Department of Finance

Faculty of Business
Chu Hai College of Higher Education
FNE306 International Finance
Course Document for Fall Semester in the Year 2015-16
Instructor: Prof. Raymond Tse
Email: rtse@chuhai.edu.hk
Time: 11:40a.m.-2:10p.m. (Thur.)
Venue: Room 310
I.

COURSE DESCRIPTION and LEARNING OUTCOMES

Course Description
In this course, students would acquire the competence in managing foreign currencies
and associated financial matters in a multinational and commercial environment. The
course includes international financial systems, foreign exchange regimes and markets,
international parity conditions, international financial markets, derivatives and
management of foreign exchange exposures, international capital structure, capital
budgeting and cash management, and interest rate and currency swaps. Upon
completion of the course, students would have the ability to analyze and devise
solutions to the contemporary complex economic and financial issues in a
multinational setting.

Prerequisites: FNE 101 Principles of Finance, BBA 112A/B Economics I/II

Textbook (Required)
Mofett, M.H., Stonehill, A.I. and Eiteman, D.K. (2014). Fundamentals of
Multinational Finance, 4th edition. Pearson Education Limited.

Program Learning Objectives (PLOs)

PLO1: To apply knowledge of management and finance to personal and corporate
financial management.
PLO2: To think and reason independently and critically to different alternatives in
problem solving and to communicate effectively the process and results of
1

the solution in writing and conversation for professional presentation and

technical document.
PLO3: To apply economic and financial concepts and develop deterministic and
stochastic models by simple to advanced mathematics, numerical methods,
computer simulation, or data analysis techniques to solve practical financial
and economic problems, especially with a Greater China focus.
PLO4: To extend knowledge to successfully pass professional examinations, further
study, and develop management solution (potentially using the acquired
sectorial financial skills and knowledge) vital for career advancement in a
financial institution.
PLO5: To work effectively and responsibly as a team member to accomplish a
common goal and be cognizant of the professional and ethical responsibility
in developing financial systems, rules and regulations.
PLO6: To possess broad general knowledge in social, cultural, historical and
political context for all-round development with acumen to the problems and
solutions of current economic and financial issues, and a strong sense of
social commitment, global vision, creativity and adaptability.
Course Intended Learning Outcomes (CILOs)
Upon completion of the course, students should be able to:
1. Distinguish the current international monetary systems, foreign exchange
markets, international financial markets and foreign currency products.
2. Determine foreign exchange rate based on foreign exchange theories.
3. Manage various types of foreign exchange exposures for MNEs.
4. Be familiar with the special issues of portfolio management under international
settings.
Alignment of Program and Course Learning Objectives
Program Learning Outcome

Course Learning Outcome

1. To apply knowledge of management and finance CLO1, CLO2, CLO3

to personal and corporate financial management.
2. To think and reason independently and critically CLO1, CLO2, CLO3, CLO4
to different alternatives in problem solving and to
communicate effectively the process and results of
the solution in writing and conversation for
professional presentation and technical document.
3. To apply economic and financial concepts and
develop deterministic and stochastic models by
2

CLO2, CLO3

simple to advanced mathematics, numerical

methods, computer simulation, or data analysis
techniques to solve practical financial and economic
problems, especially with a Greater China focus.
4. To extend knowledge to successfully pass

CLO1, CLO2, CLO3, CLO4

professional examinations, further study, and

develop management solution (potentially using the
acquired sectorial financial skills and knowledge)
vital for career advancement in a financial
institution.
5. To work effectively and responsibly as a team CLO1, CLO2, CLO3, CLO4
member to accomplish a common goal and be
cognizant of the professional and ethical
responsibility in developing financial systems, rules
and regulations.
6. To possess broad general knowledge in social, CLO1, CLO2, CLO3, CLO4
cultural, historical and political context for all-round
development with acumen to the problems and
solutions of current economic and financial issues,
and a strong sense of social commitment, global
vision, creativity and adaptability.
II. COURSE DELIVERY and COURSE ASSESSMENT
Teaching and Learning Activities
TLA1. Lectures
Forty lecture hours for the whole course dividing into 17 week class hours
including 1 examination week hours. Students are asked to actively participate
in the classroom discussions.
TLA2. Assigned Individual Homework
Selected questions and problems will be assigned after each chapter as
homework which will not be collected for grading. However, students are
strongly urged to practice these questions and problems in order to do well in
this course.
TLA3. Group Assignments
Students are asked to form groups with 3 to 4 members to complete six
assignments outside the classroom. This gives students the opportunities to
apply and integrate the knowledge learned and to demonstrate the problem
3

solving skills. By engaging in this exercise, students will not only learn to work
as a team but also develop their team spirit and communication skills that are
useful in their future work.
TLA4. Consultation
Instructor offers consultation after class to address students questions. Students
are encouraged to discuss questions with the instructor either in person or by
email.
Course Assessment Tasks
Course grade will be based on class participation, group assignments, midterm
examination, and final examination as follows:
AT1
Individual Class Participation
AT2
Group Assignments
AT3
Midterm Examination
AT4

Final Examination
Total

5%
25%
20%
50%
100%

AT1. Class Attendance and Participation

Attendance will be taken for all lectures. To ensure that students gain the
maximum benefit from the classes, students are required to attend at least
two-third of classes for each course, otherwise they may be treated as having
failed the whole course. If students are 30 minutes late or leave early without
consulting the instructor beforehand, they will be regarded as not having
attended the class. Students are encouraged to actively participate in all class
activities and discussions. It is required that every student brings his / her
calculator to class for in-class-exercise. Individual class participation will be
evaluated and account for 5% of students total grade.
AT2. Group Assignments
Six group assignments will be given and each group will submit one copy for
grading. Students will have the opportunity at the end of the course to evaluate
their team members so that the assignment grade will be adjusted according to
the students input. For this reason, students are required to stay in the same
group for the whole course. The assignments will evaluate students
performance in acquisition and internalization of knowledge and techniques
delivered in the course. They also serve to evaluate students ability in applying
and integrating the relevant knowledge in the finance profession.

AT3 and AT4 Examinations

Midterm and final examinations will be given during the examination weeks as
set out in the college calendar. Both examinations are closed-book and
closed-notes and last for two hours and fifteen minutes. Formulas will be
provided as appropriate. The examinations are designed to assess students
performance in acquisition, internalization, and application of knowledge and
techniques in the subject of International Finance. No make-up examination will
be given.
Alignment of Course Intended Learning Outcomes, Teaching and Learning
Activities and Assessment Tasks
Course Intended Learning Teaching and Learning Activities
Outcomes

Assessment Tasks

CILO1

TLA1, TLA2, TLA3, TLA4

AT1, AT2, AT3, AT4

CILO2

TLA1, TLA2, TLA3, TLA4

AT1, AT2, AT3, AT4

CILO3

TLA1, TLA2, TLA3, TLA4

AT1, AT2, AT3, AT4

CILO4

TLA1, TLA2, TLA3, TLA4

AT1, AT2, AT3, AT4

Grading Criteria
Grade

Performance

Indicates that the student has an outstanding performance and a thorough

mastery of the subject matter

Indicates that the student has a good performance and is competent in

knowledge of the course

Indicates that the student has a satisfactory performance and an acceptable

level of knowledge of the course

Indicates that the student has a marginally satisfactory performance and an

acceptable level of the knowledge of the course

Indicates that the student has failed the course. A student receiving grade
F in a course must retake that course

III.
COURSE POLICIES
Class Conduct
Students are required to attend all classes on time. If students are 30 minutes late or
more, they will be regarded as not having attended the class. In case you have to leave
the class early, please inform the instructor before the class begins. Please sit near the
5

door and exit quietly. If you fail to inform the instructor before you leave, no credit
will be given for your class attendance.
Respect your instructor and your fellow students. Keep silent and switch off your
mobile phone unless necessary. Be considerate to others.
Academic Dishonesty
The college regulations on academic dishonesty will be strictly enforced. Please check
the student handbook on plagiarism.
Academic dishonesty is any act misrepresents a persons own academic work or that
compromises the academic work of another. It includes (but not limited) cheating on
assignments or examinations; plagiarizing, i.e., representing someone elses ideas as if
they are ones own; sabotaging anothers work.
If you are caught in an act of academic dishonesty or misconduct, you will receive an
F grade for the subject. The relevant Board of Examiners may impose other penalty
in relation to the seriousness of the offense.
IV.

COURSE OUTLINE

Lecture Topics
Schedule
1

The

Reading

Course

Intended

Learning Outcomes
International

Monetary Chapter 3

CILO1, CILO2

System
2

The Balance of Payments

Chapter 4

CILO1, CILO2

The Foreign Exchange Markets

Chapter 6

CILO1, CILO2,
CILO4

International Parity Conditions

Chapter 7

CILO1, CILO2

Midterm Examination: October 22, 2015

5

Foreign Currency Derivatives and Chapter 8

Swaps

CILO1, CILO2,
CILO4

Transaction
and
Translation Chapter 10
Exposures
Global Cost and Availability of Chapter 12
Capital

CILO1, CILO2,
CILO3

Sourcing
Globally

CILO1, CILO2,
CILO3, CILO4

7
8

Equity

and

Debt Chapter 13

Final Examination: December 10, 2015

CILO1, CILO2,
CILO3, CILO4