GBPGBP (Global Business Program)

The objective of the International Business II course is to examine the fluctuations in foreign exchange rates and multinational finance. It aims to equip students with the necessary skills to pursue careers in financial institutions and the financial divisions of manufacturing companies. In the global economy, multinational corporations face the challenge of forecasting and mitigating risks associated with currency depreciation. To accurately predict foreign exchange rates, it is crucial to comprehend the fundamental principles that govern their determination. This course will provide students with the fundamental concepts to comprehend the underlying logic behind foreign exchange rate movements. It will explore evidence, concepts, and models that contribute to our understanding of foreign exchange rates. Additionally, it will analyze the strategies employed by multinational corporations in response to the volatile nature of currency values.

The goal of this course is to provide students with a comprehensive understanding of the fundamental principles underlying international financial markets. By the end of the course, students will be equipped with the necessary knowledge and skills to forecast currency value fluctuations in the market. The students will also develop the ability to critically analyze the financial policies implemented by central banks and regulatory authorities. This course will examine the historical trends of major currencies such as the Euro, US dollar, Chinese Renminbi, and Japanese Yen. Through the lens of foreign exchange rate theories, students will gain a clear understanding of the roles and functions of financial institutions and the various intermediary services.

This course is strongly related to the "DP1-1", "DP2-1", "DP2-2", "DP3", "DP4" and "DP5" diploma policies.

英語 / English

The course employs a combination of group discussions and lectures to facilitate learning. A significant portion of class time will be dedicated to the analysis of newspaper articles, readings, case materials, websites, financial statements, and video materials. Each class session will introduce a major theory in the field of international business and finance, which students will apply to real-world scenarios upon completion of the course.

あり / Yes

なし / No

授業形態/methods of teaching：対面/face to face

※各回の授業形態は予定です。教員の指示に従ってください。

1[対面/face to face]：Course introduction

Course outline and introduction. The distinctions between gambling and investment in comparison to stock investment, mutual funds, and government bonds.

2[対面/face to face]：Module 1: Basic Background of Investment and Finance

Return on investment, yield, and capitalization. Flow and stock. Capital gain and income gain.

3[対面/face to face]：Foreign Exchange Market

The latest topics on foreign exchange rates. Basic knowledge of the Euro zone and Asian currencies. Over-the-counter market, spot transactions, outright forward transactions, and options. Textbook Chap. 8.

4[対面/face to face]：Module 2: Determinants of Foreign Exchange Rates

PPP, Big Mac Index, interest rate parity, overshooting, random walk. Textbook Chap. 9.

5[対面/face to face]：Interest Rate Parity (IRP): Institutional Aspects of Foreign Exchange Rates

Interest rate, yield, and capitalization. of central bank. The dominance of US dollar, IMF, hard peg, soft peg, floating exchange rates. Textbook Chap. 9.

6[対面/face to face]：Speculation of Currency: option

Devaluation, major banks in the world, and Nikkei index. Textbook Chap. 8.

7[対面/face to face]：Foreign Currencies and overshooting

Functions of news. Contagion in the financial turmoil. Textbook Chap. 8.

Week8[対面/face to face]：Speculation reconsidered: random work

Binomial distribution, binary and decimal systems, forward exchange rates. Textbook Chap. 9.

Week9[対面/face to face]：Biases: Overconfidence and Illusory correlation

Psychological biases. An actuality bias and the fact-convergence effect.

10[対面/face to face]：Module 3: Student Presentations on Foreign Exchange Rates

PPP, IRP, News and overshooting, Random walk, and forecasting.

11[対面/face to face]：Student Presentations on Foreign Exchange Rates

PPP, IRP, News and overshooting, Random walk, and forecasting.

12[対面/face to face]：Module 4: Accounting management and financial reports

Assets, liabilities, shareholders’ equity, in BS and PL. Textbook Chap. 19.

13[対面/face to face]：Global Debt and Equity Markets: volatility

The debt, equity, and assets of MNEs. Variance and volatility. Textbook Chap. 19.

14[対面/face to face]：Final Examination

Review of the Concepts and Practices. Review of Textbook Chaps. 8, 9, 10, 19.

Preparatory study and review time for this class are 2 hours each. Students are expected to complete the assigned readings prior to class discussions. The core material of the course is covered in Chapters 8, 9, 10, and 19 of the textbook. It is highly recommended that students go through these chapters in preparation for engaging in class discussions throughout the semester.

Textbook Information:
Title: International Business: Environments and Operations
Authors: John D. Daniels, Lee H. Radebaugh, and Daniel P. Sullivan
Edition: Sixteenth Edition
Year: 2019
Publisher: Pearson Education Ltd.
Access: This book is available at the Hosei Ichigaya Library. Please ensure that you refer to the Sixteenth Edition of the textbook.

Various materials such as news clips will be provided through Hoppii.

Active class participation and attendance 30%.
Mid-term report and/or presentation 30%.
Final exam 40%.

Through group discussions held in class, students have the opportunity to exchange their opinions with each other. It appears that all of you have been enjoying and benefiting from these opportunities for learning. If you have acquired English as a native language, we expect you to take the lead in group discussions and demonstrate leadership skills.

Smartphone, PC, dictionary, notebooks.

Professor Horaguchi is a faculty member in the Faculty of Business Administration at Hosei University. He brings valuable real-world insights to the classroom as an outside director for a company listed on the prime market of the Tokyo Stock Exchange, actively engaging with corporate practitioners. His international experience includes studying as an exchange student sponsored by Hosei University at the University of Sheffield in the UK during the early 1980s. Additionally, he was a Fulbright Scholar at Harvard University in the United States during the mid-1990s. To explore Professor Horaguchi's academic research papers and books, you can search for "Haruo Horaguchi" on Google Scholar.

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