instructor: dr. keith christian jensen malaspina university-college, british columbia, canada csu...

Instructor:Instructor:

Dr. Keith Christian JensenDr. Keith Christian JensenMalaspina University-College, British Columbia, CanadaMalaspina University-College, British Columbia, CanadaCSU – Hayward, CaliforniaCSU – Hayward, CaliforniaJensen Economic ConsultingJensen Economic Consulting

Email: Email: kcj@JensenEconomics.comkcj@JensenEconomics.comWeb: Web: www.JensenEconomics.comwww.JensenEconomics.comLecture notes: Lecture notes: www.JensenEconomics.com/Moscow/www.JensenEconomics.com/Moscow/

FIN 6375 Seminar in FIN 6375 Seminar in Multinational Financial Multinational Financial ManagementManagement

FIN 6375 Seminar in FIN 6375 Seminar in Multinational Financial Multinational Financial ManagementManagement

South-Western/Thomson Learning © 2003

Course Objectives…Course Objectives…

• The basic objective of this course is to The basic objective of this course is to provide the overall insight of provide the overall insight of multinational financial management multinational financial management and extend the application of financial and extend the application of financial tools, techniques, and theories to tools, techniques, and theories to multinational corporate financial multinational corporate financial management. The course covers the management. The course covers the study of international financial study of international financial environment and financial management environment and financial management of international firms. of international firms.

Course ObjectivesCourse Objectives

• It is expected that the course, upon It is expected that the course, upon completion, will enable students to deal with completion, will enable students to deal with financial issues which multinational firms financial issues which multinational firms encounter in financial decision making encounter in financial decision making process under diverse market conditions. In process under diverse market conditions. In this light, the course focuses on the this light, the course focuses on the following three areas:following three areas:– Multinational RiskMultinational Risk– Multinational Investment AnalysisMultinational Investment Analysis– Multinational FinancingMultinational Financing

Course Requirements…Course Requirements…

• The course requirement includes – two exams, – a research project, and – group presentation and discussion of the

prescribed cases and articles.• The exams will be based on the prescribed reading

materials and the materials covered in the class.• Everybody is required to work on a research project

in the area related to multinational financial management and submit by the scheduled date. The areas for the research project will be suggested.

Course Requirements…Course Requirements…• Cases and articles are prescribed for

analysis and class discussion. You are required to sign up (in the group) only one case or an article to analyze and present in the class. Each group will be responsible to thoroughly prepare for class discussion, to respond to questions from others, and to turn in a detailed analysis of the case or the article on the day it is scheduled.

Course RequirementsCourse Requirements

• The group will need to meet several times before the scheduled date to prepare answers to all possible questions.

• The case analysis should cover a clear (i) identification of problems, (ii) analysis of problems, (iii) recommendations and (iv) expected results.

• The report on article should cover a detailed summary of (i) methodology, (ii) models, (iii) findings, and (iv) subsequent development in the area.

Course Procedures & Course Procedures & Policies…Policies…• Students are responsible to read the assigned

subject matters as scheduled and work on the problems as assigned. This is a seminar class. Your participation is a MUST. Your participation in the class discussion of all cases, articles and assignments is a part of the course requirement and will be given credit.

• A make up exam is scheduled for those who miss one of the two exams. In fairness to all, make-ups will be comprehensive. If you miss both exams, you automatically fail the course.

Course Procedures & Course Procedures & PoliciesPolicies• No incomplete will be given except under

medical grounds or force majure (unavoidable circumstances). Pre-approval is required. If you decide to drop the course, please remember the last day for dropping the course with “W”. Refer to the current schedule.

• You must have completed Fin 6300 prior to taking this course. No exception to this policy. Please refer to the university catalog.

Course EvaluationCourse Evaluation

ACTIVITYACTIVITY POINTSPOINTS DATEDATE

Exam IExam I 3535 26 May26 May

Exam IIExam II 3535 5 June5 June

Case or ArticleCase or Article 1010 As scheduledAs scheduled

Research ProjectResearch Project 1515 5 June5 June

ParticipationParticipation 55

TOTALTOTAL 100100

Class ScheduleClass Schedule

19 May – Lecture 1 Multinational Finance Overview

20 May – Lecture 2 Exchange Rates, spot & derivatives

22 May – Lecture 3 Arbitrage, Interest Rates & FX

23 May – Lecture 4 Exposure Risk Management

26 May – EXAM I & Lecture 5 Trading Finance

27 May – Lecture 6 Direct Investment & Country Risk

29 May – Lecture 7 Short Term Finance & Cash Mgt.

30 May – Lecture 8 Multinational Capital Budgeting

2 June – Lecture 9 Multinational Capital Structure

3 June – Lecture 10 Long Term Financing

5 June – EXAM II & Projects Due