Course detail

International Finance

FP-ifPAcad. year: 2011/2012

Introduction to International Finance
• Exchange Rate – the Basics Issues
• The International Monetary System
• The Role of Euro in the International Financial System
• The Balance of Payments
• International Financial Markets
• International Financial Institutions
• The Financial System of European Union
• Exchange Rate Risk and Forecasting
• Globalization of Finance

Language of instruction

English

Number of ECTS credits

6

Mode of study

Not applicable.

Guarantor

prof. Ing. Mária Režňáková, CSc.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

a) Develop an ability to identify the most important problems with international corporate finance
b) Analyze critically the functioning of financial markets and financial institutions in the European Union
c) Asses critically the consequences of the globalization of finance for the economy and for a company
d) Explain the different sources of financing the multinational corporation
e) Evaluate international investment decisions
f) Equip students with contemporary methods to manage foreign exchange rate risk

Prerequisites

Successful completion of the course is conditional on the knowledge of financial mathematics, makroeconomie and business economics.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

Module will be evaluated on the basis of:
I. Final Exam - 50% of final grade (the comprehensive final exam covering the entire module)
II. Presentation of Papers - 50% of final grade (The short papers will be written in English. They will regard different topics related to the module material.)

Course curriculum

a) International corporate finance - national versus international finance, the rise of multinational corporation, the process of overseas expansion, designing a global expansion strategy
b) Corporate finance and the financial system of European Union - the process of the integration of the financial markets and financial institution in EU and their importance for companies, the European single currency and multinational business
c) Exchange rate risk - forecasting and management, hedging currency risk with derivatives
d) Global financing - debt and equity markets, international banks and project financing, financing in Europe, America and Asia
e) Foreign investment – corporate strategy and foreign investment analysis, direct investment and portfolio investment, investment in Europe, America and Asia
f) Cost of capital and capital structure of the multinational firm, multinational capital budgeting
g) Taxes and multinational business strategy
h) Globalization of finance - international capital mobility - benefits vs. risks

Work placements

Not applicable.

Aims

a) To provide students with understanding of the theory and practice of finance in multinational companies in an age of globalization.
b) To equip students with knowledge of financial system of the European Union and the role of Euro and their importance for international business.
c) To equip students with knowledge how to finance business in the EU and overseas.
d) To enable the students to gain skills in international investment.
e) To gain competence in the management of foreign exchange rate risk involved in international financial management.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme MGR-EBF Master's

    branch MGR-EBF , 1 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

prof. Ing. Marek Zinecker, Ph.D.

Syllabus

• Introduction to International Finance
National vs. International Finance
The Rise of Multinational Corporation
The Process of Overseas Expansion
Designing a Global Expansion Strategy
Foreign Investment Analysis
Multinational Financial Management
Managing Multinational Operations
• Exchange Rate – the Basics Issues
Definition of Foreign Exchange Rate
Types of Foreign Exchange
Economical Effects of Exchange Rate Changes
Convertibility of Foreign Exchange
• The International Monetary System
Exchange Rate Systems and their Classification
The Post-War International Monetary System
European Monetary System
• The Role of Euro in the International Financial System
• The Balance of Payments
Definition and Components
Surplus and Deficit
International Statistics
• International Financial Markets
The Foreign Currency Markets
Money Markets
International Bond Market
International Equity Markets
International Derivatives Markets
Euromarkets
Financing the Multinational Corporation
The Cost of Capital for Foreign Investments
• International Financial Institutions
International Banking
International Financial Institutions:
IMF
The World Bank
The International Financial Corporation
The Multilateral Investment Guarantee Agency
Others International Financial Institutions
• The Financial System of European Union
The Process of the Integration of the Financial Markets and Financial Institution in European Union
The Role of European Central Bank
• Exchange Rate Risk and Forecasting
Exchange Rate Forecasting
Taxonomy of Exposures to Foreign Exchange Risk
Foreign Exchange Risk Management:
Managing Transaction and Translation Exposure to Exchange Risk
Managing Operating Exposure to Exchange risk
• Globalization of Finance
Indicators of Financial Globalization
The Consequences of Financial Globalization
International Capital Mobility - Benefits vs. Risks
Financial Crises in the Nineties

Exercise

13 hod., optionally

Teacher / Lecturer

Ing. Kristína Sághy Estélyi, Ph.D.

E-learning texts

BOP_1993_2015
BOP_2011_2014_aj.xlsx 0.01 MB
Inflation report_III_2016
Inflation report_CNB_III2016.pdf 3.33 MB
IF_1_lecture
BOP_1_přednáška.ppt 0.49 MB
BOP_2011_2015
BOP_2011_2014_aj.xlsx 0.01 MB