The subject of International Finance is one of the important majors of finance with the increasing internationalization of global finance . There are one introduction and six chapters for the subject,with the latter is designed into six teaching modules. These teaching modules examine the international financial management from both the macroeconomic and microeconomic perspectives, which helps the students or learners gain a broader view of international finance. The macroeconomic perspective analyzes three modules such as balance of payments management, international monetary management, and management of internal and external balance. The microeconomic perspective, on the other hand, explains another three modules, including exchange exposure management, international investment management as well as international financing management.
Specifically, Chapter one examines the management of balance of payments by introducing the national economic accounting of balance of payments, comparing the balance of payments statement with the international investment position, explaining the macromeanings of current account balance and official settlement balance, and illustrating the classical theories of balance of payments, such as the elasticity approach, multiplier approach, absorption approach and monetary approach as well.
Chapter two focuses on the international monetary management. It summarizes the evolution and reform of international monetary system, examines the management of international price of currency such as the international exchange rate regimes and the determination of exchange rate, and ends up with the discussion of the international reserve management.
Chapter three examines the management of internal and external balance mainly with the Mundell-Fleming model. It places emphasis on the effectiveness of the official intervention to defend the fixed exchange rate, and on the analysis of the management of internal and external balance in the cases of internal and external shocks under both fixed and floating exchange rate regimes, respectively. These shocks usually refer to monetary shocks, spending shocks, international capital flow shocks, and international trade shocks.
Chapter four focuses on the foreign exchange exposure management. It lists the main categories of exchange exposure, introduces a wide array of financial transactions, particularly foreign exchange transactions, to cover exchange exposure, and explains some financial contracts, operational techniques and proper strategies to manage three main types of exchange exposure, including transaction exposure, operating exposure, and translation exposure as well.
Chapter five examines the management of the two kinds of international investment, including international portfolio investment and international capital budgeting. It demonstrates the optimal domestic portfolio and optimal international portfolio, followed by the explanation of international diversification and portfolio risk. It also explains the techniques and rationale of multinational capital budgeting.
Chapter six examines the management of the availability and cost of international finance. On the one hand, it depicts the main sources of finance raised by international businesses. On the other hand, it analyzes the weighted average cost of capital of international businesses, and explains the optimal international financial structure to minimize the WACC.
The co-lecturers come from both China and United States. The leading lecturer is Xu Dai, who is an associate professor in School of Finance in Jilin University of Finance and Economics. She’s got the master degree in Finance and Ph.D in international finance, both in Jilin University which is the ninth largest university in China. She was the visiting scholar in Charles Sturt University in Australia in 2005 and in University of Alaska Anchorage in 2016. She had been working in the international business department in one of the four largest commercial banks in China, the Industrial and Commercial Bank of China for over eight years before she came back to the university in November 2011. She has been teaching the subjects such as international finance, corporate finance, investments, financial management, financial planning and financial English for about 19 years. Her major research interests are international finance, commercial banks and rural finance.
Another lecturer is John R. Nofsinger who is a professor in finance and the dean of the Department of Business and Public Policy in the University of Alaska Anchorage. He is a well-known world-class expert of investor psychology and behavioral finance. He’s got Ph.D in finance in Washington State University . He has been the Seward chair in international finance for many years. He had been teaching in Marquette University and Washington State University.
