FIN 1401   
International Finance (54905)-Spring 1997
R. Nelson


Prerequisites:  FIN 1301
Text:		Multinational Business Finance, Seventh Edition
	          Eiteman, Stonehill and Moffett
		  Addison Wesley; 1995
		Additional Readings (on reserve in library)

Grade Criteria: Three "Regular" Exams: 65% (I& II = 20% each, III = 25%) 
	        Three In-class "Exercises":   15%  (5% each)
                Case Analyses (and attendance and participation) :  20%
		Sample Grading Scale:    80   - 82.4 = B-  	             
				         82.5 - 87.4 = B
					 87.5 - 89.9 = B+

  
Course Objective:   The primary objectives of this course are the examination 
of a) the international financial environment (including the balance of 
payments process and the foreign exchange markets)  and b) the international 
finance function within a multinational firm. We will employ a combination
of lectures, text problems and cases, as well as additional readings.   
Examinations will cover assigned text material, problems and cases covered in 
class, additional readings ,  as well as specific information (not 
necessarily in the text or readings) presented in class lectures.  

OVERVIEW OF COURSE CONTENT:

I. 	Overview of International Monetary System; Balance of Payments Process;
 	Foreign Exchange and Currency Options Markets.

II. 	Exchange Rate "Exposure" Measurement and Management (Transaction and 
	Accounting); Sourcing Debt and Equity Internationally; Interest Rate 
        Risk Mgt.

III.	Capital Budgeting at the International Level; Political Risk Assessment
	(& Management); International Portfolio Investment Management.




                               		CLASS SCHEDULE

        Week Of                                         Text Material

	Jan 9                                           Introduction
            
	Jan 14                                  Chpt 2: International Monetary System
					    	
                                       
	Jan 21					Chpt 3:  Balance of Payments Process
						
	Jan 28					Exercise I (Balance of Payments Acct.)
						Chpt 4: Foreign Exchange Market (Intro.)

	Feb 4					Exercise II (Foreign Exch. Transactions)
						Chpt 5:  Exchange Rate Forecasting and 
						Covered Interest Arbitrage
               
	Feb 11					Foreign Exchange Markets (Continued)
	Feb 13					Exam I
						
	Feb 18					Chpt 7: Transaction Exposure 

	Feb 25					Chpt 9: Accounting Exposure
						Exercise III (Exposure Management)	
						
        Mar  4					Chpt 12& 13: Debt/Equity Financing
					
	Mar 11					Chpt 14 Interest Rate Risk Mgt.		
	Mar 13					Exam II

      (Mar 17 - Mar 21) 	                Spring Break!
                                   
	Mar 25					Chpt  18& 19: Capital Budgeting
						Political Risk Management

        Apr 1					Capital Budgeting (Casework)

	Apr 8					Chpt 20 Portfolio Investment

	Apr 15					Casework on International Portfolio Mgt

	Apr 22					Chpt 23 Advanced  Currency Risk Mgt.
			
	Tuesday  Apr 29    (3 - 5 p.m.)         Exam III