International Finance (in English)

Universidad Pablo de Olavide

Course Description

  • Course Name

    International Finance (in English)

  • Host University

    Universidad Pablo de Olavide

  • 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

  • Contact Hours

    45
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    The main purpose of this course is to introduce the students to the complex world of International Finance. International Finance is the branch of Economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. It also includes the study of futures, options and currency swaps.

    The first part of this course is dedicated to the description and the functions of today?s monetary systems, at both the international and European level. Before continuing, we will make a quick review of the main international stock markets which will be useful for your final project. Finally, we will analyze the different theories that attempt to explain the formation of conversion rates.

    In the second part, we will analyze the foreign currency markets, not only the traditional spot and forward ones, but also the derivatives markets. Specifically, option and future contracts on foreign currency are described as well as some over the counter (OTC) products.

    EVALUATION SYSTEM:
    Your final grade will be calculated according to the following system:
    - 15% mid-term exam
    - 30% final exam
    - 40% final project
    - 15% Class participation quizzes and extra assignments

    Every day, during the first 10-15 minutes of class I will invite you (and of course consider it in your 15% participation grade) to bring lecture-related articles from magazines, newspapers or any source that you wish, and share them with the rest of your classmates.

    Once in a while a quiz will be given to make sure that you are on track.

    FINAL PROJECT
    Three main topics will be available:
    - Developing countries: I will expect you to analyze the past, present and future of one of these countries; for example, China or Brazil. I will also especially consider your personal opinion and analysis about the chosen country and its near future according to the results of your study.
    - Fiscal paradises: I will expect you to analyze what they are, why they exist, how they work and who is using them. Some examples are the Cayman Islands and Andorra.
    - International Stock Markets: I will expect you to analyze and compare at least two international stock markets. The final objective is to study whether a correlation does or does not exist regarding the way that the markets behave in time. If there is no relationship, your challenge will be to explain why.

    We will talk more about this in class, but you can start considering the following:

    - Date TBD ? Main international stock markets review and discussion about the final project.
    - Date TBD ? Last day to submit detailed project topic. (First come, first served).
    - Date TBD ? Submit project rough draft in class
    - Date TBD ? Final paper due, 11:59 p.m. Hard copy or by e-mail
    - Date TBD ? 09/12/2008 ? Final project presentations.

    INTERNATIONAL FINANCES: TABLE OF CONTENTS
    Chapter 1. Globalization and the Multinational Firm. David Ricardo?s comparative
    advantages theory
    - Main international stock markets review-
    Chapter 2. The International Monetary System
    Chapter 3. The Market for Foreign Exchange
    Chapter 4. International Parity Relationships & Forecasting Foreign Exchange Rates
    Chapter 5. Futures and Options on Foreign Exchange. Quick approach.

    COMPULSORY REFERENCE
    EUN / RESNICK. International Financial Management. Fourth edition, McGraw Hill, 2007

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.

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