Department of Finance
FINA3020A International Finance
Syllabus
Term 1, 2023—2024
1. INSTRUCTOR
Alvin Ang, PhD, CFA
Office: Room 854, Cheng Yu Tung Building
Email:
[email protected]Consultation Times: By appointment only
Teaching Assistant: TBD
Office: TBD
Email: TBD
Consultation Times: By appointment only
2. LECTURE DETAILS
This course is conducted from Week 1 through Week 13. The time and venue are:
Day Time Venue
Monday 2:30pm to 5:15pm NAH 11
3. COURSE CONTENT AND OBJECTIVES
This course introduces international finance and examines its increasingly important link to
economic globalization. Major topics covered in the course are foreign exchange markets,
exchange rate regimes, international parity conditions and exchange rate determination,
international capital markets, and international corporate financial management. The course
emphasizes key concepts and practices applicable to multinational corporations (MNCs).
Upon completion of this course, students should be able to:
• understand how the international monetary system functions and the roles of key
participants in the foreign exchange market including central banks, financial
intermediaries, corporations, and individuals,
• explain macroeconomic equilibrium relationships and parity conditions that determine
long-run exchange rate movements,
• explain how firms raise debt and equity capital in the global financial markets, and
• describe important aspects of the financial management of MNCs.
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4. PREQUISITES
Students should have completed FINA2010 Financial Management or FINA2310
Fundamentals of Business Finance or obtained the instructor’s permission to enroll in this
course.
5. TEACHING AND LEARNING ACTIVITIES
5.1 Lecture
The weekly lectures are based on prescribed readings from the textbook and discuss the
fundamental concepts from which students will develop in-depth knowledge through
application in the other learning activities. To maximize learning from each class, students are
expected to complete the readings prior to class.
5.2 Tutorial
The purpose of the tutorial is for students to apply concepts in a practical “real world” context.
We will review practice problems and assignment questions and discuss relevant current topics
in an interactive setting. The tutorials will be conducted during the last hour of each scheduled
class.
6. COURSE ASSESSMENT
Component Weight Due Date
Individual Assignments 20% Assignment 1: Week 4
Assignment 2: Week 9
Assignment 3: Week 10
Assignment 4: Week 12
Midterm Test 30% Week 7 (in class)
Final Examination 50% Week 13 (in class)
6.1 Individual assignments
There are four assignments, each constituting 5% of your course grade. You are required to
provide short written responses to conceptual or computational type questions. The questions
will be posted online in due course. You are reminded that this is an individual assignment;
plagiarism will not be tolerated.
6.2 Midterm test
The test consists of multiple choice and/or short-response questions covering topics from
weeks 1 to 6. More details will be provided in class.
6.3 Final examination
The exam consists of qualitative and quantitative structured questions covering all topics
discussed in the course. More details will be provided in class.
7. LEARNING RESOURCES
In addition to the lecture slides, the following resources are essential.
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7.1 Required textbook
International Financial Management, 9th Edition.
Eun, C. S., Resnick, B. G., and Chuluun, T.
McGraw Hill, (2021)
7.2 Reference books (optional)
a) International Financial Management, 3rd Edition
Bekaert, G. and Hodrick, R.
Cambridge University Press (2017)
b) Multinational Financial Management, 10th Edition.
Shapiro, A.
John Wiley High Education, (2013)
c) Global Investments, 6th Edition.
McLeavey, D. and Solnik, B.
Pearson, (2013)
8. LECTURE SCHEDULE
This schedule is subject to change without prior notice as deemed necessary by the instructor.
Week Date Topic Readings
1 4/9 Introduction Eun: Ch. 1
2 11/9 International Monetary System Eun: Ch. 2
3 18/9 Foreign Exchange Market Eun: Ch. 5
4 25/10 Balance of Payments Eun: Ch. 3
5 2/10 NO CLASS (PH)
6 9/10 International Parity Conditions and Eun: Ch. 6
Forecasting FX Rates
7 16/10 MIDTERM TEST
8 23/10 NO CLASS (PH)
9 30/10 International Debt and Equity Eun: Ch. 12, 13
Financing
10 6/11 FDI and Cross-Border Eun: Ch. 16
Acquisitions
11 13/11 International Capital Structure, Eun: Ch. 17, 18
Cost of Capital, and Capital
Budgeting
12 20/11 Multinational Cash Management Eun: Ch. 19
13 27/11 FINAL EXAM
9. STUDENT RESPONSIBILITIES AND CONDUCT
9.1 Academic integrity
CUHK adopts a zero-tolerance policy on cheating in examinations and plagiarism.
According to University guidelines, instructors are required to report all cases of suspected
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plagiarism or cheating during examination to the Disciplinary Committee. For full details of
the disciplinary guidelines and procedures, please refer to Section 6 of “Honesty in
Academic Work: A Guide for Students and Teachers”
(https://www.cuhk.edu.hk/policy/academichonesty/Eng_htm_files_(2013-14)/index_page2.htm).
9.2 Submission of assignments
All assignments must be submitted by the stipulated deadlines. No late submissions will be
accepted unless prior approval has been obtained from the instructor.
9.3 Test and examination
Students must sit for the midterm test and examination at the scheduled times. There will be
no supplementary test or examination available. The instructor reserves the right to adjust
assessment component weights for students who have obtained prior approval to miss the
test or examination. Only verified emergency situations may be considered. Students who
miss the test or examination without prior approval will automatically receive a zero mark
for the assessment component.
9.4 Conduct in class
Students are expected to abide by the University’s values and policies in relation to general
conduct including being respectful, civil, honest, and to play a vital role in creating a safe
and conducive learning environment.
9.5 Late-drop policy
1. As a general principle, late drop will normally not be considered except for unforeseen
reasons.
2. Proof of strong evidence is needed for late drop, especially after the middle of the academic
term (Nov/Dec for Fall term and March/Apr for Spring term). For example, medical
certificate will be needed for health-related reasons.
3. Late drop is unlikely to be approved in the last month of the academic term, except for
extenuating circumstances.
4. When submitting late drop applications, students should indicate whether their late drop
applications involve other courses as well. Late drop for multiple courses merits stronger
consideration for approval.
10. GRADE DESCRIPTORS
Grade Criteria
A/A- Outstanding performance in all learning outcomes.
B+/B/B- Substantial performance in all learning outcomes OR high performance in
some learning outcomes, which compensates for less satisfactory
performance in others resulting in overall substantial performance.
C+/C/C- Satisfactory performance in most learning outcomes, possibly with a few
weaknesses.
D+/D Barely satisfactory performance in several learning outcomes.
F Unsatisfactory performance in several learning outcomes OR failure to meet
specified assessment requirements.
