HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

61FIN3IFI

INTERNATIONAL FINANCE

Spring 2023
 Subject Details

Subject Name International Finance (61FIN3IFI)

Units of Credit 5

Study Length 15 weeks

Prerequisite/ Co-requisite Financial management (61FIN2FMA)

Suggested Study
5 hours per week
Commitment

Academic Year Semester 2, Academic Year 2021-2022

Subject Coordinator Dao Mai Huong (Lecturer)

Subject Tutors 1. Dao Mai Huong (email: [email protected])

FMT: R. 203, Building C

Contact Details
Office telephone: (043) 55 33 560

The subject profile contains important information. Please ensure that you read it carefully. It is also
strongly recommended that you keep this copy of your subject profile for future reference.

Subject description
This subject introduces you to the financial operations of firms in an environment of open and
integrated financial markets. An understanding of international financial management is crucial not
only for the large multinational corporations (MNCs) but also for companies with no international
business because these companies must recognize how their competitive position will be affected by
movements in exchange rates, foreign interest rates, labour costs, and inflation. In this subject, you will
be asked to examine the theoretical and empirical explanations of such effects, and to analyze the
institutional and practical issues firms must consider when making decisions on financing and
investment in a global economic setting.

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Learning outcome
Upon completion of the course, students will be able to
Knowledge
1. Explain the components of balance of payments; the components of the international
financial markets and the problems existed in the international business and finance.
2. Apply the international finance theories and management practices into forecasting the
exchange rates changes and be able to evaluate methods and financial tools used to mitigate the
risks in the context of international business operations and financial investments.
Competences:
1. Practice calculating and formulating the balance of payment; calculate the exchange rates
between currencies and cross exchange rate and conduct arbitrage; calculate and assess cost of
capital for international funding and rate of return for international portfolio investment;
2. Construct processes to mitigate exchange rate risks and other related risks in international trade
and investment;
3. Be able to learn, self-research, group-work and write report on international finance topics.
Attitudes:
1. Actively participate in the given tasks to fulfill subjects requirements.

Course communication
A Microsoft Teams class for this course has been created and you are invited to join prior to the start of
the course. All the materials of the course are provided on this platform. Students who are not
registered on MS Teams are not qualified to sit for the Final Examination.
Students with Disability

If you have a disability and are in need of academic accommodations, please notify me immediately to
arrange needed supports.

Academic Honesty

Faculty of Management and Tourism strictly prohibits all forms of academic cheating, fraud, and
dishonesty. These acts include, but are not limited to, plagiarism, buying and selling of course
assignments and research papers, performing academic assignments (including tests and examinations)
for other persons, and other practices commonly understood to be academically dishonest. Acts of
academic dishonesty may result a failing grade on the exam or assignment for which the dishonesty
occurred or failing the course.

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Course structure

The structure of this course for on-campus students comprises of one 2.5 class hour lecture and one 2.5
class hour tutorial per week.

Reading materials

Reading Type Title Author and Year Publisher

Multinational Business Eiteman, D. K., Stonehill, A. I. and Pearson
Core Text Finance Moffett, M. H. (2013), 13th
Edition.

International Financial Jeff Madura (2021), 14th edition. Cengage

Highly Management Learning
Recommended

Press
Vietnam News
Vietnam Economic Times
Economic Times
Vietnam Investment Review
Wall Street Journal (Asian Version)

Internet Resources
http://www.vietnamwebsite.net
http://www.vvg.com
http://www.vneconomy.com
http://www.vietnamnet.vn
http://www.vir.com.vn
http://www.mof.gov.vn
http://www.mpi.gov.vn
http://www.mot.gov.vn
http://www.sbv.gov.vn
http://www.vietcombank.com.vn
http://www.vcci.com.vn/
http://www.worldbank.org
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http://www.undp.org
http://www.imf.org

Assessment
Assessment for the subject will be on the basis of:

Method of assessment Time of assessment Weight

Class Participation Every tutorial + online quiz 10%

Small test Week 5 10%

Mid-term Test Week 10 20%

Assignment (group of 4 or 5) Week 12 10%

Final Exam TBA 50%

5
1. Class participation
Weight: 10%
Description of Task
Class participation assessment includes participating in the tutorial class, doing homeworks and online
revision quizzes (if any).
2. Small Test
DATE: TBA Weight: 10%
Description of Task
Duration: 30 minutes.
Format: Multiple Choice Questions.
Coverage: week 1 to week 4.
Please bring a calculator for the test.
3. Mid-term Test
DATE: TBA Weight: 20%
Description of Task
The mid-term test requires students to review and apply the material that has been explored during the
subject, and gives the students the opportunity to demonstrate their understanding of both the theoretical and
practical implications of financial management within multinational organizations.
Duration: 60 minutes.
Format: Multiple Choice Questions & short-answer problems.
Coverage: week 5 to week 9.
Please bring a calculator for the test.
4. Assignment
DATE: TBA Weight: 10%

Description of Task: Students in groups (4-5 students) are given case studies on international finance topics
and required to apply knowledge learned from the subject to answer questions related to the case study.

5. Final Examination
DATE: TBA Weight: 50%
Description of Task
Duration: 120 minutes
Format: Section 1: 20-30 multiple choice questions 6
Section 2: 2-3 problems
Coverage: All topics covered in the course
Please note that formula sheet will be provided. Please bring a calculator.
Lecture schedule

Week Topics Chapter

Lecture 1: Globalization and MNEs; The international
1 1&3
monetary system
Lecture 2: International Business Transactions: The Balance of
2 4
Payments

3 Lecture 3: The Foreign Exchange Market 6

Lecture 4: International Parity Conditions and exchange rate

4 7&9
forecasting
Lecture 5: International Parity Conditions and exchange rate
5 7&9
forecasting (continued)
Lecture 6: Foreign Currency Derivatives
6 8
Small Test

7 Lecture 7: Foreign Currency Derivatives (continued) 8

8 Lecture 8: Foreign Exchange Exposures 10, 11 & 12

9 Lecture 9: Foreign Exchange Exposures (continued) 10, 11 & 12

10 Mid-term test

11 Lecture 10: Financing global firms 13&14

12 Lecture 11: International portfolio investments 16

13 Lecture 12: Final revision

REI BUSINESS WEEK
14 (All lectures to be delivered by REI speakers)

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 Tutorial schedule
Week Topics Chapter

1 Self-Study
Tutorial 1: Global Financial Environment and the Firm
2 Chapter 1: problem 1, 2, 3, 4 and 5. 1&3

Chapter 3: question 3, 4, 8, 9
Tutorial 2: International Business Transactions: The Balance of Payments
3 4
Chapter 4: Question 15 & Problems 1, 2, 3, 4 and 5.
Tutorial 3: The Foreign Exchange Market, FX Rate Determination and
4 Forecasting 6
Chapter 6: Problems 2, 4, 7, 9, 10 and 12.
Tutorial 4: International Parity Conditions
5 7&9
Chapter 7: Problems 1, 3, 5, 6 and 18.
Tutorial 5: International Parity Conditions (Continued)
6 7&9
Chapter 7: Problems 4, 7, 8, 15. Chapter 9: Question 4, 5.
Tutorial 6: Foreign Currency Derivatives
7 8
Chapter 8: Problem 1, 3, 5, 6.

Tutorial 7: Foreign Currency Derivatives (continued)

8 8
Chapter 8 - Problem 2, 4, 9, 12
Tutorial 8: Foreign Exchange Exposures (1)
9 10, 11 & 12
Chapter 10: problem 1, 2, 16
Tutorial 9: Foreign Exchange Exposures (2)
10 10, 11 & 12
Chapter 12: Question 6, problem 1, 2, 8
Tutorial 10: Financing global firms
11 13&14
Chapter 13: Problem 1, 2, 5; Chapter 14: Question 5, 7, 24, 25; problem 7
Tutorial 11: International portfolio investments
12 16
Chapter 16: Question 1, 2, 3, 5, 9, 10; Problem 1, 2, 3, 4

13 Tutorial 12: Revision for Final Examination All

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