FIUNAIFA International Business Finance

School of Business Administration in Karvina
Summer 2023
Extent and Intensity
1/1/0. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Jana Šimáková, Ph.D. (lecturer)
Guaranteed by
Ing. Jana Šimáková, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA
Timetable
Tue 13:05–13:50 B208
  • Timetable of Seminar Groups:
FIUNAIFA/01: Tue 14:45–15:30 B208, J. Šimáková
Prerequisites
FAKULTA(OPF) && TYP_STUDIA(N) && FORMA(P)
None
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 10 student(s).
Current registration and enrolment status: enrolled: 1/10, only registered: 0/10
fields of study / plans the course is directly associated with
Course objectives
The aim of the course is to introduce and international finance and international financial system from the business and financial management perspective. The student will gradually get acquainted with the most important indicators of external economic position such as balance of payments, exchange rate, foreign investments and their mutual links. The course also covers topics as international financial markets and financial derivatives.
Syllabus
  • 1. International Financial Environment
    Introduction of the international financial system and description of the main development phases. Gold standard. Bretton Woods system. Post Bretton Woods system. Contemporary financial system.
    2. International financial institutions
    Explanation of the position and role of selected international financial institutions such as central banks, International Monetary Fund and World Bank. Monetary integration in the European Union and effects of the euro currency and Eurozone on the international financial system.
    3. Foreign Exchange Market and Exchange Rates
    Description of the foreign exchange market and introduction of the key transactions, ways of trading and development trends. Explanation of spot and term contracts and their application in financial management. Classification of exchange rates and exchange rate arrangements in the world. Analysis of the recent development of the major currencies and their exchange rates.
    4. International Trade and Investments
    The basics of international trade with goods and services. International movement of capital in form of direct and portfolio investments. Factors motivating investing abroad, effect of foreign direct investment on host country. Risks associated with investing in foreign countries. Balance of payments as elementary statistical evidence of international trade, investments and other international economic transactions. Interpretation of balance of payment situation and development in major world economies.
    5. International Business Financing
    Sources and uses of funds in multinational corporation. Issue of shares and bonds on national and international financial markets. International banks as providers of loans for multinational corporations. Process of obtaining a loan, syndicate lending, eurocurrency markets, Eurobonds. Venture capital, hedge funds and sovereign wealth funds as sources of capital. The cost of capital in multinational corporation, establishing of a worldwide capital structure and valuing low-cost financing opportunities.
    6. International Financial Risk Management
    Foreign exchange risk and economic exposure, identifying and calculating economic exposure. Operating exposure and its management. Translation and transaction exposures and their management. Comparison of basic types of financial derivatives - futures, options, swaps. Using derivatives in hedging and speculation. Comparison of using the derivatives in selected countries and identification of the cross-country differences. .
Literature
    required literature
  • STAVÁREK, D. International Finance: Theory and Practice in Transition Countries. Karviná:SU OPF, 2005. ISBN 80-7248-290-4. info
    recommended literature
  • SHAPIRO, A. C. Multinational Financial Management. 10th ed. Wiley, 2013. ISBN 978-1118572382. info
  • DeGRAUWE, P. Economics of Monetary Union. 8th ed. Oxford: Oxford University Press, 2009. ISBN 0-199-56323-3. info
  • KRUGMAN, P.R., OBSTFELD, M. International Economics: Theory and Policy. 8th ed. New York: Addison Wesley, 2009. ISBN 1-408-820807-5. info
  • SERCU, P. International Finance. Theory and Practice. Princeton: Princeton University Press, 2009. ISBN 978-0-691-13667-7. info
  • BAIMBRIDGE, M., WHYMAN, P. Economic and Monetary Union in Europe. Cheltenham: Edward Edgar, 2003. ISBN 1-84542-233-3. info
Teaching methods
Skills demonstration
Seminar classes
Assessment methods
Written exam
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
Teacher's information
Requirements: ongoing test, case studies
Assessment: ongoing test (20 % of grade), case studies (20 % of grade), final written exam (60 % of grade)
The course is also listed under the following terms Winter 2015, Summer 2016, Winter 2016, Summer 2017, Winter 2017, Summer 2018, Winter 2018, Summer 2019, Summer 2020, Summer 2021.
  • Enrolment Statistics (recent)
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