IBS801 - International Banking and Finance

Outline info
Semester
School
Last revision date 2017-05-29 00:29:22.778
Last review date 2017-07-17 00:15:23.154


Subject Title
International Banking and Finance

Subject Description
In today's global market, it's imperative for an organization to examine all possible financial risks before entering into negotiations. In this course, students will examine and discuss the intricacies of international money markets, the actions of governments and investors, and the effects of inflation, interest rates, tax and the flow of currency. Strategic global investment, the optimization of cash flow and pricing alternatives will be examined. The case studies would provide opportunity to build the skills required to create and manage finance across borders.

Credit Status
One credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Analyze the impact of international banking organizations and monetary systems on an organization's integrative trade initiatives.
  2. Evaluate strategies to access financing for integrative trade and facilitate their implementation.
  3. Evaluate cash-flow strategies and facilitate their implementation.
  4. Facilitate the implementation of appropriate methods and terms of payment (e.g., letters of credit, deferred payment plans and performance bonds).
  5. Evaluate financial risk management strategies and facilitate their implementation.
  6. Evaluate foreign exchange strategies that help to protect the organization from fluctuating currencies and facilitate their implementation.
  7. Complete financial needs and constraints analysis which meets an organization's objectives.
  8. Evaluate an organization's transfer pricing strategy and facilitate its implementation.
  9. Apply mathematical operations to support a basic business case qualification (e.g. internal rate of return (IRP), return of investment (ROI) and profitability index (PI).

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Execute mathematical operations accurately.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
None.

Topic Outline

  1. Introduction to the financial motives and management
  2. International flow of funds-balance of payments, agencies involved
  3. International financial markets, quotations, financial risks
  4. Conditions that affect exchange rates
  5. Exchange rate systems and government intervention
  6. Relationships between inflation, interest, and exchange rates
  7. Measuring exposure to exchange rate fluctuations; transaction, economic, translation
  8. Hedging techniques to eliminate or reduce transaction exposure
  9. Multinational capital budgeting
  10. Financing international trade and apply mathematical operations to supply a basic business case qualification
  11. Strategies and complications in optimizing cash flows.

Mode of Instruction
In-class:
A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts
Title:      International Financial Management
Edition:   12th edition
Author:    Jeff Madura
Publisher: Cengage
ISBN:  9781133947837
(updated for Summer 2015)

Reference Material
Title:            Incoterms®  2010 ICC Publication #715
Publisher:    http://store.iccbooksusa.net/incoterms2010.aspx
ISBN:           978-92-842-0080-1

Recommended Reading:
Title:          International trade Finance
Edition:      6th Blue
Author:     Forum for International Trade Training (FITT)
Publisher:  FITT - Module 3
ISBN:        9781894566452

To purchase eBooks, please contact FITT directly directly at:  http://fittfortrade.com/textbooks-ebooks 
Students interested in the FITT credentials may consider purchasing all 8 eBooks.  Purchasing all 8 books will cover the Professional Examination or 2 assessments, transfer of credits, and diploma.  ($575 + tax).  Individual books may be purchased as well.


Financing Trade and International Supply Chains: Commerce Across Borders, Finance Across Frontiers
By Alexander R. Malaket
Here’s the link:  http://www.amazon.ca/gp/product/1409454606/ref=as_li_ss_tl?ie=UTF8&camp=15121&creative=390961&creativeASIN=1409454606&linkCode=as2&tag=emiliaintroc-20 

Current issues of newspapers, business magazines, trade periodicals, government statistical reports, international trade and financial reports.

Required Supplies
None.

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.
 
In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.
 
Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:  http:/senecacollege.ca/library
 
Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.
 
English Competency
The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.
 
Grading is based on the following marking scheme:
 

Assignments (2 @ 10% each) 20%
Individual Presentation 05%
Term Tests (2 @ 20% each) 40%
Final Exam 35%
 
Please retain this course outline document for future educational and/or employment use.

Program Manager:
  Danielle Mercier

Approved by: Academic Program Manager - Business Studies Danielle Mercier