Course Description

This course covers two key areas for International Business: Corporate Finance and Accounting for
Decision Making.
1) Corporate Finance: The scope and the content of international business have been evolving very fast
the last twenty years: deregulation of markets, product innovations, technological changes. Capital
markets become more and more integrated and understanding of international business is nowadays
necessary to any student of international matters or to any manager in multinational firms or
institutions.
A key factor in international business is the need to operate in a multi‐currency environment. The
course looks at the way in which the foreign exchange markets have developed, and how they operate.
The determination of spot and forward rates is explained, and students are taught to calculate interestparity
forward prices and to look for arbitrage opportunities. The different concepts of foreign exchange
exposure are discussed, which then leads to a detailed study of hedging operations, using both
traditional methods and the derivative instruments introduced in “Financial Markets and Institutions”.
2) Accounting for Decision Making: In the second part of the course, a set of readings from the
textbook, assigned problems, and case discussion questions will be covered, which related to
accounting. The assigned problems illustrate the managerial accounting principles being covered each
week; the cases illustrate how these principles are used when addressing a management problem.

 

Course Objectives

The course will allow students to understand what is called international finance. It will also allow
students to be able to take their own decisions if they need them, when they will work in finance
departments of international companies. It also includes the presentation of statistics that will allow
students to understand recent developments of the world finance.
The course further aims to transmit a comprehensive, graduate level exploration of managerial
accounting. Managers need to understand the ways in which accounting information can be used to
guide decision‐making. Attention is given to operating leverage decisions, and their impact upon
“breakeven” activity levels. This in turn leads to decisions about pricing and production volumes, about
“make‐or‐buy” decisions and about outsourcing. A final module considers the role of accounting data in
risk management and in the formulation of corporate strategy.

 

Learning Goals

At the end of this course, students will be able to:

• Explain with the aid of statistics and/or calculations how recent developments in the world financial
  system affect individual industries, businesses and markets.
• Understand the International Monetary System, spot market and the forward market.
• Address the management of transaction exposure, the international bond market and equity
  Markets, as well as currency swaps.
• Provide effective cost management tools for projects
• Plan, control and manage cost issues
• Use budgeting techniques and principles
• Implement methods of accountant information evaluation
• Implement tools of decision making

 

 

Bibliography

Textbooks

• Eun C, Resnick B, International Financial Management, McGraw‐Hill, 6th edition, 2012. ISBN‐13
  9780078034657
• Managerial Accounting, 5th ed., Karen W. Braun, Wendy M. Tietz, Pearson, 2018

 

Additional Recommended Readings

Grading System

Grade	Percentage	Quality	Credit Points
A	93 ‐ 100	Outstanding	4
A-	90 ‐ 92		3.75
B+	87 ‐ 89		3.5
B	83 ‐ 86	Good	3
B-	80 ‐ 82		2.75
C+	77 ‐ 79	Satisfactory	2.5
C	70 ‐ 76		2
F	0 ‐ 69	Failure	0

 

Course Outline

Session 1
Description	The International Monetary System and Foreign Exchange Markets. This Module examines the evolution of the international monetary system and the changes that took place since its foundation (1945). Further, it explains the function and the structure of foreign exchange market.
To read	Chapters 2, 3, 5
To prepare	 Discussion Questions ‐ DQ1  Writing assignment # 1  Test
Session 2
Description	International Banking and Money Market. Module differentiates between international bank and domestic bank operations and examines the institutional differences of various types of international banking offices. International banks and their clients constitute the Eurocurrency market and form the core of the international money market..
To read	Chapter 11
To prepare	- Discussion Questions – DQ2 - Writing Assignment # 2 ‐ Test
Session 3
Description	International Bond Market. Module distinguishes between foreign bonds and Eurobonds, which together make up the international bond market. The advantages of sourcing funds from the international bond market as opposed to raising funds domestically are discussed. A discussion of the major types of international bonds is included in the chapter.
To read	Chapter 12
To prepare	 Discussion Questions – DQ3  Writing Assignment # 3  Test
Session 4
Description	International Equity Markets. This Module, logically focused on the other international equity included in the balance sheet, stocks.
To read	Chapters 13
To prepare	-Discussion Questions – DQ4 -Writing Assignment # 4 -Test
Session 5
Description	Mid‐Term Exam
To read	none
To prepare	Exam
Session 6
Description	Introduction to Management Accounting. Building Blocks of Managerial Accounting
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 7
Description	Job Costing, Activity‐Based Costing, Lean Operations, and Costs of Quality
To read	Read chapters 1 and 2 of textbook
To prepare	Questions to professor
Session 8
Description	Process Costing, Cost Behavior
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 9
Description	Cost‐Volume‐Profit Analysis. Relevant Costs for Short‐Term Decisions
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 10
Description	The Master Budget. Performance Evaluation
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 11
Description	Standard Costs and Variances. Capital Investment Decisions and the Time Value of Money
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 12
Description	Statement of Cash Flows, Financial Statement Analysis
To read	Read PowerPoint presentation
To prepare	Questions to professor
Session 13
Description	Final Exam
To read	none
To prepare	Exam

Assessment

Discussion Questions / Participation
Percent of the final grade: 20%
Written Assignments
Percent of the final grade: 20%
Midterm Exam
Percent of the final grade: 30%
Final Exam
Percent of the final grade: 30%

 

Academic integrity

Students are required to read UBIS Rules and Regulations on plagiarism and to acknowledge the
multiple forms that plagiarism takes along with the sanctions that can go as far as school exclusion.
Every infraction will be reported to the disciplinary board which will analyse the situation and
circumstances, and decide on the sanction to apply.

Academic dishonesty may take the forms of: 1. Plagiarism, i.e. copying the ideas or work of another
person without citing the source. This includes books, extracts of articles, tables, diagrams and material
from internet or other electronic sources. 2. Submission of work more than once, including work
submitted at a prior institution, unless prior approval has been obtained. 3. Cheating on an examination.
4. Submission of work that is not your own without citation. 5. Adding your name to work to which you
have not contributed or allowing another student to do the same. 6. Unauthorized or inappropriate use
of computers, calculators and other forms of technology in coursework, assignments or examinations.
All these can lead to disciplinary sanction.

Please refer to your student handbook for full details.