DANIEL ARTHUR LAPRES - International law firm in Paris, cabinet d'avocats internationaux è Paris

Cabinet d'avocats

INTERNATIONAL FINANCE

last update: December 16, 2008

COURSE DESCRIPTION

This course is intended for senior undergraduates and masters level students in international business. Its purpose is to familiarize participants with the theories and practices of international finance as well issues of current interest.

The program consists of lectures, case studies, exercises and simulations.

Ample use is made of mathematical approaches.

Case studies will be prepared and presented orally by groups of students.

Opportunities are offered to participate in simulations of currency trading and of international portfolio management.

OUTLINE

The international financial environment

The actors
The trends

Exchange rates

Determination of exchange rates
Measuring exchange rate risk
Managing exchange rate risk

International portfolio investment

Financial instruments (stocks, bonds, futures, swaps, options)
International diversification

International Project Finance

Measuring cash flows
Project evaluation

Management of current assets and liabilities

Trade finance
Optimal financing of debt

Financial management of international groups

Capital structures in international groups
Managing internal cash flows

READINGS

Basic text: Alan Shapiro, Multinational Financial Management (Wiley, 5th ed., 1999)

EXERCISES

Students will frequently be assigned exercises to prepare for the next class. This link is to sample exercises and answers.

Exercises on currency risks

SIMULATIONS

Currency trading simulation

The US*/€/RMB exchange rates will be posted at the start of the course. Students will be asked at the first class to record an estimate of the exchange rates on the final day of the class on May 23, 2008. A question on the final exam will relate to the evolution of these exchange rates. Students will have the option of handing in on a regular basis their trades and recording their gains and losses as well as new sources of information that they may have collected on the exchange rate trends. Evaluation of the students' participation in the project will be based more on the efforts rendered and the lessons drawn than on the hypothetical gains or losses.

The students may access numerous news stories about recent market evolutions and commentary of specialists. The URL will be given out at the first class.

Fund simulation

Students may work on a simulation of a fund's hypothetical investmentin a China fund.

The students may access numerous news stories and weblinks about recent market evolutions and commentary of specialists. The URL will be given out at the first class.

PROGRAM

PART I - THE INTERNATIONAL FINANCIAL ENVIRONMENT

Meeting 1:

Definition of the subject and identification of the principal actors and of their roles
Approaches to financial globalization
Electronification of financial markets

Reading:
Shapiro, Chapters 1, 3 and 17

Web reading:
Droit communautaire afférant aux Systèmes de Négociation Alternatifs
Le marché boursier de l'électricité aux Etats-Unis

Assignment 1:
Trace briefly the history of the MATIF (Paris) and highlight the reasons for its demise.

Meetings 2 and 3:

Recent history of the international financial system
The fight against international money laundering and financial crimes
The role of the IMF and other international organizations of a financial nature

Web reading:
La crise financière en Corée
Le risque pénal dans les relations d'affaires avec la République Populaire de Chine

Assignment 2:
Assess the long term results of the IMF's intervention in the South Korean financial crisis.

Assignment 3:

Un avocat parisien reçoit un de ses meilleurs clients dans son cabinet et apprend que le client veut engager ses services pour monter une société à Hong Kong.

Le client dit à l'avocat qu'il amassé une somme d'environ 100.000 Euros en espèces provenant de ventes en liquide non déclarées à partir des diverses boutiques dans son réseau de magasins de détail.

Le client propose de porter la somme en plusieurs fois jusqu'à Hong Kong dans ses valises et de déposer l'argent dans un compte qu'il contrôlera à travers un prête-nom.

Ce prête-nom ensuite fera des avances de trésorerie à la société française.

Le client demande à l'avocat de lui dire quel est le montant maximum qu'il peut sortir du territoire sans avoir à le déclarer aux douanes. Aussi, il demande à l'avocat parisien de le mettre en relation avec un confrère de Hong Kong qui saura assurer la mise en oeuvre du projet sur place.

Si vous étiez l'avocat parisien, que feriez-vous? Pour répondre à la question recherchez les articles concernés du Code pénal ainsi que les textes internationaux applicables.

PART TWO - THE DETERMINATION OF EXCHANGE RATES

Meetings 4 and 5:
Approaches to the determination of exchange rates

Reading:
Shapiro, Chapters 2, 4, 5 and 7

Meeting 6:

Case studies
Shapiro,
I.1 - Oil levies
I.2 - President Carter
I.3 - Rescuing the Rupiah
I.3 - Real Battle