The course " International Finance" provides a conceptual framework within which the key financial decisions of the multinational firm can be analyzed.
The Learning Objectives:
1. Extensive discussion of the basic concepts of absolute and comparative advantige as well as some insight into the gains and income redistributions associated with free trade and the consequences of barriers to trade.
2. Role of expectations in determining exchange rates.
3. Discussion of monetary union, optimum currency areas, and the causes and consequences of the introduction of the euro.
4. Integrated discussion of the five key parity relationship in international finance and how they can be used to forecast exchange rates.
5. Discussion of country risk analysis for both companies and banks, along with an analysis of the dramatic changes taking place throughout Latin America, Easten Europe, and China and their implications for economic growth.
6. Comprehensive discussion of the foreign exchange market and its institutions and mechanisms, including electronic trading.
7. Understanding of currency futures and options contracts, and their use in exchange risk management.
8. Presentation on how to compute gains, losses, and maintenance margins on a futures contract.
9. Discussion of currency spreads and barrier options.
10. Use of interest rate and currency swaps to manage foreign exchange and interest rate risk.
11. Discussion of fixed-for-fixed and fixed-for-floating currency interest rate swaps.
- Teacher: Alla Zavodina