Course Description
To introduce students to a variety of topics under the main head of international finance, topics include:
• History and development of the international monetary system.
• International payments, capital movement and exchange rate determination.
• Basics of foreign exchange market.
• Calculations of premiums and cross-exchange rates.
• International parity relationships.
• Interest rate parity, purchasing power parity and their interaction with forecasting exchange rates.
• Manage exposures to multinational firms.
• Identify risks and management of economic, transaction, and translation exposures.
• Motivation of firms participating in foreign direct investment.
• Theories of foreign direct investment (FDI), and the risks associated with it.
BOOK TO BE USED
Fundamentals of Multinational Finance Michael H. Moffett, Stonehill, David K. Eiteman, ISBN10: 1292076534 • ISBN-13: 9781292076539 2016 • Pearson • Paper Published 09 Oct 2015
EXPECTED LEARNING OUTCOM
- Define the basic concepts of international financial environment
- Describe international monetary system and flow of funds
- Describe exchange rate determination and behavior
- Describe the Balance of Payments statement and its measures
- Explain balance of payments , multinational capital budgeting and global financing decisions
- Analyze foreign exchange markets and International Flow of Funds
- Analyze and evaluate international flow of funds and international monetary systems
Course ID: FIN 412
| Credit hours | Theory | Practical | Laboratory | Lecture | Studio | Contact hours | Pre-requisite | 4.50 | 4 | 4 | FIN 306 |
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