SYLLABUS
FACULTY ECONOMIC AND BUSINESS
INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE
(IPIEF)
1 Name of Course / Module
2 Course Code
3 Credit Value
4 Objective
5 Learning Outcomes
6 Synopsis
International Finance
EI8441
3
By the end of this course, students are expected to have
attained proficiency in analyzing the International
Monetary System and its recent developments.
- Understanding the Foreign exchange market and its
roles in international finance and trade work.
- Understanding how to approach the International risk
management, including the theoretical arguments for
and against hedging foreign exchange and interest rate
risk and the use of financial instruments such as
options on exchange rates, financial futures and
currency swaps;
- Understanding the Corporate Finance and Investments
in International Setting.
- Research methodologies employed in international
finance
- Analyzing Islamic perspectives in International
finance
The goal of this course is to introduce students to major
topics in international finance and provide a simple
analytical framework for addressing issues in international
monetary economics. After a brief overview of balance of
payment accounting we will develop a simple model to
understand the major relationships in open-economy
macroeconomics. The tools developed in the earlier
lectures will be used to study the implications of different
policies such as fixed vs. floating exchange rates and
devaluations. The second part of the course will cover
major issues in international macroeconomic policy such
as the international monetary system, optimum currency

7 References
8 Lecturer
9 Correspondence
10 Academic Evaluation
areas and global capital markets. At the end of the course,
students should have a greater appreciation of
international finance and be able to access the economic
content of news articles on international finance from
sources such as Financial Times and The Economist.
Financial Management Theory and Practice (12th
edition)
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Publisher: South-Western Cengage learning;
International Financial Management
Author: Jeff Madura
Publisher: Thomson, 2004
International Money and Finance
Authors: C. Paul Hallwood and Ronald MacDonald
Publishers: Blackwell Oxford UK and Cambridge USA
Multinational Financial Management (8th edition)
Authors: Alan C. Shapiro
Publisher: Wiley Asia Student Edition, 2006
Susilo Nur Aji Cokro Darsono, SE., MRDM
Lecturer Room, E4 Building 2nd Floor
E-mail: susilonuraji@gmail.com / susilonuraji@umy.ac.id
WA: 08565022013
Test Competency I (20%), and II (20%)
Presentation (20%); Homework (5%); Quiz in Class
(10%); Attendance and active participations (5%); Paper
(20%)
Total 100%

COURSE OUTLINE
Introduction to International Finance: Introduction to the Topic in
Company Context
- Size and Scope of International Business
1 - 3th meeting
- Size and Scope of Foreign Exchange Markets
- How Foreign Exchange Affects International Business
- Why the Company Needs Expertise in International Fianance
 Factors Affecting Exchange Rate Movements
- The Problem of Foreign Exchange Volatilities
- Getting Started in Trading Currencies
- Principles of Forecasting
- Currency Crisis
3- 5th meeting
- Interest rate-IRP
- Inflation-PPP
- Economic Growth
- Government Actions
- Riba’ and Monetary in Islam
Managing Foreign Exchange Risks
- Speculators
- Adjusting Prices
- Dealing with Single Currency
- Leads and Lags
- Forward Contracts
6-7th meeting
- Futures
- Options
- Swaps
- Hedging Principles
- Hedging in Gold Dinar
- Sukuk
9th meeting Test competency I
International Debt
- The debt problem
- Growth of International Debt
- Debts and Economic Growth
10-12th meeting - Capital Flight
- Government and national foreign indebtedness
- The lender trap
- International debt facilities
- Debt in Islam
Financing Imports and Exports
- Import-export Opportunity
- Trade terms and Resources
- Letters of Credit and Payment Terms
13-15th meeting - OPIC
- Terms and Resources for Trade
- Method of short-term financing
- Counter Trade
- Islamic L/C
The Future of International Finance
- Japan
16-17th meeting
- Islam—Bahrain, Saudi Arabia;
- China, Indonesia and India
18th meeting Test competency II
Rules of class meeting:

1. Attendance
– The minimum attendance based on university policy
– There will be one chance to have make up competency test
– Make up class will be arranged based on collective decision
– You have to prepare your GADGET and/or LAPTOP to connect internet. There
will be Quiz in some of meetings
– When you are late more than 30 minutes, please help me to close the door from
outside
– When i am late more than 30 minutes, just feel free to leave me.
2. Grade Disputes
– If you want to dispute your grading, just feel free to asked me. But when the
faculty has already published it, two weeks later, you could not asked me to make
consideration for remarks you.

3. Grading System

Grading and Weight Interval (%)

A A≥80
AB 75≤AB<80
B 65≤B<75
BC 60≤BC<65
C 50≤C<60
D 35≤D<50
E <35