international financial management - wiwi.uni-siegen.de · international financial management...
TRANSCRIPT
1 International Financial Management | The University of Tulsa
International Financial Management
Syllabus
Siegen, November 17-27, 2018 J. Markham Collins, PhD
All the readings except for those in the primary textbook, Eun, Cheol S., Resnick, Bruce G.
(2015). International Financial Management, 7th
Ed. McGraw-Hill (or Eun, Cheol S., Resnick,
Bruce G. [2012]. International Financial Management, 6th Ed. McGraw-Hill,)and the article by
Michael Porter can be found at this site:
http://www.box.com/shared/e46u22z8ud
There are assignments listed with the course and these should be done to discuss in class.
CASES:
Harvard Business Cases and the Porter article can be purchased through Harvard Business Online:
https://hbsp.harvard.edu/import/580323
The name of our course in Harvard is Int Fin Mgt Siegen 2018-1.
Just go to that link, register, and purchase the on-line course pack. It costs about € 11.00. You need something from this site before the class starts.
I. Introduction to Trade, Global Investment, the International Monetary
System Article:
Porter, “Competitive Advantage of Nations,”from Harvard.Read this prior to the start of
class.
Book Chapters:
Appleyard et al. (2010) – Chapter 20, pp. 476-506
Eun & Resnick (2015) – Chapter 2, pp. 27-61
Or Eun & Resnick (2012) – Chapter 2, pp. 29-63
Power Point lessons: Part 1
II. Exchange Rates and Parity Conditions Book Chapters:
Appleyard, Chapter 20, pp. 476-506 & Chapter 28, pp. 713-738
Shapiro (2010). Chapter 2, pp. 57-98
Eun & Resnick (2015) – Chapter 5, pp. 112-139 & Chapter 6, pp. 140-172
Or Eun & Resnick (2012) – Chapter 5, pp. 112-138& Chapter 6, pp. 139-171
Power Point lessons: Part 2 through 4
2 International Financial Management | The University of Tulsa
III. The Optimal Currency Area and the Euro
Book Chapters:
Shapiro, Chapter 3, pp. 99-134
Appleyard, Chapter 29, pp. 739-774
Readings: Dr. Collins will have lecture notes to present on all these readings. Students should read them, preferably prior to those presentations.
Mundell (1961)
Kenen (1966)
McKinnon (1963)
Mundell (1998)
Mundell (1999)
Vasiliauskaitė, et al. (2007)
Kotil et al. (2009)
Zhao and Kim (2009)
Mundell (2002)
Power Point Lessons: Part 5 and 6.
IV. Managing Translation and Transaction Currency Exposure
Book Chapters:
Shapiro, Chapter 10, pp.354-402
Eun & Resnick (2015), Chapter 8, pp. 198-224& Chapter 10, pp. 245-263
Or Eun & Resnick (2012), Chapter 8, pp. 197-226& Chapter 10, pp. 248-265
Power Point Lessons: Part 7
Readings:Dr. Collins will have lecture notes to present on all these readings. Students should read them, preferably prior to those presentations.
Goldberg, S., & Drogt, E. (2008)
Collins (2010)
V. Economic Exposure
Book Chapters:
Shapiro, Chapter 11, pp.403-449
Eun & Resnick (2015), Chapter 9, pp. 225-244
Eun & Resnick (2012), Chapter 9, pp. 227-247
Readings:
3 International Financial Management | The University of Tulsa
Collins (2010)
Power Point Lessons: Part 8 Case Studies:In the U.S. educational system, cases are discussed. Students need to read and do analysis
prior to the class discussion.
Lufthansa: To Hedge or Not to Hedge
McDonalds Corporation’s UK Pound Exposure
Porsche Exposed
VI. Foreign Direct investment
Book Chapters:
Eun & Resnick (2015), Chapter 16, pp. 404-430
Or Eun & Resnick (2012), Chapter 16, pp. 408-434
Readings:
Shapiro (1985)
Power Point Lessons: Part 9
Listed References: These are only here for students who become interested in these topics and
want to add to their knowledge or write a thesis in this area. We will not cover these references in
the course.
Appleyard, D., Field, A., Cobb, S. (2009). International Economics. McGraw-Hill
Choi, J., & Jiang, C. (2009). Does multinationality matter? Implications of operational hedging for the
exchange risk exposure. Journal of Banking & Finance, 33(11).
Collins, J. Markham (2010). Determinants of Economic Exchange Rate Exposure. Working Paper, 2010.
Eun, Cheol S., Resnick, Bruce G. (2009). International Financial Management. McGraw-Hill
Goldberg, S., & Drogt, E. (2008). Managing Foreign Exchange Risk. Journal of Corporate Accounting &
Finance (Wiley), 19(2), 49-57.
Kenen, Peter B. (1966). The Theory of Optimum Currency Area: An Eclectic View. In Monetary
Problems of the International Economy, Mundell, Robert A. and Swoboda, Alexander K. Eds. University
of Chicago Press, 1969.
Kotil, Erdogan; Konur, Fatih; Çakici, Kemal (2009). Assessment of the Euro Zone According to the
Criteria of the Theory of Optimum Currency Areas. International Research Journal of Finance &
Economics, Issue 27, p29-39, 11p
McKinnon, Ronald I (1963). Optimum Currency Areas. American Economic Review, Vol. 53 Issue 4,
p717, 9p
4 International Financial Management | The University of Tulsa
Mundell, Robert A. (1961). A Theory of Optimum Currency Areas. American Economic Review, Vol. 51
Issue 4, p657, 9p
Mundell, Robert A. (1998). What the Euro Means for the Dollar and the International Monetary System.
Atlantic Economic Journal, Sep98, Vol. 26 Issue 3, p227, 11p
Mundell, Robert A. (1999). The Euro: How Important? CATO Journal, Vol. 18 Issue 3, p441, 4p
Mundell, Robert A. (2002). Does Asia Need a Common Currency Market? Pacific Economic Review,
Vol. 7 Issue 1, p3, 10p
Shapiro, Alan C. (1985). Corporate Strategy and the Capital Budgeting Decision, Midland Corporate Finance Journal, Spring 1985. Reprinted in The Revolution in Corporate Finance (editors, Joel Stern and
Donald Chew), Basil Blackwell, 1998
Shapiro, Alan C. (2010). Multinational Financial Management. John Wiley & Sons, Inc.
Vasiliauskaitė, A., Vitkauskas, M. (2007). TheAttainability Analysis to Complete requirements of
Optimum Currency Area with EU. Economics & Management, 2007, p261-268, 8p
Quah, Chee-Heong (2009). The Feasability of East Asian Monetary Union as an Optimum Currency
Area. International Journal of Asia-Pacific Studies, Vol. 5 Issue 2, p65-90, 26p
Zhao, X., Kim, Y. (2009). Is the CFA Franc Zone an Optimum Currency Area? World Development, Vol.
37 Issue 12, p1877-1886, 10p
Recommended Readings
Cesarano, F. (2006). The Origins of the Theory of Optimum Currency Areas. History of Political
Economy, Winter2006, Vol. 38 Issue 4, p711-731, 21p
Dellas, Harris; Tavlas, George S. (2009). An optimum-currency-area odyssey. Journal of International
Money & Finance, Vol. 28 Issue 7, p1117-1137, 21p
Frankel, Jeffrey A.; Rose, Andrew K. (1998). The Endogeneity of the Optimum Currency Area
Criteria,Economic Journal, Vol. 108 Issue 449, p1009-1025, 17p
Frankel, Jeffrey; Rose, Andrew (2002). An Estimate of the Effect of Common Currencies on Trade and
Income, Quarterly Journal of Economics, Vol. 117 Issue 2, p437-466, 30p
Hutson, Elaine; O’Driscoll, Anthony (2010). Firm-level exchange rate exposure in the
Eurozone,International Business Review, Vol. 19 Issue 5, p468-478, 11p
Kenen, Peter B. (1997). Common currencies versus currency areas. American Economic Review, Vol. 87
Issue 2, p211, 3p
Kenen, Peter B. (2010). There Was No Analytical Alternative to the Theory of Optimum Currency Areas.
Econ Journal Watch, Vol. 7 Issue 1, p73-75, 3p
Kenen, Peter B. (2003). Making the Case for The Euro. International Economy, Vol. 17 Issue 1, p51, 4p
5 International Financial Management | The University of Tulsa
Makar, Stephen D.; Huffman, Stephen P. (2008). UK Multinationals' Effective Use of Financial
Currency-Hedge Techniques: Estimating and Explaining Foreign Exchange Exposure Using Bilateral
Exchange Rates, Journal of International Financial Management & Accounting, Vol. 19 Issue 3, p219-
235, 17p
McKinnon, Ronald I. (1994). A Common Monetary Standard or a Common Currency for Europe? Fiscal
lessons from the United States, McKinnon, Ronald I. Scottish Journal of Political Economy, Vol. 41 Issue
4, p337, 21p
McKinnon, R. (2002). Optimum Currency Areas and the European Experience, Economics of Transition,
Vol. 10 Issue 2, p343-364, 22p
McKinnon, Ronald I. (2002). Money and Finance on the Periphery of the International Dollar Standard,
International Journal of Finance & Economics, Vol. 7 Issue 2, p87-96, 10p
McKinnon, Ronald I. (2004). Optimum Currency Areas and Key Currencies: Mundell I versus Mundell
II, Journal of Common Market Studies, Vol. 42 Issue 4, p689-715, 27p
Mishra, R. K., Sharma, C. (2010). Real Exchange Rate Behavior and Optimum Currency Area in East
Asia: Evidence from Generalized Purchasing Power Parity, International Review of Financial Analysis,
Vol. 19 Issue 3, p205-213, 9p
Mundell, Robert A. (1960). The Monetary Dynamics of International Adjustment under Fixed and
Flexible Exchange rates,Quarterly Journal of Economics, Vol. 74 Issue 2, p227-257, 31p
Mundell, Robert A. (1973). Uncommon Arguments for Common Currencies, In H.G. Johnson and A.K.
Swoboda, eds., The Economics of Common Currencies (115-132). Harvard University Press, Cambridge.
Mundell, Robert A. (2000). Currency Areas, Volatility and Intervention. Journal of Policy Modeling, Vol.
22 Issue 3, p281, 19p
Ozer, I., Ozkan, I., Aktan, Okan H. (2007). Optimum Currency Areas Theory: An Empirical Application
to Turkey, South East European Journal of Economics & Business; Issue 4, p75, 14p
Shapiro, A., & Rutenberg, D. (1976). Managing Exchange Risks in a Floating World, Financial
Management (1972), 5(2), 48-58.
Silvestre, João; Mendonça, António (2007). The Endogeneity of Optimum Currency Areas Criteria: Some
Evidence from the European Union and Portugal. International Advances in Economic Research, Vol. 13
Issue 1, p1-18, 18p