OPF:FIUBAMEZ International Finance - Course Information

FIUBAMEZ International Finance

Extent and Intensity

2/1/0. 6 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
Contact Person: Ing. Irena Szarowská, Ph.D., MPA

Timetable

Mon 10:35–12:10 A318

• Timetable of Seminar Groups:

FIUBAMEZ/01: Mon 12:15–13:00 A318, D. Stavárek

Prerequisites

FAKULTA(OPF) && TYP_STUDIA(B) && FORMA(P)
None

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 24 student(s).
Current registration and enrolment status: enrolled: 0/24, only registered: 0/24

fields of study / plans the course is directly associated with

• Banking (programme OPF, B_HOSPOL)

Course objectives

The course provides principal information and knowledge on international monetary system. The emphasis is placed on understanding of practical aspects of foreign exchange market, quotation and determination of exchange rates, balance of payments and international capital flows.

Syllabus

• 1. Multinational corporations and international environment
  Institutional environment of multinational corporations, impact of legal rules and government institutions on firm behavior and financial decisions. Topical issues related to national debt, international trade, and currency valuation. Recent financial crisis and reforming the international financial system.
  2. 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.
  3. International parity conditions and exchange rate determination
  Simple model of exchange rate determination, supply and demand on foreign exchange market, impact of international trade on foreign exchange supply and demand. Interest rates as a determinant of exchange rates in short-term. Covered and uncovered interest rate parity, interest rate arbitrage. Purchasing power parity and determination of exchange rates in long-term. Law of one price, version of purchasing power parity, Ballassa-Samuelson effect.
  4. Balance of payments, 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. Exchange rate risk
  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

recommended literature
• EITEMAN, D.K., STONEHIL, A.I., MOFFETT, M.H. Multinational Business Finance (12th ed.). New York: Pearson, 2010. ISBN 978-0-1361-2156-5. info
• PILBEAM, K. International Finance. Houndmills: Palgrave Macmillan, 2006. ISBN 1-4039-4837-2. info

Teaching methods

Skills demonstration
Seminar classes

Assessment methods

Written exam

Language of instruction

English

Further comments (probably available only in Czech)

Study Materials
The course can also be completed outside the examination period.

Teacher's information

attendance in seminars 25 %, seminar paper, discussion, ongoing test, final witten exam

Activity	Difficulty [h]
Other study activities	95
Lecture	26
Seminar	13
Exam	40
Summary	174

• Enrolment Statistics (Winter 2020, recent)
  
• Permalink: https://is.slu.cz/course/opf/winter2020/FIUBAMEZ