INT'L BUSINESS FINANCE

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FIN 321 (Sec 02) Nguyen Fall 2014(2).pdf

San Diego State University Department of Finance

Fall 2014: Aug 28–Dec 11

FIN 321 (Sec 02): Managerial Economics

Th 4–6:40pm (EBA-347)

Instructor: Hung Nguyen, Ph.D.

Office: EBA 327

Phone: 1 (619) 5949–0975

Email: [email protected]

Office Hours: TTh 12:30–2pm or by appointment

Course Objectives

Study the application of analytical tools and microeconomic concepts to corporate resource

allocation, demand and cost determination, industry positioning, and pricing mechanism.

BSBA Program Goals

BSBA students will graduate being:

1. Effective Communicators

2. Critical Thinkers

3. Able to Analyze Ethical Problems

4. Global in their perspective

5. Knowledgeable about the essentials of business

Student Learning Outcomes At the end of this course students should be able to:

1. Use stylized examples; determine if a company is optimally employing available resource.

2. Calculate demand elasticity from demand equations.

3. Categorize economic costs.

4. Contrast the decision-making process across industries characterized by pure competition,

monopolies, and oligopolies.

5. Illustrate common pricing strategies.

6. Give examples of the government ensuring the legal behavior of firms.

Textbook: “Managerial Economics and Business Strategy” (8 th

edition) by Baye and Prince.

You should use the online learning center at www.mhhe.com/baye8e to accompany the textbook.

It has a number of quizzes for each chapter which you can practice to improve your

understanding of the material.

Classroom Etiquette

Students are expected to attend every class meeting and to participate in a variety of course

activities. You may use a laptop/iPad during class sessions for taking notes and viewing lecture

notes. However, refrain from activities unrelated to the class discussion, students using devices

to text, check email, and other disruptive activities will be asked to leave the classroom. You

should bring a calculator to every class session.

Student with Disabilities

If you are a student with a disability and believe you will need accommodations for this class, it

is your responsibility to contact Student Disability Services at (619) 594-6473. To avoid any

delay in the receipt of your accommodations, you should contact Student Disability Services as

soon as possible. Please note that accommodations are not retroactive, and that I cannot

provide accommodations based upon disability until I have received an accommodation letter

from Student Disability Services. Your cooperation is appreciated.

Grade Policy: Department of Finance

1.0 Grades shall genuinely distinguish between high and low levels of academic achievement.

1.1 Undergraduate grades shall be: A, outstanding achievement; B, praiseworthy performance; C

satisfactory performance; D, minimally passing and F, failing. The grade for average

undergraduate achievement shall be C. In essence,

Percentage of total points Guaranteed Course Grade

93 to 100

90 to 92

87 to 89

83 to 86

80 to 82

77 to 79

73 to 76

70 to 72

67 to 69

63 to 66

60 to 62

0 to 59

A

A-

B+

B

B-

C+

C

C-

D+

D

D-

F

1.2, 1.3, and 1.5 [N/A]

1.4 Normally the mean of the grade distribution in each class will be within the following ranges:

FIN 240 1.8 – 2.5

FIN 323 1.8 – 2.4

Other Upper Division 2.2 – 2.9

Graduate (500+) 2.9 – 3.5

Assessment: Your course grade will be based on two components with the following weights:

Component Weight

3 Exams 3 × 30%

Assignment 10%

Exams

The exams will cover material from the textbook and lectures and will consist of problem

solving and essay questions. They will be administered in a closed-book and closed-notes

format. You will need a simple calculator for exams. No other electronic devices are permitted

during exams. To take exams, students must present a photo ID such as a SDSU ID card or a

driver’s license. All exams will be retained. Make-up exams will be given only to students who

notify the instructor of a compelling reason for an absence on an exam date in advance.

Cheating and Plagiarism

Academic dishonesty will be handled as stated under the Procedures and Regulations section of

the University Catalog.

Tentative Course Outline *

Week/Date Topic(s) Chapter(s)

1/Aug 28 The Fundamentals Managerial Economics 1

2/Sept 04 Market Forces: Demand and Supply 2

3/Sept 11 Quantitative Demand Analysis 3

4/Sept 18 The Theory of Individual Behavior 4

5/Sept 25 Exam 1 (Thursday, Sept 25) 1–4

6/Oct 02 The Production Process and Costs 5

7/Oct 09 The Organization of the Firm 6

8/Oct 16 The Nature of Industry 7

9/Oct 23 Game Theory: Inside Oligopoly 10

10/Oct 30 Exam 2 (Thursday, Oct 30) 5–7, 10

11/Nov 06 The Economics of Information 12

12/Nov 13 The Economics of Information (cont.) 12

13/Nov 20 Advanced Topics in Business Strategy 13

14/Nov 27 Thanksgiving Day (Campus closed) N/A

15/Dec 04 Government in the Marketplace 14

16/Dec 11 Exam 3 (Thursday: 4–6pm) 12–14

* Changes, if any, will be announced in class.

FIN 329 (Sec 03) Nguyen Fall 2014.pdf

San Diego State University Department of Finance

Fall 2014: Aug 26–Dec 11

FIN 329 (Sec 03): International Business Finance

Tuesdays 4–6:40pm (EBA–347)

Instructor: Hung Nguyen, Ph.D.

Office: EBA 327

Phone: 1 (619) 5949–0975

Email: [email protected]

Office Hour: TTh 12:30–2pm and by appointment

Course Objectives

To study the role that international trade and investment, currency movements, derivative

instruments, hedging strategies, international financial markets, and international agreements and

institutions play in the management of multinational corporations.

BSBA Program Goals

BSBA students will graduate being:

1. Effective Communicators

2. Critical Thinkers

3. Able to Analyze Ethical Problems

4. Global in their perspective

5. Knowledgeable about the essentials of business

Student Learning Outcomes At the end of this course, students should be able to:

1. Identify the reasons for international trade;

2. Describe the importance of balance of trade and balance of payments to the development of

macroeconomic policy;

3. Discuss the role that international institutions play in the global arena;

4. Judge whether international parity conditions are met;

5. Describe the various currency arrangements a country may adopt;

6. Identify opportunities for arbitrage and discuss methods to exploit these opportunities;

7. Describe and distinguish among alternative derivative instruments, including the different

types of exposures multinational corporations face when using derivative instruments;

8. Evaluate cross-border investment opportunities, and describe a multinational firm’s decision-

making process for long-term capital budgeting, short-term cash-flow management, and the

management of international taxation.

Textbook: “Multinational Business Finance” (13 th

edition) by Eiteman et al.

A companion website, www.pearsonhighered.com/eiteman, contains access to chapter exhibits,

Internet exercises, and glossary flashcards.

Classroom Etiquette

Students are expected to attend every class meeting and to participate in a variety of course

activities. You may use a laptop/iPad during class sessions for taking notes and viewing lecture

notes. However, refrain from activities unrelated to the class discussion, students using devices

to text, check email, and other disruptive activities will be asked to leave the classroom.

Student with Disabilities

If you are a student with a disability and believe you will need accommodations for this class, it

is your responsibility to contact Student Disability Services at (619) 594-6473. To avoid any

delay in the receipt of your accommodations, you should contact Student Disability Services as

soon as possible. Please note that accommodations are not retroactive, and that I cannot

provide accommodations based upon disability until I have received an accommodation letter

from Student Disability Services. Your cooperation is appreciated.

Grade Policy: Department of Finance

1.0 Grades shall genuinely distinguish between high and low levels of academic achievement.

1.1 Undergraduate grades shall be: A, outstanding achievement; B, praiseworthy performance; C

satisfactory performance; D, minimally passing and F, failing. The grade for average

undergraduate achievement shall be C. In essence,

Percentage of total points Guaranteed Course Grade

93 to 100

90 to 92

87 to 89

83 to 86

80 to 82

77 to 79

73 to 76

70 to 72

67 to 69

63 to 66

60 to 62

0 to 59

A

A-

B+

B

B-

C+

C

C-

D+

D

D-

F

1.4 Normally the mean of the grade distribution in each class will be within the following ranges:

FIN 240 1.8 – 2.5

FIN 323 1.8 – 2.4

Other Upper Division 2.2 – 2.9

Assessment: Your course grade will be based on three components with the following weights:

Component Weight

3 Exams 3 × 30%

Assignment 10%

Exams

The exams will cover material from the textbook and lectures and will consist of multiple-choice

and essay questions. They will be administered in a closed-book and closed-notes format. You

will need a simple calculator for exams. No other electronic devices are permitted during exams.

To take exams, students must present a photo ID such as an SDSU ID card or a driver’s license.

All exams will be retained. Make-up exams will be given only to students who notify the

instructor of a compelling reason for an absence on an exam date in advance.

Cheating and Plagiarism: Academic dishonesty will be handled as stated under the Procedures

and Regulations section of the University Catalog.

Tentative Course Outline*

Week/Date Topic(s) Chapter(s)

1/Aug 26 Multinational Challenges and the Global Economy 1

2/Sept 02 The International Monetary System 3

3/Sept 09 The Balance of Payment 4

4/Sept 16 The Continuing Global Financial Crisis 5

5/Sept 23 Exam 1 (Tuesday, Sept 23) 1, 3–5

6/Sept 30 The Foreign Exchange Market 6

7/Oct 07 International Parity Conditions 7

8/Oct 14 Foreign Currency Derivatives and Swaps 8

9/Oct 21 Foreign Exchange Rate Determination and Forecasting 9

10/Oct 28 Exam 2 (Tuesday, Oct 28) 6–9

11/Nov 04 Transaction Exposure 10

12/Nov 11 Veterans Day (Campus closed) N/A

13/Nov 18 Translation Exposure 11

14/Nov 25 Operating Exposure 12

November 27: Thanksgiving Day (Campus closed) N/A

15/Dec 02 Multinational Tax Management 15

16/Dec 09 International Trade Finance 20

17/Dec 16 Exam 3 (Tuesday: 4–6pm) 10–12,15, 20

* Changes, if any, will be announced in class.