Кто читает:: Департамент мировой экономики

Статус:: Курс обязательный

Когда читается:: 2-й курс, 3, 4 модуль

Преподаватели

Бахметьева Екатерина Сергеевна

Васильева Амина Артемовна

Мухаметов Оскар Рустямович

Подругина Анастасия Викторовна

Семенова Алина Павловна

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Abstract

The first part of the course will focus on microeconomic foundations of international financial relations: basic elements of the corporate finance, main financial markets and instruments, the principles of their functioning and their role. Both theoretical framework and modern practices will be considered in the course. The second part of the course will focus on macroeconomic aspects of international finance, including the contemporary issues of financial globalization, the evolution of international monetary systems, and institutional structure of international finance. The macro-aspects will also cover the balance of payments together with the specifics of international trade finance, international foreign exchange, credit, and securities markets as well as risks in international finance and how to mitigate them.

Learning Objectives

The aim of the Program is that students will acquire essential knowledge in, and understand key specifics of, the micro- and macro-aspects of international finance in the contemporary economic environment. Successful completion of the Program will enable students to grasp the insights of the fundamentals and complex mechanism of international finance, be in the know of the main instruments, critical trends, and risks in international finance, as well as allow them to confidently apply and integrate the gained skills in their further studies, including the advanced disciplines on economic and finance, and to make them prepared for professional problem-solving in the international finance area while in their workplaces.

Expected Learning Outcomes

Able to understand the critical role of financial intermediaries and distinguish among among various types of banks. Able to understand the difference between banks and non-bank financial institutions.
Able to understand core principles, issues, and challenges of the contemporary international finance, including the processes of financial globalization, regionalization, and “glocalization” as well as how international financial area is affected by crises and how it is recovered after the crises.
Know the specifics of international foreign exchange, credit, and securities markets, including their structure, instruments, and participants. Know the specifics of international gold markets.
Able to differentiate among various categories of world currencies; understand the reserve currencies; know the specifics of monetary policy and the process of regionalization and integration of international monetary system; and what is the monetary policy trilemma.
Know the specifics of the balance of payments’ structure, the purpose of its accounts, and how they are offset in case of the positive or negative balance of the Balance of Payments.
Understand the specifics and differences among the trade finance instruments, as well as the risks associated with international trade finance transactions.
Understand the specifics of forms and types of international credit; recognize the main differences between international loan syndication and international project finance; know the advantages of international leasing, factoring, and forfaiting for the financial market participants and the development of international trade.
Understand the functions and operational specifics of international financial institutions; able to differentiate between global and regional financial institutions.
Describe financial markets and financial markets participants, interpret their functions. Explain the efficient financial market hypothesis.
Explain the concept of discounting. Apply DCF formula. Calculate Net Present Value (NPV). Explain concept of arbitrage. Define annuity, perpetuity. Apply annuity, perpetuity formulas.
Describe effective annual rate (EAR), annual percentage rate (APR). Discuss differences between EAR and APR. Apply formulas for EAR and APR. Define real interest rate, calculate real interest rate. Discuss term structure of interest rates.
List investment criteria. Define and calculate NPV, IRR, PI, PP, DPP; interpret the results.
Define risk and uncertainty. List main micro-level risks (commercial, market, operational risks), describe them. Explain decision making under uncertainty. Describe diversifiable (idiosyncratic) and non-diversifiable (systematic) risks. Explain risk and return tradeoff.
Define bond and other types of debt. List potential debt issuers. Define purposes of issuing debt. Describe features eurobonds. Describe the bond issuing process. Discuss background of debt markets. Define credit risk, discuss credit risk measurement.
Define shares (stock). List share issuers and their potential purposes. Discuss background of securities markets. Explain IPO process. Discuss dividend policy of the company.
Describe foreign exchange market and its purposes. List participants of the foreign exchange market. List and describe main instruments of the foreign exchange market. Explain hedging.
Describe investment funds, pension funds and their functions. Describe fintech companies and their functions. Define cryptocurrency, discuss its perspectives.
Define exchange rate, list and discuss its determining factors. Explain different exchange rates regimes. Explain and apply purchasing power parity. Explain and apply interest rate parity (covered, uncovered).
Describe international financial regulation system. Discuss regulation of financial markets at the national level. Explain different regulation frameworks and mechanisms. Discuss international regulation of financial markets in the post-crisis period.
Describe, analyze and interpret corporate financial statement
Define shares (stock). List share issuers and their potential purposes. Discuss background of securities markets. Explain IPO process. Discuss dividend policy of the company. Discuss stock valuation. Apply dividend discounting model. Describe financial multipliers, apply them for stock valuation.
Able to understand core principles, issues, and challenges of the contemporary international finance, including the processes of financial globalization, regionalization, and “glocalization” as well as how international financial area is affected by crises and how it is recovered after the crises. Descrive the concept of an international financial institution. Describe international financial institutions as participants in the international finance system.

Course Contents

Introduction to the micro-aspects of international finance
Cash flow discounting
Interest rates
Investment decision making
Micro-aspects of risks in international finance. Risk and return
Financial statement
Banking sector
Debt market
Securities market
Foreign exchange market
Money market funds. Fintech
International financial regulation
Introduction to the macro-aspects of international finance
International monetary system
Exchange rate and exchange rate regimes
Balance of Payments
International capital flows
Macroeconomics and international finance
Government in international finance
Modern trends in international finance

Assessment Elements

Seminars
Сolloquium
Test 2
Test 1
Presentation
Exam
There is a possibility to get an automatic pass on this course.
Mini-quizes

Interim Assessment

2026/2027 4th module
0.1 * Test 1 + 0.3 * Exam + 0.15 * Seminars + 0.15 * Presentation + 0.1 * Test 2 + 0.1 * Mini-quizes + 0.1 * Сolloquium

Bibliography

Recommended Core Bibliography

An introduction to investment banks, hedge funds, and private equity : the new paradigm, Stowell, D. P., 2010
Balance of payments : theory and economic policy, Stern, R. M., 2007
Bank Guarantees in International Trade : The Law and Practice of Independent (First Demand) Guarantees and Standby Letters of Credit in Civil Law and Common Law Jurisdictions, Bertrams, R.I.V.F., 1998
Beyond the World Bank agenda : an institutional approach to development, Stein, H., 2008
Central bank cooperation at the bank for international settlements, 1930-1973, Toniolo, G., 2005
China and the global financial crisis : a comparison with Europe, , 2012
Commercial bank management, Rose, P. S., 2002
Commercial banking : the management of risk, Gup, B. E., 2005
Corporate finance, Berk, J., 2014
Crash and beyond : causes and consequences of the global financial crisis, Farlow, A., 2018
Credit, currency, or derivatives: instruments of global financial stability or crisis?, , 2009
Delusions of development : the World Bank and the post-Washington consensus in Southeast Asia, Carroll, T., 2010
Derivatives, Pirie, W. L., 2017
Dictionary of international trade finance : terms, Hammett, M., 2001
Encyclopedic dictionary of international finance and banking, Shim, J. K., 2001
Financial crises, liquidity, and the international monetary system, Tirole, J., 2002
Financial globalization : growth, integration, innovation and crisis, Das, D. K., 2010
Financial globalization and economic performance, , 2011
Globalization of international financial markets : causes and consequences, Kim, H.- M., 1999
International credit and collections : a guide to extending credit worldwide, , 2001

Recommended Additional Bibliography

Alternative banking and financial crisis, , 2014
Chalmers and Guest on bills of exchange, cheques and promissory notes, Guest, A. G., 1998
Financial globalization and the emerging market economies, Das, D. K., 2012

Authors

PODRUGINA ANASTASIYA VIKTOROVNA

Бакалаврская программа «Мировая экономика»

Адрес

International Finance: micro and macro aspects