepare  Questions to professor
Session 13  
Description  Final Exam
To read  none
To prepare Exam

Assessment


Discussion Questions / Participation
Percent of the final grade: 20%
Written Assignments
Percent of the final grade: 20%
Midterm Exam
Percent of the final grade: 30%
Final Exam
Percent of the final grade: 30%

 


Academic integrity


Students are required to read UBIS Rules and Regulations on plagiarism and to acknowledge the
multiple forms that plagiarism takes along with the sanctions that can go as far as school exclusion.
Every infraction will be reported to the disciplinary board which will analyse the situation and
circumstances, and decide on the sanction to apply.


Academic dishonesty may take the forms of: 1. Plagiarism, i.e. copying the ideas or work of another
person without citing the source. This includes books, extracts of articles, tables, diagrams and material
from internet or other electronic sources. 2. Submission of work more than once, including work
submitted at a prior institution, unless prior approval has been obtained. 3. Cheating on an examination.
4. Submission of work that is not your own without citation. 5. Adding your name to work to which you
have not contributed or allowing another student to do the same. 6. Unauthorized or inappropriate use
of computers, calculators and other forms of technology in coursework, assignments or examinations.
All these can lead to disciplinary sanction.


Please refer to your student handbook for full details.