114-0322/04 – International Finance (MF)

Gurantor departmentDepartment of EconomicsCredits3
Subject guarantordoc. Ing. Aleš Melecký, Ph.D.Subject version guarantorIng. Karel Hlaváček, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory
Year1Semesterwinter
Study languageCzech
Year of introduction2009/2010Year of cancellation2010/2011
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
HLA31 Ing. Karel Hlaváček, Ph.D.
POL01 prof. RNDr. PhDr. Stanislav Polouček, CSc.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 2+0

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:

KRUGMAN, P.R, OBSTFELD, M., MELITZ, M.J. International Economics: Theory and Policy, Global Edition. Harlow: Pearson Education Limited, 2018. ISBN: 978-1-292-21487-0.

Recommended literature:

MELECKY, M. Choosing the currency structure for sovereign debt: A review of current approaches. World Bank Policy Research Working Paper, No. 4246. 2007. Washington: The World Bank. Chapter 17 (Global Financial Crisis of 2008 and Beyond) in STONECASH, R., LIBICH, J., GANS, J, KING, S, BYFORD, M., and MANKIW, G. Principles of Macroeconomics: Australian Edition. 6th edition, South Melbourne: Cengage Learning Australia, 2014. ISBN 9780170248518, 536pp.

Way of continuous check of knowledge in the course of semester

E-learning

Další požadavky na studenta

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

Full-time form (validity from: 2009/2010 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination 100  51
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2010/2011 (N6202) Economic Policy and Administration (6210T004) European Integration (00) European Integration P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T027) National Economy (00) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 1 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 2 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T027) National Economy (00) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 2 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 1 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration P Czech Ostrava 1 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 2 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T055) Public Economics and Administration P Czech Ostrava 2 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6210T004) European Integration (00) European Integration P Czech Ostrava 2 Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner