International Finance

Course Description:

This course povides students with the tools and methods to study, analyze and understand international economic issues and problems.

Contents:

UNIT 1 ? GENERAL OVERVIEW OF MONEY AND ITS PLACE IN OUR LIVES
- Introduction
- Functions of Money
- Time Value of Money
- Creation of Money
- How much money is there? M1, M2, M3 etc?
- Who control the money supply?

UNIT 2 ? THE MONEY ? GO - ROUND
The role of:
- The Family
- The Company
- The Financial Institutions
- The State

UNIT 3 ? FACTORS WHICH INFLUENCE THE MONEY - GO ? ROUND
- Supply & Demand
- Unemployment
- Inflation

UNIT 4 ? THE ROLE OF THE BANKS
-Overall roll of Banks
- Banks and the customer
- Banks and the creation of money
-International Banking

UNIT 5 - THE ROLE OF COMPANIES
-Company characteristics
-Company objectives
-Multinational Finance

UNIT 6 - GLOBALIZATION
-What does Globalization really mean?
-What are the advantages?
-What are the disadvantages?
- How does it affect International Finance?

UNIT 7 ? INTERNATIONAL MONETARY SYSTEM
-Bretton Woods
-Gold Standard to 1970´s
-The IMF

UNIT 8 ? EUROPEAN MONETARY SYSTEM
-The European Union
-A Political, Social and Economic Union
-European Monetary Policy

UNIT 9 ? THE BALANCE OF PAYMENTS
-Import / Export ratios
-Comparative Advantage
-International Settlements

UNIT 10 ? FOREIGN EXCHANGE MARKET
-Principal ?players?
-Exchange Rate Analysis

UNIT 11 ? CURRENCY TRADING
-Future & Options
-Derivatives
-Currency Swaps
-Purchasing Power Parity

UNIT 12 ? THE STOCK MARKET
-How does it work?
-International Trading

UNIT 13 ? FINANCIAL CRISIS
-Causes, effects and potential solutions

UNIT 14 ? CONCLUSIONS & OTHER CONCEPTS

Bibliography:

Along with other selections from primary texts, students will be provided selections from the following sources:

- Cheol S.Eun & Bruce G. Resncik (2004), International Financial Management 3rd Edition. Mc Graw Hill.
- Pilbeam, K. (2006), International Finance. 3rd Edition.

Course Evaluation:

Participation and attitude in class: 10%
Quizzies and Homework Assignments: 20%
Midterm Exam: 25%
Final Exam: 35%
Final Paper: 10%

Final letter grades will be assigned using the following scale, expressed in terms of the percentage of total possible points earned:

9 ? 10 = Sobresaliente
7 ? 8.9 = Notable
5 ? 6.9 = Aprobado
0 ? 4.9 = Suspenso
Attending the course but not taking the exams = No presentado
Missing class more than permitted = No asistencia

Attendance Policy:

Attendance is obligatory. More than four hours of unexcused absence from class will endanger an officially certified completion of the course (grading + certificate). Medical absences are excused with the prompt receipt of proper documentation. It is expected that students arrive to class on time and that they return promptly to class after any given class break. Tardiness is figured into the absence policy.

Class Protocol:

Students are required to be involved in class activities. They are expected to show their preparation by participating in discussions, by asking relevant questions, being critical and analytical with the contents presented in class as well as by sharing their ideas and opinions. In class the student is required to maintain a polite demeanor always and under every circumstance. Students are asked not to eat in class and to put their cell phones on silence. With the exception being for class presentations, laptops are not to be used in class.