OPF:FINNPIFA International Business Finance - Course Information

FINNPIFA International Business Finance

Extent and Intensity

1/1/0. 4 credit(s). Type of Completion: zk (examination).

Teacher(s)

prof. Ing. Daniel Stavárek, Ph.D. (lecturer)
prof. Ing. Daniel Stavárek, Ph.D. (seminar tutor)

Guaranteed by

prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina

Prerequisites (in Czech)

K absolvování předmětu nejsou vyžadovány žádné podmínky a předmět může být zapsán nezávisle na jiných předmětech

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.

fields of study / plans the course is directly associated with

• Banking (programme OPF, N_HOSPOL)

Course objectives (in Czech)

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 (in Czech)

• 1. International monetary system
  2. International financial institutions
  3. History of European monetary integration
  4. Foreign exchange market
  5. Exchange rates
  6. Exchange rate regimes
  7. International movement of capital
  8. Foreign investment in Central Europe
  9. Balance of payments
  10. International economic relations in Central Europe
  11. Foreign exchange risk
  12. Currency derivatives
  13. International business financing
  1. International monetary system
  Definition of the international monetary system and description of its evolution. Gold standard, Brettonwood system, post-brettonwood arrangement and present international monetary system.
  2. International financial institutions
  International Monetary Fund, World Bank Group, European Bank for Reconstruction and Development. Description of the organizational structure, tools, products, activities and results.
  3. History of European monetary integration
  History of European economic and monetary integration, benefits and drawbacks. Role of the euro currency and European Central Bank in the international financial system.
  4. Foreign exchange market
  Description of the foreign exchange market, methods of trading and most important financial centres. Spot and term operations. Foreign exchange market in Central Europe.
  5. Exchange rates
  Types of exchange rates, nominal and real exchange rate. Spot and forward exchange rate, quotes of exchange rate. Essential theories of exchange rate determination.
  6. Exchange rate regimes
  Typology of the exchange rate regimes, comparison of their pros and cons. Changes of the exchange rate arrangements during the economic transformation. Implications for hedging and international trade.
  7. International movement of capital
  Typology of investment. Motives and risks of investing abroad. Foreign direct investment as a driving force of globalization, benefits and drawbacks.
  8. Foreign investment in Central Europe
  Benefits and drawbacks of foreign investments for an investor and for a host country. Current situation and a recent development of foreign investments in the central and eastern European countries.
  9. Balance of payments
  Principle of balance of payments, vertical and horizontal structure, partial and cumulative balances. Current account, financial account, capital account, foreign exchange reserves.
  10. International economic relations in Central Europe
  Development of the Central and Eastern European countries' balances of payments and analysis of their external macroeconomic equilibrium. Main development trend in international trade and investment position.
  11. Foreign exchange risk
  Foreign exchange risk and economic exposure, identifying and calculating economic exposure. Operating exposure and its management. Translation and transaction exposures and their management.
  12. Currency derivatives
  Comparison of basic types of financial derivatives - futures, options swaps. Using in hedging and speculation. Financial derivatives in transition countries.
  13. International business financing
  Corporate sources and uses of funds, national capital markets and international financial centres. International financial intermediaries, project financing, venture capital.
  

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. 9th ed. Hoboken: John Wiley and Sons, 2010. ISBN 978-0-470-45035-2. 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

Activity	Difficulty [h]
Ostatní studijní zátěž	50
Přednáška	13
Seminář	13
Zkouška	40
Summary	116

• Enrolment Statistics (Summer 2013, recent)
  
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