114-0522/03 – International Finance (IF)

Gurantor departmentDepartment of EconomicsCredits4
Subject guarantordoc. Ing. Aleš Melecký, Ph.D.Subject version guarantordoc. Ing. Aleš Melecký, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year2Semesterwinter
Study languageEnglish
Year of introduction2013/2014Year of cancellation2020/2021
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
HLA31 Ing. Karel Hlaváček, Ph.D.
LIB009 prof. Dr. Ing. Jan Libich
LOK02 Ing. Aleš Lokaj, Ph.D.
MEL044 doc. Ing. Aleš Melecký, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+1

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
Individual consultations

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, Paul R., Maurice OBSTFELD a Marc MELITZ. International Economics: Theory and Policy. 12th ed. Harlow: Pearson, 2023. 824 s. ISBN 978-1292409719. MADURA, Jeff. International Financial Management. 14th ed. Boston: ‎ Cengage Learning, 2020. 736 s. ISBN 978-0357130544. REINERT, Kenneth A. An Introduction to International Economics: New Perspectives on the World Economy. 2nd ed. Cambridge:Cambridge University Press, 2020. 276 s. ISBN 9781108470056.

Recommended literature:

EITEMAN, David K., Arthur I. STONEHILL a Michael H. MOFFET. Multinational Business Finance. 15th. ed. Harlow: Pearson, 2020. 640 s. ISBN 978-1292270081. MANKIW, N. Gregory. Brief Principles of Macroeconomics. 9th. ed. Boston: Cengage Learning, 2020. 480 s. ISBN 978-0357133507. MOFFET, Michael H., Arthur I. STONEHILL a David K. EITEMAN. Fundamentals of Multinational Finance. 6th ed. Harlow: Pearson. 2021. 608 s. ISBN 978-1292215211.

Way of continuous check of knowledge in the course of semester

Method of course completion •Credit — test (maximum 30 points, required at least 16 points). •Exam — maximum 70 points, minimum not specified. •In total, you have to obtain at least 51 points to pass this subject.

E-learning

Other requirements

Nejsou 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: 2013/2014 Winter semester, validity until: 2020/2021 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of pointsMax. počet pokusů
Exercises evaluation and Examination Credit and Examination 100 (100) 51
        Exercises evaluation Credit 30  16
        Examination Examination 70  0 3
Mandatory attendence participation: not specified

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2019/2020 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2017/2018 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 2 Choice-compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2016/2017 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 2 Choice-compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2015/2016 (N6208) Economics and Management (6208T062) Marketing and Business P English Ostrava 2 Choice-compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 2 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction



2017/2018 Winter