International Finance and Globalization
Category 'Best Course for Career Development'
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type: Elective course
Area of studies: Public Policy and Social Sciences
Delivered by: Faculty of World Economy and International Affairs
When: 3 year, 3, 4 module
Mode of studies: distance learning
Open to: students of one campus
Instructors: Ella Khromova (Fokina), Darya Litvinova
ECTS credits: 3
Contact hours: 32
The course International finance and globalization is an introductory one-module course for third-year undergraduate students. The course is taught in English. Russian is used as supplementary language to explain basic concepts and introduce some Russian terminology. The first part of the course is devoted to with principles of international banking. It compares different banking systems all over the world and discusses the role and rationale of financial intermediation in the economy, the standard tools of risk management for financial institutions, and the regulation of the banking system. The second part deals principles of international finance (capital markets). It covers the essentials of capital budgeting and securities valuation, as well as instruments for construction of a well-diversified portfolio.
- To acquaint students with the principles of the financial theory
- To examine types of financial intermediaries and the ways of their functioning in the modern financial markets
- To identify banking risks and methods of their management, as well as the rationale for their regulation under Basel control
- To highlight the main differences between financial systems across countries and the reasons and consequences of the financial crises
- To study the concept of time value of money by recognizing the principles of present value and discounting
- To evaluate different investment projects and obtain asset pricing skills such as valuation of bonds, stocks and derivatives and the risks they carry
Expected Learning Outcomes
- The main learning outcome of the course is the ability to construct a well-diversified investment portfolio that will have some forecasted risk and return. The portfolio can contain such financial instruments like bonds, stocks and derivatives like options and futures.
- Cross-country comparison of financial systems
- A Nature of Financial intermediation
- Capital Budgeting and Project Valuation
- Financial instruments
- Valuation of Bonds
- Valuation of Stocks
- Construction of a diversified portfolio
- Home assignmentsThe course contains 2 obligatory home assignments after the Banking section and after the Capital markets section of the course. Both Home assignments have equal weights and are evaluated out of 10-point scale. If a student wants to increase her grade she can do an additional (optional) home assignment that may cover up to 10% of the course.
- Participation during lectures and classesStudents are expected to attend every lecture and class and participate by contributing to the in-class discussions and problem solving. Students may prepare to their in-class problems by reading the materials provided at the end of each lecture.
- Group project
- Final written examFinal written exam is held during an exam week. The exam is obligatory and cannot be covered by the cumulative grade. The exam lasts 120 minutes and contains 8 problems that includes some essays and problem- solving tasks similar to home assignments and class problems.
- 2021/2022 4th module0.15 * Participation during lectures and classes + 0.3 * Final written exam + 0.15 * Home assignments + 0.4 * Group project
Recommended Core Bibliography
- Corporate finance, Berk, J., 2007
- Financial institutions management : a risk management approach, Saunders, A., 2018
- Financial markets and institutions, Mishkin, F. S., 2018
- Principles of corporate finance, Brealey, R. A., 2017
Recommended Additional Bibliography
- Modern banking in theory and practice, Heffernan, S., 2001