ADM710 - Finanas Internacionais (International Finance)

COPPEAD/UFRJ 1st term, 2011 20 hours Prof.: Ricardo P. C. Leal

Summary International monetary system. Foreign exchange regimes. Foreign exchange market. Foreign exchange parities. Foreign exchange exposure and risk management. International equity and bond financing. Currency swaps. Evaluation According to the average grade in the individual essays for assigned cases (70%) and meaningful class participation (30%). Essay will be due a couple of days before their corresponding class. Class material The class will be based on cases and exercises included in the course package. Optional Texts The textbooks by Eiteman, Stonehill & Moffett, Multinational Business Finance, any recent edition, by Shapiro, Multinational Financial Management, or by Madura, Finanas Corporativas Internacionais, may be used to help in the understanding of concepts and for additional exercises. There are also some Portuguese language book in the library, with a more limited coverage of the subjects.

Calendar Classes on Fridays, 10:30 am. All dates are tentative and changes may be made in the previous week. See the list of subjects below.
Date 18 Feb 25 Feb 4 Mar 11 Mar 18 Mar 25 Mar 1 Apr 8 Apr 29 Apr 6 May Week Subject 1 2 3 4 5 6 7 8 9 10 Int. Monet. Sys. Forex regimes Forex markets Forex parities Trans exposure Econ exposure Equity issuance Bond issuance Intl valuation Forex swaps

Extra readings Bartram & Dufey. International portfolio investment. Fin. Mkts. Instit. & Instruments, 10 (3), 2001. Bekaert & Harvey. Emerging markets finance. J. of Fin. Research, 2003. Carey. Global financial integration: a collection of new research. Working paper, 2004. Dimson, Marsh, Stauton. Longrun global capital market returns and risk premia. J. of Appl. Corp. Fin. 15(4), 2003.

ADM710 - Finanas Internacionais (International Finance)

COPPEAD/UFRJ 1st term, 2011 20 hours Prof.: Ricardo P. C. Leal
Program Week 1 - Class presentation and international monetary system No readings Week 2 - Foreign exchange regimes Case HKU710 Chinas Renminbi: our currency, your problem Week 3 - Foreign currency markets Note HBS 9-205016 Foreign exchange markets and transactions. Solve all the exercises in the Appendix for the class. Week 4 - Foreign currency parities Case HBS 4194 Groupe Ariel S. A.: parity conditions and crossborder valuation (brief case) Week 5 - Transaction exposure Case HBS 9-205-095 Foreign exchange hedging strategies at General Motors: transactional and translational exposures Week 6 - Economic and Political Risk Exposures Case HBS 9-205-096 Foreign exchange hedging strategies at General Motors: competitive exposures Case HBS 9-309-107 Petrobras in Ecuador (A) Week 7 - International equity issuance Note HBS 9-204022 Cross-border listings and depositary receipts Case HBS 9-205056 Nestl and Alcon - The value of a listing Week 8 - International bond issuance Case UV0283 Carrefour S.A. Week 9 - International valuation Case HBS 9-204043 Drilling South: Petrobras evaluates Pecon Week 10 - Currency swaps Note HBS 9-292043 Note on Foreign Currency Swaps