International Finance

SYLLABUS  Fall 2009




International Finance
Eco 343
Fall 2009
Wednesday, 6:00 - 8:40 PM
Mahar 214
     Said Atri
     Mahar 431
     Office Hours:
     Monday: 11:30 AM - 2:00 PM
     Wednesday: 12:15 PM - 2:00 PM
     and by appointment


Course Description

International finance is a study of the financial and monetary dimension of trade and investment relations among nations. It examines the international consequences of economic activities and the roles of economic and financial institutions in effecting these consequences. In this course we study money and foreign exchange markets, the balance of payments and capital flows. Moreover, in the context of an open economy, we examine the roles of government and central banking systems in effecting macroeconomic policy.

Course Objectives

In the highly interdependent economies of today’s world no business decision is completely free from international influences and without international implications.  No students of economics or business can expect to fully understand current economic and business developments without some understanding of international finance. The primary objective of this course is to provide students with a basic knowledge of international monetary and financial relationships. Upon successful completion of this course, students will know the basics of the international monetary system, foreign exchange markets, financial markets and institutions, the balance of payments, and the macroeconomic fundamentals of an open economy.  Students will also be exposed to the recent theoretical and empirical works in international finance.

A Note to Students

The basic prerequisites for this course are the two introductory courses in macroeconomics and microeconomics.  It is expected that students have a basic understanding of supply and demand analysis and some familiarity with basic macroeconomic concepts. Students will also benefit from their mathematical skills as some analyses in this course involve limited use of basic algebra. In addition to the textbook, students will be provided with references to news reports and articles as well as online publications relevant to the topics covered in the course.

Required Textbook
Beth V. Yarbrough and Robert M. Yarbrough, The World Economy, Open Economy Macroeconomics and Finance, 7th Edition, Thomson South-Western: 2006

Course Outline

                                Forward, Futures and Options Markets                                 The Balance of Payments and The Foreign Exchange Market
                                  Trade and the Economy: The IS Curve
                                  Money and Banking in an International Context
                                   Macroeconomic Policy under Fixed Exchange Rates (Chapter 6)
                                 Macroeconomic Policy under Flexible Exchange Rates (Chapter 7)
                                  Money and the Economy
                                Equilibrium in an Open Economy (Chapter 9)
Evaluation Methods

There will be three examinations: two midterms and a final. In addition students will be given weekly quizzes and/or assignments. The course grades will be determined based upon the distribution of the weighted sum of all the points obtained from the exams, quizzes and assignments as outlined in the table below.
Test One 
Wednesdy, September 30
Test Two
Wednesday, November 4
Final Exam 
 Wednesday, Dec 16 
Quizzes and Homeworks

It is required that students attend classes regularly as excessive absences could adversely affect their grades in the course.

Intellectual Integrity
Intellectual integrity on the part of all students is basic to individual growth and development through college course work. When academic dishonesty  occurs, the teaching/learning climate is seriously undermined and student growth and development are impeded. For these reasons, any form of intellectual dishonesty is a serious concern and is therefore prohibited.

Note: If you have a disabling condition which may interfere with your ability to successfully complete this course, please contact the Disability Services Office.

Contact Information
Office: 431 Mahar Hall
Telephone: (315) 312- 3954
Email address:
Web site: