| Course Objectives: |
The course aims at providing a solid understanding of international finance within a complex capital markets context. It emphasizes the managerial perspective of finance for a multinational corporation (MNC). Based on macroeconomic and institutional foundations, advanced techniques and instruments for managing the foreign exchange exposure and risk of MNCs are developed. The course further addresses international banking and money
markets. Students will be prepared to, and provided with the skills required for, international investment management, cross-border acquisitions, international capital budgeting, and multinational cash management and trade financing.
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| Course Content: |
The economies of the world are increasingly interconnected. While 50 years ago, the primary economic links between countries were in the exchanges of goods, today financial flows are far consequential than trade. Trade finance, investment, loans, and foreign exchange transactions constitute a multi-trillion euro business annually. While these flows have helped fuel economic growth around the world, they also leave countries much more exposed to contagion from economic difficulties elsewhere. This course aims at providing a solid understanding of international economics and finance. We will explore balance of payments analysis, exchange rates and their determination, and financial globalization. We will look at the challenges and opportunities presented by single currency areas like the Euro area. We will discuss the downsides of financial globalization and examine how financial crises are transmitted internationally. Finally, we will explore how multinational firms use financial instruments to finance their operations and reduce risks. |
Course Learning Outcomes (CLOs) are those describing the knowledge, skills and competencies that students are expected to achieve upon successful completion of the course. In this context, Course Learning Outcomes defined for this course unit are as follows:
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| Knowledge
(Described as Theoritical and/or Factual Knowledge.)
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1) Gains knowledge about the development of the international monetary system.
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2) Gains knowledge and interprets the Balance of Payments Statement.
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3) Knows foreign exchange markets and international parity conditions.
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4) Knowledgeable about foreign exchange derivatives (Futures, Options) as well as interest rate risk and swaps.
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5) Knows the risks of foreign exchange exposure (Transaction, Translation and Operating) and can make suggestions about what can be done to manage these risks.
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6) Compares the cost of capital for multinational firms to domestic firms.
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7) He/she is knowledgeable about the key documents in international trade finance, programs of government institutions related to export financing, alternatives of trade finance and forfaiting.
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8) Discusses the structural choices for foreign market entry, political risks and its financial impacts.
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| Skills
(Describe as Cognitive and/or Practical Skills.)
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| Competences
(Described as "Ability of the learner to apply knowledge and skills autonomously with responsibility", "Learning to learn"," Communication and social" and "Field specific" competences.)
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| Week |
Subject |
Materials Sharing * |
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Related Preparation |
Further Study |
| 1) |
Multinational Financial Management: Opportunities and Challenges |
Textbook
Materyal
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- -
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| 2) |
The International Monetary System |
Textbook
Materyal
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- -
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| 3) |
The Balance of Payments |
Textbook
Materyal
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- -
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| 4) |
Financial Goals and Corporate Governance |
Textbook
Materyal
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- -
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| 5) |
Foreign Exchange Market and International Parity Conditions |
Textbook
Materyal
|
- -
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| 6) |
Foreign Currency Derivatives: Futures & Options |
Textbook
Materyal
|
- -
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| 7) |
Interest Rate Risk and Swaps |
Textbook
Materyal
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- -
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| 8) |
Midterm |
-
Materyal
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- -
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| 9) |
Transaction Exposure |
Textbook
Materyal
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- -
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| 10) |
Translation Exposure |
Textbook
Materyal
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- -
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| 11) |
Operating Exposure (Competitive or Strategic Exposure) |
Textbook
Materyal
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- -
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| 12) |
Global Cost and Availability of Capital, and Funding the Multinational Firm |
Textbook
Materyal
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- -
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| 13) |
International Trade Finance
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Textbook
Materyal
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- -
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| 14) |
Foreign Direct Investment and Political Risk |
Textbook
Materyal
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- -
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| 15) |
Multinational Capital Budgeting and Cross-Border Acqusitions |
Textbook
Materyal
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- -
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(KPLOs and SPLOs are the abbreviations for Key & Sub- Programme Learning Outcomes, respectively. )
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Programme Learning Outcomes |
Contribution Level (from 1 to 5) |
1) |
Learns and uses the basic information, concepts and theories required in the field of international trade. |
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1.1 Apart from subjects such as finance, business, economics, management-organization, marketing, sales management, human resources management, which constitute the main subjects of business management, it is also necessary for foreign trade, logistics, supply chain management, customs, insurance and risk management. have the necessary basic information. |
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1.2 Except the core subjects of the business, students have knowledge about leadership, behavioral sciences, communication and entrepreneurship; in the field of service, mathematics, statistics, law, operations research, information processing and management information systems. |
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2) |
Use information and communication technologies and business applications and international trade in information systems effectively. |
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2.1 Students will be able to benefit from contemporary information technologies and tools in business life, are willing to learn continuously, are open to innovations and can easily adapt to changes. |
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3) |
Can develop effective management strategies using appropriate theory and methods; plan, co-ordinate, implement and control management processes |
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3.1 Improves analytical thinking, problem solving in organizational issues, time management, self-discipline and communication skills. |
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3.2 Uses problem solving, time management, self-discipline and effective communication skills at work. |
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4) |
Applies the theoretical knowledge in business life during a semester. |
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4.1 Experiences all processes in business life. |
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4.2 Takes part in activities related to the field of education in a business operating in the field. |
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4.3 Questions the application with theoretical knowledge. |
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4.4 Compiles the knowledge and experience gained in the field. |
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5) |
S/he acquires the competencies that develop by the expectations of business world and the society defined as the institutional outcomes of our university on the advanced level in relation with his/her field. |
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5.1 Acquires the analyzing solving the problems and managing the conflicts. |
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5.2 Participates as a team member and takes responsibility in the environments that require the solving of the conflicts and acts as a leader when necessary. |
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5.3 Has awareness for ethical and social responsivity. |
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5.4 By supporting the learnt courses with quantitative and qualitative data; and by using verbal and visual communication means, s/he transfers them to the groups within and outside his/her group in a systematical and effective way. |
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5.5 Evaluates the norms and standards present in the works in which s/he takes responsibility in a critical point of view. |
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5.6 Develops strategical, innovative and entrepreneurial ideas. |
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5.7 Acquires competence of managing the change. |
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5.8 Shows development personally and socially with and awareness for lifelong learning. |
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5.9 Follows advanced technologies and developments about digital transformation. |
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5.10 Has cultural awareness and s/he transfers this to the groups within and outside his/her field. |
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5.11 Has awareness about citizenship competency. |
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5.12 Acquires communication in a Foreign Language (English) competence defined on the level of at least B1 in European Language Portfolio. (In programs whose medium of instruction is English, on the level of B2/B2+). |
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| WORKLOAD OF TEACHING & LEARNING ACTIVITIES |
| Teaching & Learning Activities |
# of Activities per semester |
Duration (hour) |
Total Workload |
| Course |
14 |
3 |
42 |
| Laboratory |
0 |
0 |
0 |
| Application |
0 |
0 |
0 |
| Special Course Internship (Work Placement) |
0 |
0 |
0 |
| Field Work |
0 |
0 |
0 |
| Study Hours Out of Class |
0 |
0 |
0 |
| Presentations / Seminar |
0 |
0 |
0 |
| Project |
0 |
0 |
0 |
| Homework Assignments |
0 |
0 |
0 |
| Total Workload of Teaching & Learning Activities |
- |
- |
42 |
| WORKLOAD OF ASSESMENT & EVALUATION ACTIVITIES |
| Assesment & Evaluation Activities |
# of Activities per semester |
Duration (hour) |
Total Workload |
| Quizzes |
2 |
16 |
32 |
| Midterms |
1 |
15 |
15 |
| Semester Final Exam |
1 |
30 |
30 |
| Total Workload of Assesment & Evaluation Activities |
- |
- |
77 |
| TOTAL WORKLOAD (Teaching & Learning + Assesment & Evaluation Activities) |
119 |
| ECTS CREDITS OF THE COURSE (Total Workload/25.5 h) |
5 |
ECTS Information Package / Course Catalogue