FIN817S International Finance A

School of Business Administration in Karvina
Winter 2008
Extent and Intensity
0/2/0. 5 credit(s). Type of Completion: zk (examination).
Guaranteed by
prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
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
Course objectives (in Czech)
The aim of the course is to introduce and explain the basic features of international finance and international financial system. 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. The attention will be paid on specific implications of international finance on financial management of companies.
Syllabus (in Czech)
  • Structure of the Course:
    1. Balance of payments
    A principle of balance of payments, credits and debits, residents and non residents. Vertical and horizontal structure, partial and cumulative balances. Current account, financial account, capital account, errors and omissions, changes in foreign exchange reserves. Examples of major credit and debit transactions, their recording and construction of a simple version of balance of payments.
    2. The foreign exchange market
    Main features of the foreign exchange market, methods of trading and most important financial centers. Differences between retail and inter-bank foreign exchange market. Spot and term operations. Covered interest parity. Foreign trade financing, hedging, speculation, arbitrage. Process of exchange rate quotation, direct and indirect quotation, cross exchange rates. Financial operations of companies on the foreign exchange market.
    3. Exchange rates and their determination
    Types of exchange rates, nominal and real exchange rate. Simple model of exchange rate determination, foreign exchange supply and demand. Nominal interest rates as a leading factor influencing exchange rate development in the short-run, uncovered interest parity. Purchasing power parity and exchange rate in long term period. Law of one price and basic variants of the purchasing power parity. Consequences of exchange rate changes on companies' business.
    4. International movement of capital
    Typology of investment and classification on portfolio, direct and other investment. Motives and risks of investing abroad. Foreign direct investment as a driving force of globalization. Analysis of benefits and drawbacks of foreign investments for an investor and for a host country. Present situation and recent development of foreign investments.
    5. Financial Derivatives
    Introduction to the principles of financial derivatives, history and recent development of derivatives markets. Comparison of basic types of financial derivatives - futures, options swaps. Differences between standardized and over-the-counter derivatives. A principle and methods of derivatives' usage in hedging and speculation including possibilities of financial derivatives' use in financial management of companies.
Literature
    recommended literature
  • CRUM, RL., BRIGHAM, EF., HOUSTON, JF. Fundamentals of International Finance. Mason, OH: South-Western, 2005. info
  • ANTHONY, S. Foreign Exchange in Practice. The New Environment. Houndmills: Palgrave, 2003. ISBN 1-4039-0174-0. info
  • SHAPIRO, AC. Multinational Financial Management. Boston, etc: John Willey & Sons, 2002. ISBN 0-471-39530-7. info
  • CUTHBERSTON, K., NITZSCHE, D. Investments - Spot and Derivatives Markets. Chichester, etc.: John Wiley and Sons, 2001. ISBN 0-471-49583-2. info
  • EITEMAN, DK., STONEHIL, AI., MOFFETT, MH. Multinational Business Finance. 9th ed. Boston: Addison Wesley Longman, 2001. ISBN 0-201-63538-0. info
  • KRUGMAN, PR., OBSTFELD, M. International Economics: Theory and Policy. 5th ed. New York: Addison Wesley, 2000. ISBN 0-321-03387-6. info
  • MELVIN, M. International Money and Finance. 6th ed. Reading (MA), etc.: Addison Wesley Longm, 2000. ISBN 0-321-05051-7. info
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Winter 1990, Summer 1991, Winter 1991, Summer 1992, Winter 1992, Summer 1993, Winter 1993, Summer 1994, Winter 1994, Summer 1995, Winter 1995, Summer 1996, Winter 1996, Summer 1997, Winter 1997, Summer 1998, Winter 1998, Summer 1999, Winter 1999, Summer 2000, Winter 2000, Summer 2001, Winter 2001, Summer 2002, Winter 2002, Summer 2003, Winter 2003, Summer 2004, Winter 2004, Summer 2005, Winter 2005, Summer 2006, Winter 2006, Summer 2007, Winter 2007, Summer 2008, Summer 2009, Winter 2009, Summer 2010, Winter 2010, Summer 2011, Winter 2011, Summer 2012.
  • Enrolment Statistics (Winter 2008, recent)
  • Permalink: https://is.slu.cz/course/opf/winter2008/FIN817S