State University of Bangladesh

School of Business
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Course Outline:
Course Meets:
FIN-453: International Financial Management
Monday
2:20-3:40 (Room-204)
th
Spring 2014, BBA-26 Batch
Thursday
2:20-3:40 (Room-204)
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Course Objectives:
The course will focus on financial management in an international context. It begins with an overview of
the macroeconomic environment, including a review of parity relationships, exchange rate systems and
financial markets and instruments. Aspects of international financial management addressed in the course
include foreign exchange exposure measurement and management, financing the global firm, foreign
investment decisions, and the management of multinational fund flows and transactions.

Instructional Approach:
A combination of lecture, technical problem solving and classroom discussion will be used. Students are
expected to have completed the required readings and attempted any assigned questions prior to class. If
time is limited, be advised that even brief preparation for class is extremely beneficial.

Attendance:
Attendance at class is mandatory and highly recommended! Students must attend the lecture in which
they are registered unless a prior request has been approved by the instructor. Please make any such
request by email, including the reason for it, at least 24 hours prior to the lecture you wish to attend.

Course Contents:
Class
Lecture-1,2

Lecture-3,4,5

Lecture-6,7

Lecture-8,
9,10
Lecture-11,
12, 13
Lecture-14,

Discussion Topics
An Overview of Multinational Financial Management: Multinational
Company (MNC), Reasons behind International Business. How Firms
Engage in International Business, Valuation Model for an MNC.
International Flow of Funds: Balance of Payment, International Trade
Flows, International Trade Issues, Factors Affecting International Trade
Flows, Correcting a Balance-of-Trade Deficit, International Capital
Flow, Agencies that Facilitate International Flows
International Financial Markets: Foreign Exchange Market,
International Money Market, International Credit, Bond Markets and
Stock Markets
Exchange Rate Determination: Measuring Exchange Rate Movement,
: Exchange Rate Equilibrium, Factors that Influence Exchange Rates
International Arbitrage and Interest Rate Parity: Purchase Power
Parity (PPP), International Fisher Effect (IFE)
Measuring Exposure to Exchange Rate Fluctuation: Transaction

Referenc
e
Ch-01
(Madura)
Ch-02
(Madura)

Ch-03
(Madura)
Ch-04
(Madura)
Ch-7 & 8
(Madura)
Ch-10

15
Lecture-16,
17
Lecture-18,
19
Lecture-20,
21, 22

Exposure, Economic Exposure, Translation Exposure

Direct Foreign Investment: Motives for DFI, Benefits of International
Diversification, Host Government view of DFI
Multinational Capital Budgeting: Subsidiary Vs Parent Perspective,
Input for Multinational Capital Budgeting, Factors to Consider in
Multinational Capital Budgeting
Multinational Cost of Capital and Capital Structure: Cost of Capital
Vs MNC, Capital Structure decision in MNC, Local Vs Global Target
Capital Structure.

(Madura)
Ch-13
(Madura)
Ch-14
(Madura)
Ch-17
(Madura)

Related Resources:
Text Book: International Financial Management by Jeff Madura (Latest Edition)
Reference Book: International Financial Management by Sharan & Vyuptakesh (5 th
Edition)

Course Instructor Details:

Muhammed Zakir Hossain
Assistant Professor,
MSc in Business and Economics (Sweden),
BBA, MBA (University of Dhaka)
School of Business, State University of Bangladesh
E-mail: zakir_sub2013@yahoo.com, Cell: +8801923799056