International Financial Management
Department of Finance
College of Business Administration
Kansas State University
Name: Dr. Amir Tavakkol
Office: 104 Calvin Hall
Office Hours: TU 8:30 - 11:00, or by appointment.
Required: Multinational Financial Management (6th edition) by Alan C. Shapiro (1999, John
Recommended: Regular reading of a financial newspaper such as the Wall Street Journal, or the
This course will aim to achieve three goals: a) to provide a basic understanding of economics of
exchange rates; b) to provide a knowledge of the structure and working of FX markets, and c) to
explore some financial management issues, challenges and opportunities that multinational
companies face in global markets.
CONDUCT OF THE COURSE:
Sources of information will be the textbook and lecture notes. I also encourage you to read on
international financial topics any chance you get. Homework problems will facilitate learning
the basic concepts that lectures cover. Other activities will include exams (one mid-term and one
final), and case discussions. More information on case discussions will follow.
GRADES AND EXAMS:
The total number of points will be computed from homework, two exams, and cases
presentations in the following manner:
1. Homework Assignments 100 points
2. Mid-term Exam 100 points
3. Final Exam 200 points
4. Case Discussions 100 points
TOTAL 500 points
Letter grades will be assigned from the usual decimal cut-offs.
1) If you have any condition, such as a physical or learning disability, which will make it
difficult for you to carry out the work as I have outlined or which will require academic
accommodation, please notify in the first two weeks of the course.
2) Students are required to obtain an e-mail address and submit it to the instructor in one week.
Students are also required to check their e-mail on a regular basis for messages. Also be
familiar with the structure of the “S” drive on which information and assignments are posted.
This drive is also accessible from the WWW.
3) Important dates: September 24: Last day to drop without a "W"
October 26: Last day to drop
4) Kansas State University Undergraduate Honor System: Fall semester 1999 marked the
beginning of Kansas State University's undergraduate Honor System. The basic difference
between the new Honor System and the previous method of adjudicating instances of
academic dishonesty is that students will hold majority representation on Hearing Panels,
whereas in the previous system, hearing panels were made up entirely of faculty and
administrators. This significant change gives students ownership of the effectiveness of the
Honor System and a reason to help protect the integrity of our University. It is expected in
all academic work in this class that all work be done individually by you. Do not collaborate
on any academic work unless specifically approved by your instructor. On all assignments,
examinations, or other course work undertaken by undergraduate students, the following
pledge is implied, whether or not it is stated: "On my honor, as a student, I have neither
given nor received unauthorized aid on this academic work." For more information, please
visit the Honor System web page at: http://www.ksu.edu/Honor.
TENTATIVE SCHEDULE OF CLASSES:
T: August 21 Introduction, Review of Syllabus
U: 23 Ch. 1: MFM?
T: 28 Ch. 2, What determines exchange rate?
U: 30 Ch. 3: IMS
T: September 4 Ch. 4, BOP
U: 6 Ch. 5, FX Markets
T: 11 Ch. 5, Contd.
U: 13 Ch. 5, Contd.
T: 18 Ch. 6, FX Futures & Options
U: 20 Ch. 6, Contd.
T: 25 Ch. 7, Parity Conditions
U: 27 Ch. 7, Contd.
T: October 2 Ch. 7, Contd.
U: 4 Ch. 7, Contd.
T: 9 Exam I
U: 11 Ch. 8, Accounting exposure
T: 16 Ch. 8, Contd.
U: 18 No class, FMA meetings
T: 23 Ch. 9, Hedging
U: 25 Ch. 10, Economic exposure
T: 30 Ch. 11, Managing economic exposure
U: November 1 Ch. 15, International financing
T: 6 Ch. 16, Swaps
U: 8 Ch. 18, Cost of Capital
T: 13 Ch. 19, Int. portfolio investments
U: 15 Ch. 20, FDI
T: 20 Ch. 21, Int. capital budgeting
U: 22 No class, Thanksgiving
T: 27 Case discussions
U: 29 Case discussions
T: December 4 Case discussions
U: 6 Case discussions
Shortly after the beginning of the semester, students will be divided into eight groups. Each
team will be working together to study, analyze and present the eight cases provided in the text.
The schedule of these case presentations will be as follows:
Case I.3 group I presents on 11/27/01 brief due on 11/20/01
Case I.4 group II presents on 11/27/01 brief due on 11/20/01
Case II.1 group III presents on 11/29/01 brief due on 11/20/01
Case II.5 group IV presents on 11/29/01 brief due on 11/20/01
Case II.6 group V presents on 12/4/01 brief due on 11/27/01
Case IV.2 group VI presents on 12/4/01 brief due on 11/27/01
Case V.1 group VII presents on 12/6/01 brief due on 11/29/01
Case V.2 group VIII presents on 12/6/01 brief due on 11/29/01
The designated groups will thoroughly study the case, analyze it, and prepare a four page brief,
which they will distribute to other groups and the instructor. This brief is due approximately one
week before the scheduled presentation. The brief should contain the presenting group’s analysis
of the case and should be:
-concisely written, and
-free of errors
The brief’s main body should be limited to four double-spaced pages and should consist of the
I. Statement of the problem
II. Relevant facts and assumptions
III. Analysis of the case
All supporting material, if you choose to include any, should be included in the appendix.
In preparing the brief, the presenting group should utilize all the relevant information contained
in the case and may use external data. The presentation should not take more than 20 minutes,
and should be done professionally, utilizing appropriate presentation methods (Power Point,
etc.). The presentation should not be substantially different from the brief. That is to say, your
brief should be prepared only after the final round of analysis and revision has been performed.
Make your presentation interesting and informative.
Grades for the group will be assigned on the basis of the quality and relevance of analysis,
integration of relevant theories, the quality of oral and written presentations, and degree of
preparedness in answering questions. Individuals grades will be based on their group’s
performance, adjusted for the instructor’s evaluation of the individual’s contribution, and peer
After each case presentation, other students will be given a chance to ask questions from and
comment on the presenting group's analysis. This Q/A session is very important in
understanding the case and also to enable me to assign individual grades. I expect everyone to
participate in the discussions (ask questions, answer questions, and comment).