d163566 International Finance

CEVRO University
spring 2024
Extent and Intensity
24/24/0. 7 credit(s). Type of Completion: zk (examination).
Teacher(s)
Mgr. Jan Neugebauer, Ph.D., MBA (lecturer)
Ing. Marek Vokoun, Ph.D. (lecturer)
Guaranteed by
Ing. Marek Vokoun, Ph.D.
Department of Economics – Departments – President – CEVRO University
Timetable
Mon 15:30–16:50 Učebna 106, Mon 17:00–18:20 Učebna 106
  • Timetable of Seminar Groups:
d163566/cviceni: No timetable has been entered into IS.
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives
Students will gain a comprehensive understanding of the principles governing monetary and macroeconomic interactions among nations. Develop proficiency in analyzing the structure and functioning of international finance through both macroeconomic and financial lenses. They will explore a range of issues pertinent to the global financial landscape, including the application of conventional financial theories in a complex international context (e.g., effects of exchange rates, international CAPM, and betas). Recognize how institutional constraints can pose challenges or present opportunities for multinational corporations, such as accessing new markets and navigating regulatory environments. They will evaluate managerial objectives and their impact on traditional financial goals within multinational firms, considering how they may alter financial strategies and leverage institutional opportunities.
Learning outcomes
This subject aims to equip students with the necessary knowledge and skills to navigate the global financial landscape. It emphasizes their ability to critically analyze international financial markets, exchange rates, international investment, and risk management. Upon successful completion of this course students will understand the principles of the monetary and macroeconomic relations between countries. Students will deal with structure and operation of international finance from both a macroeconomic and financial perspective. The emphasis will be on understanding a variety of issues, such as the application of traditional finance considerations to a more complex global setting (e.g., exchange rate effects, international CAPM and betas), how institutional constraints can create obstacles and opportunities for multinational firms (e.g., new prospects in different markets), and managerial objectives that can limit the relevance of traditional financial objectives or institutional opportunities.
Syllabus
  • Week 1: Introduction to International Finance - Overview of international finance and its significance - Key concepts: foreign exchange, exchange rates, balance of payments
  • Week 2: Exchange Rates and Foreign Exchange Markets - Determinants of exchange rates - Understanding the foreign exchange market and its participants - Exchange rate regimes
  • Week 3: International Monetary System - Evolution of the international monetary system - Role of international financial institutions (IMF, World Bank)
  • Week 4: International Parity Conditions - Purchasing Power Parity (PPP) - Interest Rate Parity (IRP) - Covered and Uncovered Interest Rate Parity
  • Week 5: International Capital Budgeting - Evaluating foreign investment opportunities - Methods for assessing and comparing projects in different countries
  • Week 6: International Portfolio Investment - Portfolio diversification and risk management in a global context - Factors influencing international portfolio investment decisions
  • Week 7: Exchange Rate Risk Management - Techniques for managing exchange rate risk - Hedging strategies: forwards, futures, options
  • Week 8: International Trade and Finance - Relationship between international trade and finance - Trade imbalances and their impact on exchange rates
  • Week 9: International Financial Markets - Global bond and equity markets - International banking and the role of multinational corporations
  • Week 10: International Capital Markets - Eurocurrency market and offshore financial centers - International bond and equity markets
  • Week 11: Financial Crises and Their Implications - Causes and consequences of financial crises - Response and policy measures during financial crises
  • Week 12: International Financial Management - Multinational corporations and their financial management - Ethical considerations in international finance
Literature
    required literature
  • GIGANTE, Gimede. Principles of International Finance. Milano: Bocconi University Press, 2022. ISBN 978-88-313-2247-8.
  • PILBEAM, Keith. International Finance. 5th edition. London: Bloomsbury Academic, 2023. ISBN 978-1-3503-4710-6
    recommended literature
  • MISHKIN, Frederic. The Economics of Money, Banking and Financial Markets, Global Edition. 13th edition. Harlow, England London New York Boston San Francisco Toronto Sydney Dubai Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Sao Paulo Mexico
  • CECCHETTI, Stephen a Kermit SCHOENHOLTZ. Money, Banking and Financial Markets. 6th edition. New York, NY: McGraw Hill, 2020. ISBN 978-1-260-22678-2
  • LESSAMBO, Felix I. International Finance: New Players and Global Markets. 1st ed. 2021 edition. Cham, Switzerland: Palgrave Macmillan, 2022. ISBN 978-3-030-69234-6.
Teaching methods
Lectures, seminar, case study, homework
Assessment methods
Seminar paper (Essay or case) and its presentation (25%), mid-term test (25%), final test (50%)
Language of instruction
English
Further Comments
Study Materials
The course is also listed under the following terms summer 2020, spring 2021, spring 2022, spring 2023.
  • Enrolment Statistics (recent)
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