The aim of the course of International Finance is to introduce the basic knowledge of international finance from the perspective of managers of Multinational Enterprises and cultivate the leaders of Multinational Enterprises. The course is a practical subject to research the movement rule of international capital. At the very beginning, the basic concepts of foreign exchange and exchange rate and the operation of the international financial market will be introduced. Then the important unique concept of Balance of Payments and BP statement will be explained. Next, the unique theory of international finance ——the international parity conditions will be explored. In the following, the evolution of International Monetary System will be introduced. And more, the knowledge of foreign exchange futures and options will be given. Because the persons who must learn the knowledge of international finance are those conduct multinational operations, English capability is also their necessary skills. Hence, the course will be taught in English so as to provide students an additional chance to practice English and be familiar with the English expression of terms and concepts in field of international finance.
Overview
Syllabus
- 0. Introduction
- 1. Foreign Exchange and Exchange Rate
- 1.1 Foreign exchange
- 1.2 Direct and Indirect Quotation
- 1.3 Bid & Offer Rate
- 1.4 Spread and Point
- 2. Foreign Exchange Market and Eurocurrency Market
- 2.1 The Geographic Extent and Function of Foreign Exchange Market
- 2.2 The Participant of the Foreign Exchange Market
- 2.3 The Size of the Foreign Exchange Market
- 2.4 Eurocurrency market
- 3. Balance of Payments
- 3.1 Definition of Balance of Payments
- 3.2 Typical BOP Transactions
- 3.3 Principle of recording BP accounts
- 3.4 Structure of Balance of Payments
- 3.5 How to record the Balance of Payments Account
- 3.6 Analysis of BP accounts
- 3.7 J curve effect
- 3.8 Capital flight
- 4. International Parity Conditions
- 4.1 The law of one price
- 4.2 Space Arbitrage
- 4.3 Purchasing power parity
- 4.4 Interest-rate parity
- 5. International Monetary System
- 5.1 Introduction of the International Monetary System
- 5.2 Gold standard system
- 5.3 Bretton Woods System
- 5.4. Jamaica System
- 5.5 The impossible trinity
- 5.6 Euro and euro area
- 6. Foreign exchange Futures
- 6.1 Evolution of Futures
- 6.2 Specifications for foreign currency futures contract
- 6.3 Difference between Foreign Currency Futures and Forward contract
- 6.4 The Usage of Foreign Currency Futures
- 7. Foreign Exchange Options
- 7.1 Definition, Price Elements and Types of Foreign currency options
- 7.2 Speculation on spot and forward markets
- 7.3 Speculation on option market
- 7.4 Comparison of currency forward, futures and options
- Final exam
Taught by
Hou Gaolan
