Dr. Michael L. Davis 328 FincherSouthern Methodist UniversityDallas, TX 75275-033 e-mail: [email protected] Hours: 5:15-6:15 T,Th or by appointmentMethod of Instruction: Although the class periods are structured to around a traditional lecture format, the class is small enough to permit extensive discussion and interaction. You should prepare for class by reading the relevant chapters and looking over any other materials.GradingScheduleCOURSE OUTLINEFIN 4329: International FinanceDr. Michael L. Davis 328 FincherEdwin L. Cox School of Business ph. (214) 768-2632Southern Methodist UniversityDallas, TX 75275-033 e-mail: [email protected] Hours: 5:15-6:15 T,Th or by appointmentRequired text: Eun and Resnick, International Financial Management, (3rd Edition)Objective: The purpose of this course is to give you a better understanding of the unique problems and opportunities presented by international business. Since the special emphasis of this course is finance, we will focus considerable attention on specific topics of international finance such as foreign exchange markets and managing exchange rate risk. However, one of therecurring themes of the course is that it is not possible to discuss international financial management without reference to larger issues presented by international operations. Thus, we will also spend time talking about topics such as international economics (e.g., the balance of payments and the role of central banks in setting exchange rates) and multinational strategy.Method of Instruction: Although the class periods are structured to around a traditional lecture format, the class is small enough to permit extensive discussion and interaction. You should prepare for class by reading the relevant chapters and looking over any other materials. GradingThere will be two midterm exams and two quizzes given on the dates listed below. The midterms will each contribute towards one-third of your total score and the quizzes will each contribute towards one-sixth of your total score. If you miss the first midterm for some valid and verifiable reason, your grade on midterm 2 will substitute. If you miss the second midterm some valid and verifiable reason, you will be given a grade of Incomplete and an alternate examwill be scheduled. If you miss either quiz for some valid and verifiable reason your grade on the other quiz will substitute. All SMU rules regarding academic honesty, drop days and so forth will be strictly observed. You do not have the option of doing “extra credit” assignments. Grades will be assigned on a competitive basis (i.e., a curve). I anticipate that the average grade will be B+. 1Statements of University PoliciesDisability Accommodations: Students needing academic accommodations for a disability must first contact Ms. Rebecca Marin, Coordinator, Services for Students with Disabilities (214-768-4557)* to verify the disability and establish eligibility for accommodations. They should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No. 2.4.) Religious Observance: Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.)Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity will be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue)2Schedule(Note: The exam dates are fixed, but the timing of the various topics may change slightly over the course of the semester. If you are uncertain as to what is to be covered, call, e-mail or come by.)Date DayTopic Lecture Number Chapter in Text16-Jan T Introduction 1 118-Jan Th International Monetary System 2 223-Jan T International Monetary System 2 225-Jan Th International Monetary System 2 230-Jan T National Income Accounting 3 31-Feb Th Balance of Payments 3 36-Feb T Foreign Exchange Markets 4a 48-Feb Th Quiz 1 13-Feb T Foreign Exchange Rates 4b 515-Feb Th Foreign Exchange Rates 4b 520-Feb T Foreign Exchange Rates 4b 522-Feb Th Foreign Exchange Rates 4b 527-Feb T Foreign Exchange Rates 4b 51-Mar Th Futures, Options and Swaps 6c 106-Mar T Midterm 1 8-Mar Th Futures,Options and Swaps 13-Mar T Spring Break 15-Mar Th Spring Break 20-Mar T Futures,Options and Swaps 6b 922-Mar Th Foreign Direct Investment and Country Risk 7 1527-Mar T Translation Exposure 8 1429-Mar Th Transaction Exposure 9 133-Apr T Transactions Exposure/Operating Exposure10 125-Apr Th Transactions Exposure/Operating Exposure10,11 13/1210-Apr T Quiz 2 11 1212-Apr Th Operating Exposure 11 1217-Apr T Financing Foreign Operations 12 1619-Apr Th International Capital Budgeting 13 1724-Apr T International Capital Budgeting 13 1726-Apr Th Midterm 2