Summer 2003
International Finance and Tax Planning

Mondays, 5:30 - 8:00 PM
122 Monroe Hall

David W. LaRue, PhD 251 Monroe Hall 924-3235 dwl2c@virginia.edu Office hours by appointment

Mark A. White, PhD 210 Monroe Hall 924-7365 mwhite@virginia.edu www.commerce.virginia.edu/mwhite Office hours by appointment

OBJECTIVES

International Finance and Tax Planning is designed to achieve several objectives. First, we will study the theory underlying the financial operations of international firms, financial institutions and markets. We will examine all of the key players: corporations, central banks, commercial banks, and marketplaces. We will learn about monetary systems, interest rates and exchange rates, foreign trade, international accounting and taxation -- all within the context of an increasingly global economy. Then, we will travel abroad to obtain a first hand view of the practice of international finance, accounting and tax planning. Second, the course provides the opportunity to see other countries and participate in other cultures, and to grow through this enlightenment. Finally, experience has shown that this course may well be one of the most memorable experiences you will ever enjoy. Traveling, studying and sharing together with a small class for several weeks is an experience you will likely look back upon with fond recollection. However, do not lose sight of the fact that as a bona fide Commerce course, it carries with it the usual high expectations associated with the McIntire School of Commerce. As a representative of the University of Virginia and your country, the standards you must live up to are quite high.

COURSE HISTORY

This course represents a new direction in international programs at the McIntire School, both figuratively and literally. We have developed an eclectic course merging and integrating the "best of" the sister disciplines of international finance, accounting and taxation. The McIntire School has offered opportunities for international study in finance and accounting for more than twenty-five years. Professors White and LaRue have led classes overseas for the past several years and joined forces three years ago in a creative new program allowing students the opportunity to benefit from their mutually overlapping areas of interest. All students will participate in the exciting on-grounds instruction period during the Spring term, and then leave in late May for a three-week venture to Australia, New Zealand, and Hawaii.

The course's design is aimed at understanding the management of a multinational firm through its financial, accounting and tax strategies. Thus, its scope goes far beyond the traditional economic concerns of foreign exchange markets and the forecasting of exchange rates. Significant portions of the course are devoted to the international money and capital markets, international capital budgeting and financing decisions, taxation, trade finance, and international portfolio management. Much of our studies will center on the role of multinational firms and financial institutions in facilitating world trade.

This course provides a sound basis for students seeking to understand the complexities and opportunities of international business. Offering this class as a regular summer course allows all students, regardless of concentration, an opportunity to participate. Offering the course overseas allows for a unique opportunity in that businesspersons holding top management positions will provide almost daily lectures concerning their dealings with international finance and/or accounting.

The course builds upon the McIntire School's third-year curriculum, composed of finance, accounting, marketing, management and quantitative methods. Students do not need to be in the Commerce School if they will have taken COM 371, ECON 435 or the equivalent before we leave the States in the Spring. This course provides an opportunity to broaden and build upon the student's background and interest. The combination of experienced McIntire faculty, lectures by well-respected executives, on-site visits to international financial centers and the cultural environs of Australia and New Zealand will contribute to a unique, purposeful and well-developed intellectual experience for students and faculty alike.

CLASS FORMAT

COM 474 is offered through the University of Virginia's Summer Session program. The course does not officially begin until Thursday, May 9, 2003. However, to prepare for our intense tours through Europe and the Far East, we will meet in 122 Monroe Hall from 5:30 to 8:00 PM on Monday evenings every other week during Spring 2002. Classes will consist of discussion, lectures and presentations. Biweekly quizzes/problem sets will be administered and the on-site portion of the course will culminate with a take-home final exam given during exam week.

We will then spend 3-4 weeks overseas visiting companies, financial institutions, government agencies, accounting firms, international organizations and financial markets. Except for your days off, there will be a brief class session every afternoon or evening to discuss the current day's experiences and upcoming visits. We will depart from Washington Dulles airport on Thursday, May 9th and return June 1st.

TEXTS AND REQUIRED READING

Kemp, R., White, M. and LaRue, D. International Financial Management, forthcoming.

The Economist (subscriptions are available on the web at www.economistacademic.com)

Additional material as assigned ... see schedule

GRADING

Grades are based on performance, NOT effort.

The breakdown of assignments is as follows:

Your "contribution" grade is one that you must earn. The nature of a small class is such that regular attendance is an absolute minimum requirement for the effective acquisition of knowledge. Class contribution, however, involves much more than just showing up. Your performance in class will be graded along several dimensions: cognitive skills (insight, knowledge, creativity and logic); expressive elements (clarity, fluency and conciseness); affective ingredients (enthusiasm and interest) as well as your contribution to the process of learning itself (constructive criticism and relevance).

Quality contributions change the direction of class discussion to benefit the group, rather than for selfish reasons. They can be measured by the frequency with which others cite your ideas and/or respond directly to you. Grades will be assigned on a +/- basis; additional information is available on our grading policies.

SCHEDULE

A schedule of class meetings during the Spring semester is available from Professor LaRue.

HONOR

Students enrolled in this class are expected to abide by the standards of the University of Virginia's Honor Code. To avoid any ambiguity, two issues merit special discussion. First, please avoid the temptations of plagiarism. The ready availability of information over the Internet has led to an epidemic of "surfing and pasting" across college campuses. Claiming credit for the work of another is not honorable. Secon , in this class, all members of are group will be held equally accountable for work turned in on behalf of the group (aka "joint and several liability"). Thus, it might behoove one to read what one's group has written before signing the pledge.

LEARNING NEEDS

All students with special needs requiring accomodation should present the appropriate paperwork from the Learning Needs Evaluation Center (LNEC). It is the student's responsibility to present this paperwork in a timely fashion and to follow up with the instructor about the accomodations to be offered. Accomodations for test-taking (e.g., extended time) should be arranged at least 7 days before an exam.