114-0322/04 – International Finance (MF)
| Gurantor department | Department of Economics | Credits | 3 |
| Subject guarantor | doc. Ing. Aleš Melecký, Ph.D. | Subject version guarantor | Ing. Karel Hlaváček, Ph.D. |
| Study level | undergraduate or graduate | Requirement | Choice-compulsory |
| Year | 1 | Semester | winter |
| | Study language | Czech |
| Year of introduction | 2009/2010 | Year of cancellation | 2010/2011 |
| Intended for the faculties | EKF | Intended for study types | Follow-up Master |
Subject aims expressed by acquired skills and competences
- To interpret topics of international finance, its theoretical backgrounds and real events.
- To explain impacts of exchange rate risk in company and discuss possibilities of measuring and managing exposures.
- To design possible ways of financing through instruments that are offered in the international financial markets.
- To argue advantages and disadvantages of various forms of international investments.
- To evaluate process of financial crises - its causes, symptoms and consequences - including possibilities of their forecasting.
Teaching methods
Lectures
Seminars
Summary
This course deepens knowledge gained in basic courses of economics and finance
of themes of financial relations, which take place among the subjects of
international markets. The central themes of the course are selected topics
from the international finance. These topics cover particularly foreign
exchange markets, global markets of debt financial instruments, financial
management of multinational corporations, financial crisis, determination and
forecasting of exchange rates.
Compulsory literature:
Recommended literature:
Way of continuous check of knowledge in the course of semester
E-learning
Other requirements
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1. Introduction to foreign exchange markets.
- Exchange rates and quotation.
- Function and structure of forex markets.
- Interbank forex market.
- spot and forward transactions
2. Forward and swaps.
- Evolution of forward transactions.
- Forwards.
- Swaps.
- Comparison with other currency derivates (fututres, options).
3. Foreign exchange risk and exposure.
- Characteristics of FX risk and exposure.
- Transaction exposure.
- Translation exposure.
4. Globalisation of financial markets and international banking.
- Development of financial markets.
- New forms of international financing.
- Recent trends in development of international financial system.
5. Eurocurrency markets and eurocredits.
- Development of Eurocurrency instruments.
- Forms of eurocredits.
- Euronotes markets.
6. Eurobonds.
- Eurobond market.
- Types of eurobonds.
- Subjects of Eurobond markets.
7. Organisation of Eurobond issues.
- Procedures of an Eurobond issue.
- Costs of Eurobond issues .
- Global bonds.
8. International share markets.
- Share issues at foreign markets.
- Foreign share markets.
- Global shares.
9. International portfolio investments.
- International investments and risk diversification.
- Foreign investments and CAPM.
- Selection of international portfolio.
10. Foreign direct investments.
- International capital budgeting.
- Country risk analysis .
- International taxation.
11. Models of exchange rate determination.
- Assets market model.
- Determination in long run.
- Modern theories of exchange rate determination.
12. Exchange rates management.
- Exchange rate regimes.
- Theoretical approaches to exchange rates managing.
- Currency interventions and their effectiveness.
13. Financial crises.
- Characteristics of financial crises.
- Analysis of financial crises.
- Forecasting models.
14. Balance of payments.
- Balance of payments‘categories.
- Adjusting of the balance of payments.
- Sustainability of current account deficits.
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction