International Finance (in English)

ISA Study Center with Universidad Internacional Menéndez Pelayo-Sevilla

Course Description

  • Course Name

    International Finance (in English)

  • Host University

    ISA Study Center with Universidad Internacional Menéndez Pelayo-Sevilla

  • Location

    Seville, Spain

  • Area of Study

    Finance, International Studies

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    Course Description:

    The scope and content of international finance have been fast evolving due to deregulation of financial markets, product innovations, and technological advancements. As capital markets of the world are becoming more integrated, a solid understanding of international finance has become essential for astute corporate decision making. The reflection and growth in importance of international finance as a discipline can be seen in the sharp increase in the demand for experts in this area, both in the corporate and academic spheres.

    This course provides students with the tools and methods to study, analyze and understand international economic issues and problems. Considering that any subject is better learned if one first is well grounded in the basics, including theoretical context and historical case studies.

    Consequently, we initially devote several chapters to the fundamental concepts of international finance. After these are understood, the remaining material flows easily from them. The course will then focus on more advanced topics, including their relationship with the fundamentals. By doing this, we believe students will be given a framework for analysis that will serve them well when they need to apply this material in their future careers.

    The course never loses sight that it is teaching students how to make managerial decisions. Therefore the course is founded in the belief that the fundamental job of the financial manager is to maximize shareholder wealth.

    The course will be taught in a seminar style, with a combination of lecture and discussion. We will also have movies and/or documentaries to supplement the readings. Students are expected to actively follow international business affairs by reading international prestigious media like: BBC (www.bbc.com). Der Spìegel (www.spiegel.de) (English edition).

    Learning Outcomes:

    - Evaluate empirical evidence of market performance, and contrast it with theories of market performance.

    - Research, monitor and analyze specific problems or issues related to financial markets and institutions.

    - Develop financial-based perspective when analyzing risks, costs and decision making, in order to solve problems.

    - Explore the global integration of international financial markets and analyze the implications for financial managers.

    - Determine and analyze the appropriate measures of risk and return for various financial instruments and understand the mechanics and regulation of financial intermediaries and securities exchanges

    Contents:

    Unit 1: General overview of money and its place in our lives

    · Introducing money and the financial system

    · Key components of the financial system

    o Financial assets

    o Financial intermediaries

    o The financial regulators

    · The financial crisis of 2007-2009

    Unit 2: Money and the payments systems

    · Do we need money?

    · Types of money

    · Key functions of money

    · The role of banks

    · Creation of money

    · Money transactions: from gold pellets to E cash

    Unit 3: Money supply

    · Monetary aggregates

    · Money supply control

    · Instruments of monetary policy

    · The quantity theory of money

    Unit 4: Interests rates and rates of return

    · The interest rate, present value and future value

    · Debt instruments

    · Bond prices and yield to maturity

    · Interest rates and rate of returns on debt instrument investments

    · Nominal vs real interest rates

    Unit 5: The stock market

    · Stocks and the stock market

    · Types of stock

    · Stock trading

    · Stock price determination

    o Short term pricing

    o Long term pricing, the Gordon growth model

    o Rational expectations and efficient markets

    Unit 6: Derivatives and the derivatives markets

    · Derivatives, hedging and speculation

    · Forward contracts

    · Futures contracts

    · Reading financial futures listing

    · Options

    · Swaps

    Unit 7: The market for foreign exchange

    · Forex main players

    · Exchange rates and trade

    · Currency trading

    · Forex market operations

    o Reading forex quotations

    o Forex cross rates

    o Triangular arbitrage

    Unit 8: The European monetary system

    · The making of a currency

    · Convergence criteria

    · European union monetary policy and stability pact

    Unit 9: The shadow banking system

    · Investment banks

    · Mutual funds

    · Hedge Funds

    o Hedge funds strategy

    · Pension funds

    · Finance companies

    o Insurance companies

    o Consumer finance

    Unit 10: The international monetary system

    · Bimetallism

    · The classical gold standard

    · Inter war period

    · The Bretton Woods system

    · Floating system

    Unit 11: Financial crisis

    · Causes

    · Effects on real economy

    · Solutions

    Course Material:

    Non-programmablecalculator

    E-learning platform:Money, Banking and the Financial System, plus MyEconLab with Pearson eText, International Edition, 2/E.

    Everysinglestudent mustpurchase a personal code for access to the online platformfrom where all the coursemanagement (eText, assingments, reviews, activities,etc) will take place.

    Registration codes available from ISA admin office. Your instructor will guide you in the registration process. Usually one week after instruction begins

    Course Evaluation:

    20% Tasks and attendance 40% Final exam 30% Projects 10% Subjective evaluation (students are expected to come prepared to class and professor will value that students are showing a mark of improvement)

    Spanish Grading Scale:

    Matrícula de Honor 10 Sobresaliente 9 – 9,9 Notable 7 – 8,9 Aprobado 5 – 6,9 Suspenso 0 – 4,9 No Asistencia (Student has exceeded the allowed number of unexcused absences)

    Please find as a reference the following grading scale conversion. However, it is ultimately the responsibility of the student’s home university or institution to determine the final grade equivalencies.

    Matrícula de Honor = A+ Suspenso = F Sobresaliente = A No presentado = Incomplete (attended Notable = B classes but did not take final exam) Aprobado =C No Asistencia = Incomplete (enrolled in the course but did not attend class)

    Class Attendance: class attendance is compulsory and attendance is taken at each class meeting and is reflected on the attendance sheet that is sent to the home university.

    An 85% attendance rate is required for the successful completion of the course. Perfect attendance will be considered positively.

    If a student exceeds this limit, the grade on the transcript for this subject could appear as “not attended course”.

    Non-programmablecalculator

    E-learning platform:Money, Banking and the Financial System, plus MyEconLab with Pearson eText, International Edition, 2/E.

    Everysinglestudent mustpurchase a personal code for access to the online platformfrom where all the coursemanagement (eText, assingments, reviews, activities,etc) will take place.

    Registration codes available from ISA admin office. Your instructor will guide you in the registration process. Usually one week after instruction begins

    Course Evaluation:

    20% Tasks and attendance

    40% Final exam

    30% Projects

    10% Subjective evaluation (students are expected to come prepared to class and professor will value that students are showing a mark of improvement)

Course Disclaimer

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Some courses may require additional fees.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations