SYLLABUS
FACULTY ECONOMIC AND BUSINESS
INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)
1 Name of Course / Module International Finance
2 Course Code EI8441
3 Credit Value 3
4 Objective
By the end of this course, students are expected to have attained proficiency in analyzing the International Monetary System and its recent developments.
5 Learning Outcomes
- 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
6 Synopsis
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
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.
7 References
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 8 Lecturer Susilo Nur Aji Cokro Darsono, SE., MRDM
9 Correspondence
Lecturer Room, E4 Building 2nd Floor
E-mail: susilonuraji@gmail.com / susilonuraji@umy.ac.id WA: 08565022013
10 Academic Evaluation
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
1 - 3th meeting
Introduction to International Finance: Introduction to the Topic in Company Context
- Size and Scope of International Business - Size and Scope of Foreign Exchange Markets
- How Foreign Exchange Affects International Business - Why the Company Needs Expertise in International Fianance
3- 5th meeting
Factors Affecting Exchange Rate Movements
- The Problem of Foreign Exchange Volatilities - Getting Started in Trading Currencies
- Principles of Forecasting - Currency Crisis
- Interest rate-IRP - Inflation-PPP - Economic Growth - Government Actions
- Riba’ and Monetary in Islam
6-7th meeting
Managing Foreign Exchange Risks - Speculators
- Adjusting Prices
- Dealing with Single Currency - Leads and Lags
- Forward Contracts - Futures
- Options - Swaps
- Hedging Principles - Hedging in Gold Dinar - Sukuk
9th meeting Test competency I
10-12th meeting
International Debt - The debt problem
- Growth of International Debt - Debts and Economic Growth - Capital Flight
- Government and national foreign indebtedness - The lender trap
- International debt facilities - Debt in Islam
13-15th meeting
Financing Imports and Exports - Import-export Opportunity - Trade terms and Resources
- Letters of Credit and Payment Terms - OPIC
- Terms and Resources for Trade - Method of short-term financing - Counter Trade
- Islamic L/C 16-17th meeting
The Future of International Finance - Japan
- 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
