- explanation of up-to-date theories of international nance and on its practical real world applications.
- Multinational Financial Management and Globalized Worldgrowth of international trade; globalization of financial markets; goal and organizational structure of the MNC; important international players; globalization and MNC: benefactor or menace?
- International Financial Marketsi. Balance of Payments (Concepts and terminology; surpluses and deficits in the BOP Accounts; dynamics of the BOP) ii. Foreign Exchange Market (Market players; Organization of FOREX market; Spot rates, Forward rates; Interest rate parity, PPP and real exchange rates; Foreign exchange intervention, exchange rate systems)
- International Capital Markets(a) International debt nancing (Global sources of funds, characteristics of debt in- struments, world's bond market, international bank loans, cost of debt) (b) International equity nancing (International stock markets, cross-listing and de- positary receipts, strategic alliances) (c) International capital market equilibrium (Risk and return of international in- vestments, international diversication, optimal portfolio allocation, international CAPM, integrated versus segmented markets)
- Multinational Capital Structure and Capital BudgetingNPV, nancial side eects, real options, parent versus subsidiary cash ows
- Risk Management and Hedging(a) Forecasting exchange rates (Parity conditions and exchange rate forecasts, com- mon forecasting techniques, fundamental forecasting, technical analysis, evaluat- ing forecasts), Measuring and managing real exchange risk (b) Foreign currency futures and options, foreign currency swaps (c) Forward markets and transaction exchange risk (hedging transaction exposure, forward foreign exchange market) (d) Managing economic and translation exposure (assessing economic exposure and restructuring to reduce economic exposure; hedging with forward contracts) (e) Country risk analysis (country and political risk analysis, measuring country risk, assessment of political risk in nancial decisions) (f) Risk Management and the Foreign Currency Hedging Decision (arguments against and for hedging, hedging in real world, hedging trends) (g) Financing International Trade (fundamental problem with international trade, documents, methods of payments, nancing exports, countertrade)
- Systemic Risk
- Interim assessment (1 semester)0.45 * Assignments + 0.2 * Group Project/Presentations + 0.35 * Term paper and defense of your project
- Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2015). International Economics: Theory and Policy, Global Edition (Vol. Tenth edition, global edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1419045
- Maurice Obstfeld, & Kenneth S. Rogoff. (1996). Foundations of International Macroeconomics. The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.mtp.titles.0262150476
- Geert Bekaert, Campbell R. Harvey, & Christian Lundblad. (2005). Does financial liberalization spur growth. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.3EA485E8
- Nicholas Bloom, John Van, & Reenen Costas Meghir. (2009). The Impact of Uncertainty Shocks. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.96AE1765