Syllabus
International Banking and Trade Finance

Syllabus Sections

Publish Date

08/18/2011 12:05:48

International Banking and Trade Finance

IBUS-2339

Fall 2011
08/22/2011 - 12/11/2011

Course Information

Section 001
Lecture
M 7:30PM - 10:20PM
NRG2 2120
Jerry Mitchell
jmitche3@austincc.edu
(512) 223.1790 x26139

Office Hours

No office hours have been entered for this term.

Course Requirements

 

                                     

 

 

AUSTIN COMMUNITY COLLEGE

Course Syllabus

 

International Banking and Trade Finance

IBUS 2339

Fall 2011

August 22 - December 11, 2011

 

 

Course:

 

IBUS 2339-001

 

Sessions:

Mondays

7:30-10:20 P.M.

Course synonym 38785

NRG 2 Room 2120

 

Instructor:

Jerry Mitchell

 

Office Hours:

6:00-7:30 P.M. Mondays– Adjunct Faculty Lounge, Room # (to be announced)

 

Telephone:

Cell (512) 350-8260 (preferred option)

Voice Mail 223-1790 x26221

 

Fax:

 

223-0919

 

E-Mail:

jmitche3@austincc.edu

 

Website:

 

Blackboard:

https://sites.google.com/a/austincc.edu/jmitchell

 

http://acconline.austincc.edu 

 

Departmental Information for the International Business Institute:

Web site:  www.austincc.edu/ibi

Tel. 223-0178

 

Course Description:

The deregulation of financial markets, innovations in products and services, and advances in technology have all led to the globalization and integration of capital markets. This internationalization of business has, in turn, resulted in increased complexity of corporate financial decision making, rendering it imperative that future international business  managers have a thorough understanding of international financial systems and their impact on corporate performance.

This course focuses on financial management issues faced by small and large business exporters as well as by employees of multinational corporations in an environment of fluctuating exchange rates, global financing issues, and international taxation.

The first part of the course focuses on the structure and operation of foreign exchange markets, international money and capital markets, and financial management issues faced by multinational corporations - including currency exposure management, international project financing and capital budgeting.   The second part of the course focuses on aspects of financing related to optimizing and financing working capital, international alliances and acquisitions, and international trade.  The course will also explore issues of international taxation.

 

Textbook:

  • Textbook: “International Corporate Finance,” first edition, by J. Ashok Robin (JAR), McGraw Hill, New York, 2011. ISBN 987-0-07-353066-6
  • Another book of possible interest, but not required, is “finance of international trade,” first edition, by Eric Bishop, Elsevier, Oxford, 2008. ISBN 978-0-7506-5908-6 (Available new and used on Amazon)

 

The textbook is available only at the ACC bookstore at the Northridge Campus. 

 

Teaching Method:

The course uses a seminar format and seeks to minimize formal lecturing.  Strong emphasis is placed on the discussion and presentation of case studies, text materials, and math-type problems related directly to each chapter’s content.  This develops a student’s analytical and mathematical ability and provides an opportunity to improve interpersonal and communication skills.  The teaching style requires you to come well prepared to class by reading the chapter assigned for each week, analyzing the related case study, and completing assigned problems.  You will be asked to discuss anything related to the assigned readings, cases, and problems.

 

Course Rational:

This course provides students with a broad understanding of the principles of international banking and finance.  The course will help students develop the analytical skills needed to determine and examine the financial strategies and structures of businesses operating in the international business arena.

 

Course Learning Objectives

           

General:At the conclusion of the course, the student should have:

  • An understanding of the foundations of international financial management;
  • An understanding of the foreign exchange market and exchange rate determination;
  • A realization of the risks involved in international financial management and how to mitigate them;
  • An understanding of world financial markets and the institutions involved; and
  • An understanding of the tools and tactics used in the financial management of a multinational firm.

 

Specific:At the conclusion of the course the student should be able to:

  • Describe the international financial environment: fund flows between countries, balance of payments, and the function of international institutions such as the IMF.
  • Describe spot foreign exchange (fx) rates and their determinants.
  • Describe foreign exchange derivatives such as forwards, futures and options and demonstrate their valuation.
  • Measure fx exposure with an emphasis on commercial, transaction and economic exposure.
  • Evaluate fx exposure with an emphasis on hedging using options, such as forwards, swaps and money market instruments.
  • Evaluate fx exposure using operational and financial decisions.
  • Discuss the basics of international capital budgeting.
  • Compute NPV using advanced budgeting techniques: handle country risk, parent-subsidiary asymmetry and real options.
  • Explain and evaluate cross-border acquisitions and alliances such as licensing agreements, JVs and mergers.
  • Understand the various methods used to finance international trade.
  • Discuss international taxation issues that impact multinational corporations.

 

 

Course Material:

  1. Course Textbook:  See above. 
  2. Blackboard:  Course announcements, useful sites, and other relevant information will be posted on the class Blackboard site at:  http://acconline.austincc.edu.   Check the site constantly for announcements etc!
  3. Periodicals, Newspapers, Internet, All available appropriate online and library materials (see below for a list of suggested materials).

 

Course Requirements:

  • Attend and participate in class.
  • Read required material.
  • Take 4 tests during the semester.
  • Prepare weekly case study.
  • Prepare weekly problem solution assignments.

 

Grading:

 

 

  • 4 Tests (15% each)

60%

 

  • In Class Discussion and Analysis of chapter material and weekly case study

20%

 

 

  • Completion of and analysis of

problem sets                                         20%

 

 

How Points and Percentages Equate to Grades (Recommended ACC grading scale.)

 

A

90 – 100

A= Excellent performance. Work is exemplary and worthy of emulation by others. Student is in full attendance and constructively contributes to the learning environment.

B

80 – 89

B= Above average performance. All assignments are complete and exhibit a complete understanding and an ability to apply course concepts.

C

70 – 79

C= Average performance. Accomplishes the minimum requirements to satisfy course requirements. Oral and written communication is at an acceptable level for a college student.

D

60 – 69

D= Demonstrates understanding at the most rudimentary level.  Work is minimally passing.

F

0 – 59

F= Work is not passing, characterized by incompleteness, lateness, or unsatisfactory demonstration of understanding or application of course concepts.

 

Periodicals Focusing on International Business:

Here is a small sample of well written publications that focus on issues pertaining to international banking and finance.  You are not limited to only these publications—they are suggestions.

 

You should be able to find most of these publications at your local library or ACC libraries.  I’ve also listed their websites.  (Some of the sites require a sign up which is usually free.)  

 

 

Business Week: http://www.businessweek.com/

 

Economist: http://www.economist.com/

 

New York Times:  http://www.nytimes.com/

 

Financial Times: http://news.ft.com/home/us/

Wall Street Journal: http://online.wsj.com/public/us

 

 

Instructor’s Bio:

 

Jerry Mitchell currently teaches international business at Austin Community College and also served as Associate Director of the College’s Export Education Program in 2008 and 2010.  From 2008-2010, he served as Chair of the Camino Real District Export Council, a volunteer organization that assists small business throughout Central Texas to export.  From 2005-2006, Jerry served as Executive Director of the International Center of Austin. The International Center is a non-profit working to promote international educational, cultural, and business activities in the Greater Austin area.  In cooperation with a number of partners, he developed a very active business outreach program, focused on educating small business on the skills and knowledge needed for successfully conducting international business. 

 

Prior to his recent work in Austin, Jerry spent 29 years with the U.S. Foreign Commercial Service helping U.S. business overseas.  He last served as Senior Commercial Officer in Mexico from 2002-2004.  From 1999-2001, he served in Washington, DC, as Deputy Director General for the Commercial Service, the top career position in the Service.  Prior to assuming those duties in 1999, Jerry served in Korea, Belgium, Greece, Canada, and two African countries.  Jerry is married with two children.  He speaks French, Spanish, and Greek. 

 

 


 

 Week-by-week topics (16 weeks of classes) *SEE NOTE BELOW

 

 

Week

 

Topic and Chapter Covered

 

Chapter

 

Case for class discussion

 

 

Grading Items

1

Globalization & MNCs

1

Clover 1

Fill out bio sheet

 

2

International Financial Markets

2

Clover 2

CH 2 Problems 1,2,4,8,11, and 12

3

NO CLASS – LABOR DAY

 

 

 

 

4

Currency Derivatives

3

Clover 3

CH 3 Problems 1,2,5,6

 

5

Currency Systems and Valuations

4

Clover 4

Test 1 (chapters1-3)

 

6

Catch Up Class and Brief Discussion of Parity Conditions & Forecasting (no CH 5 problems)

5

Clover 5

CH 4 Questions 11, 14, 15, 16

 

7

Currency Risk Exposure Measurement

6

Clover 6

CH 6 Problems 1,4, 6,11,13, and 16

 

8

Currency Exposure Management

7

Clover 7

CH 7 Problems 1, 3,4, 5, 10, 12, 15,17

 

9

Capital Budgeting (Not covering Ch 9 on Advanced Capital Budgeting)

8

Clover 8

Test 2 (chapters4-7)

10

Catch Up Class and Brief Discussion of Long Term Financing (no CH 10 problems)

10

Clover 10

CH 8 Problems 1, 2, 3,4,7, 8, 10, and 12

 

11

Working Capital Management

11

Clover 11

CH 11 Problems 1,2, 5,8

 

12

Int’l Acquisitions & Alliances

12

Clover 12

Test 3 (chapters 8, 10, 11)

 

13

International Trade Finance

13

Clover 13

CH 12 Problems 1,4,6,7,8

 

14

Continued Work with International Trade Finance

 

Readings to be assigned

 

 

CH 13 Problems 1,2,3,4,5

Other problems to be assigned

15

International Taxation and Accounting (Not covering Ch 15 on International Portfolio Investment)

14

Clover 14

CH 14 Problems 1,2,7,8,9,10

16

Final Test and Class Wrap-Up

 

 

Test 4 (chapters12-14)

 

*PLEASE NOTE THAT THE PROBLEMS ASSIGNED FOR A PARTICULAR CHAPTER MAY BE CHANGED AS WE WORK OUR WAY THROUGH THE COURSE.

 

Changes to the Syllabus:

The instructor reserves the right to change the lecture topics, assignments and test dates highlighted in this syllabus.  If changes are deemed necessary, such changes will be conveyed to students in a timely manner, both in class, by email, and on Blackboard.

 


 

 

Key Dates:

 

Key ACC Dates

 

September 5

Labor Day – No ACC Classes

September 12

Withdraw with 70% refund

September 19

Withdraw with 25% refund

November 17

Final Withdrawal date 16 week courses

November 24 and 25

No Classes Thanksgiving

December 11

Semester Ends

 

 

 

Missed Exam Dates:

Extensions are granted on a case-by-case basis.  Students taking an exam late without first receiving the instructor’s consent will have their overall score reduced by 15%.

 

The Rule of Three:  ACC has implemented a rule that will affect tuition for students who attempt a course three or more times.  The rule is called “The Rule of Three,” and is based on state tuition reimbursement laws.  Students who attempt a course for the third (or more) time will be charged an additional $60 per credit hour for that course.   Complete information can be found at http://www.austincc.edu/admiss/ruleofthree/.

 

Third Attempt Courses- Students are charged a higher tuition rate for courses they repeat for the third or more time. The “third attempt” course tuition rate applies to majority of credit and Continuing Education courses, counting each time a student has taken a course since fall 2002. “Third attempt” tuition does not apply to Developmental Education courses and other select courses, including special topics courses.

 

Withdrawing from a course-Per state law, students enrolling for the first time in fall 2007 or later at any Texas college or university may not withdraw (receive a W) from more than six courses during their undergraduate college career. Some exceptions for good cause could allow a student to withdraw from a course without having it count toward this limit. Students are encouraged to carefully select courses; contact an advisor or counselor for assistance.

 

 

SCANS:

Responsibility

Exerts a high level of effort and perseverance toward goal attainment.  Works hard to become proficient at doing tasks by setting high standards, paying attention to details, and displaying a high level of concentration even when assigned an unpleasant task. 

Self-Management

Assesses own knowledge, skills, and abilities accurately; sets well-defined and realistic personal goals, monitors progress toward goal attainment and motivates self through goal achievement; exhibits self-control and responds to feedback unemotionally and non-defensively, is a "self-starter."

Creative Thinking

Uses imagination freely, combines ideas or information in new ways, makes connections between seemingly unrelated ideas, and reshapes goals in ways that reveal new possibilities.

 

Course Policies:

Attendance

Attendance at all classes is expected and required.  Emergencies may arise.  If an emergency arises, the student should, if at all possible, inform the instructor of the situation by telephone or email prior to the class being missed.  Students must always inform the instructor as to the reason for a missed class prior to the next class so that make up arrangements re class material and assignments can be made.  If the emergency involves a test, a make up will be scheduled as soon as possible.  A second missed test in a given semester may not be made up, except under unusual and unavoidable circumstances. 

Contacting the Instructor

You can reach me by cell phone (350-8260) or email at jmitche3@austincc.edu

 

Communicating via Blackboard

The instructor has set up an electronic message board site specifically for this class.  (See the URL address on the first page of the syllabus.)  It is a useful means for posting information that is needed by the entire class. Critical class information will be posted on the blackboard on a regular basis.

 

Student Withdrawal Policy

It is the responsibility of the student to withdraw from the class.  If you are unable to complete this course, because of illness, moving, etc., please officially withdraw from the class.  Not withdrawing from the class may result in the receipt of a failing grade.  See the date for final withdrawal under Key ACC Dates given above.

 

Incomplete

Incompletes are discouraged and will only be given for extenuating circumstances.  Time conflicts and poor time management are not acceptable reasons; ACC has a very liberal drop policy that you can and should use in these circumstances.

 

Scholastic Dishonesty

Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work.  Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework.

 

Academic Freedom

Each student is strongly encouraged to participate in class.  In any classroom situation that includes discussion and critical thinking, there are bound to be many differing viewpoints.  Students may not only disagree with each other at times, but the students and instructor may also find that they have disparate views on sensitive and volatile topics.  It is my hope that these differences will enhance the class and create an atmosphere where students and instructors alike will be encouraged to think and learn.  Therefore, be assured that your grade will not be adversely affected by any beliefs or ideas expressed in class or assignments.  Rather, we will respect the views of others.

 

Office of Students with Disabilities

Each ACC campus offers support services for students with documented physical or psychological disabilities.  Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes.  Students are encouraged to do these three weeks before the start of the semester.

 

Student Discipline

Students in the Austin Community College District ("ACCD") are recognized as responsible persons who neither lose the rights nor escape responsibilities of citizenship.  Enrollment in the College indicates acceptance of the rules set forth in this policy administered through the Office of the Director of Student Services.  Due process through an investigation and appeal process is assured to any student involved in disciplinary action.  For more information on student discipline, please refer to the following link:  http://www2.austincc.edu/admrule/4.02.010.htm

Student Services

AustinCommunity Collegeis an institution committed to helping all students achieve their educational and career goals.  This section of the Catalog provides basic information about programs and services offered by the College to increase the chances that students will succeed.  Check the web address listed under Student Services for information about office hours, additional services, or contact people.

 

 

 

Student services include:  advising, assessment, financial service, job referral, etc.  For more information on Student Services, please refer to the following link:  www.austn.cc.tx.us/resources_students/services

 

 

Additional Information:

It is ACC’s policy not to allow smoking, food, drinks, children, drugs, alcohol, or weapons in the classroom.  Use of cell phones, except at the break and to deal with emergencies, is not allowed in the classroom.  Mute or turn off your cell phones before class begins. 

 

Six Withdrawals Limit:

State law permits students to withdraw from no more than six courses during their entire undergraduate career at Texas public colleges or universities. Students who reach their withdrawal limit must remain on the class roll unless they request and receive approval for a withdrawal exception.   See http://www.austincc.edu/handbook/acaguide2.php#droppingfor details.

 

Policy on Students with Disabilities:

Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester.