Course Title: International Finance

Semester: III-A Class: MBA 2021

Instructor: Tanveer Shehzad Email: Tanveer.shehzad@lums.edu.pk

Room # SDSB Room # 4-0026 Telephone: 03314401708 (What’s App

only)
Office Hours: By appointment Secretary/TA Arfa Hamad
arfa.hamad@lums.edu.pk

COURSE OVERVIEW
This course focuses on the broad managerial issues of corporate finance, investments and risk
management in the international context. In order to fully develop an appreciation and understanding
of the international context, the course also covers the working of International Financial Markets and
the historical growth and importance of International Financial Centers. Upon successful completion
of the course, students should be fully aware of the main issues involved in making international
financial decisions. They should also have developed the necessary skills and techniques required in
making these decisions - in international financing, in international investment and in exchange risk
management. The course will cover the topics of Exchanges Rates, Global Balance of Payments,
International Financial Centers, International Financial Markets, International Capital Budgeting,
International Investments and International Trade Finance.

LEARNING OBJECTIVES

1. Understanding global corporate finance issues and international capital budgeting

2. Ascertaining the advantages and risks in international investment portfolio diversification.
3. Measuring and managing foreign exchange risk.
4. Understanding the mechanics of international trade finance
5. Understanding the working of international financial markets and major financial instruments.

MBA PROGRAM LEARNING GOALS & OBJECTIVES

1. Leadership and teamwork: Students will be able to assume leadership roles, perform
leadership tasks responsibly, and work effectively in teams.
2. Functional, integrative and strategic abilities: Students will demonstrate understanding of
the functional and strategic aspects of business and management, be able to integrate across
functional areas, and develop feasible strategies and action plans.
3. Critical thinking and decision making: Students will be able to identify key problems,
collect and use information critically, and generate viable alternatives and solutions.
4. Global perspective and flexibility: Students will demonstrate understanding of global and
multi-cultural perspectives within the local context and be able to work effectively in multi-
cultural settings.
5. Social, ethical, economic and environmental responsibility: Students will be able to
understand the broader ramifications of their decisions and assess the impact of economic,
ethical, environmental factors on the policies, strategies and operations of the organization.
6. Effective communication: Students will be able to communicate clearly and persuasively in
writing and verbally, in ways appropriate for a variety of objectives and audiences.
7. Entrepreneurialism and innovativeness: Students will be able to create, identify, assess,
shape and act on opportunities in a variety of contexts and organizations.
8. Managing pressures, complexities and uncertainties: Students will be able to manage
pressures and resource constraints, and think, decide and act in complex and ambiguous
situations.
MBA PROGRAM LEARNING GOALS & OBJECTIVES

Indicate below how the course learning objectives specifically relate to any program
learning goals and objectives.

Program Learning Goals and Course Learning Objectives Course Assessment Item
Objectives

Goal 1 – Leadership and

Teamwork

Goal 2 – Functional, integrative CLO # 1-5 CP, Project, Assignment, Quiz

and strategic abilities

Goal 3 – Critical Thinking – CLO # 1-5 CP, Project, Assignment

Decision making capabilities

Goal 4 – Global perspective

and flexibility

Goal 5 – Social, Ethical,

Economical and Environmental
Responsibility

Goal 6 – Communication CLO # 1-5 CP, Project

competency

Goal 7 – Entrepreneurialism
and innovativeness

Goal 8 – Managing pressures,

complexities and Uncertainties

COURSE ASSESSMENT/GRADES
The course grade is based on the following criteria:

Basis of Evaluation % of Total

Class Participation 30
Quizzes 10
Assignments 30
Project 30
Total 100

Class Participation: You are expected to read the assigned materials and prepare for each class
session ahead in order to contribute intelligently to class discussions. Your class participation grade
depends on your involvement in class discussions and the quality of your input. Criteria for
different scores is as follows:

Score Description
0 Did not participate in class; any disciplinary violation
1 Participated but described a case/general fact only
2 Gave an answer which moved forward the ongoing
discussion and timeliness of the argument was evident.
3 Building upon the discussion of previous student, gave
COURSE ASSESSMENT/GRADES
a new direction to the class/ brought a point which was
missing in the discussion.
4 As above but point was rarely acknowledged by
students or was new for instructor also.

Quizzes: Two announced quizzes are planned for this course.

Project: Details of the project will be provided later.

Assignments: A total of 2 assignments are planned for the course. One of the assignments will be a
group assignment and the other an individual assignment.

CLASS-MANAGEMENT POLICY

Please consult MBA handbook for attendance, timeliness and norms of professional conduct.

COURSE REQUIREMENTS

It is highly recommended that students should regularly read up on international news and
developments in the financial sector. Suggestions: Economist, Financial Times, Bloomberg, Business
Recorder etc.
Another useful and enjoyable activity is to discuss these issues among course mates. Especially
important issues can also be brought into class and, time permitting, discussed there.

RECOMMENDATION FOR FURTHER EDUCATION

RECOMMENDED TEXTBOOKS/SUPPLEMENTARY READINGS (if Applicable)

Books:

 Ross, Westerfield, Jaffe and Kakani, Corporate Finance, 10th Edition, McGraw Hill, (RWJ)
 Reilly, Frank and Brown, K., Analysis of Investments & Management of Portfolios, 10 th Edition,
Thomson South-Western (RB),
REQUIREMENTS (FOR PCO OFFICE)
Midterm Exam: No If yes please specify the format ( e.g. if
closed book/closed notes or open
book/open notes etc.)

Final Exam: No If yes please specify the format ( e.g. if

closed book/closed notes or open
book/open notes etc.)

Double Session: No If yes then which session(s):

Joint Session (combined of two No If yes then which session(s):

sections):

Simulation: No If yes, then which session(s):

Type of simulations (Harvard etc.)
must also be mentioned.

Video Recording: No If yes, then which session(s):

IT Lab sessions No If yes, then which session(s):

Additional session or review session No If yes, then after which session(s):

Course Cap (applicable for elective Yes If yes, then what should be the cap?
courses) 30/35

Standard Cap in an Elective Course is

50

Any other requirement (e.g. No If yes, what requirement:

laptop/computer etc.):
And in which session(s):

OTHER REQUIREMENTS
Co-teaching a course: If you are co-teaching this course with any other faculty member, please
mention the session number(s) being taught by him/her and yourself.

Session No. Module and Topic:
Session 1 Foundations of
International Finance - I:
Neoclassical Finance
Foundations of
International Finance - II:
Session 2
Global Equity Markets and
Analysis
Foundations of
International Finance – III:
Session 3 Fixed Income Markets
Around the World
Foundations of
International Finance – IV:
Session 4 Introduction to Derivatives
Products and Markets
Around the World
Foundations of
Session 5 International Finance – V:
FinTech
International Portfolio
Session 6
Diversification - I
READING LEARNING ASSIGNMENT
TITLE OF CASE
MATERIAL OBJECTIVES QUESTIONS
Introduction of fundamental
finance theories and
Neoclassical Finance
concepts and modern
and Behavioral
challenges faced by
Challenge
neoclassicalism by
behavioralists
An overview of stock
Company Analysis and
valuation and its alteration
Stock Valuation (RB Ch
for international markets
14)
1. Bond Fundamentals
(RB Ch 17)
2. The Analysis and An overview of global bonds
Valuation of Bonds markets and products
(RB Ch 18)
NA A refresher on derivative
products and international
derivative markets versatility
An introduction to FinTech
Karandaaz Fintech language, products and
A Global FinTech
Disrupt Challenge – The challenges for modern 1.
Overview
Way Forward finance
Innocents Abroad:
Currencies and Challenges faced in
International Stock investment and portfolio
Returns making in the international
context.
 Innocents Abroad: Challenges faced in
International Portfolio Currencies and investment and portfolio
Session 7
Diversification - II International Stock making in the international
Returns context.
Investment in Global Gold in 2011: Bubble or Introduction of commodities
Session 8 trading and markets
Commodities Safe Heaven?

Valuing a Cross Border Issues faced in valuing

Session 9 Foreign Investment LBO: Bidding on the international companies
Decisions Yell Group

Tokyo Disneyland And

the Disneysea Park:
Corporate Governance
and Differences in Issues faced in valuing
Session10 Foreign Investment
Capital Budgeting international companies
Decisions
Concepts and Methods
Between American And
Japanese Companies

Tokyo Disneyland And

the Disneysea Park:
Corporate Governance
and Differences in Issues faced in valuing
Session 11 Foreign Investment
Capital Budgeting international companies
Decisions
Concepts and Methods
Between American And
Japanese Companies

Exchange Rate Policy at Comparative analysis of

Session 12 Exchange Rate Monetary Authority of exchange rate system and
Management Singapore management in Singapore.

Session 13 Foreign Exchange Hedging Foreign Exchange Introduction of hedging

Decisions Hedging Strategies at strategies to minimize
General Motors:
 Transactional and
exchange rate exposure
Translational Exposures

Session 14 Project Presentations