International Financial Management

Course description

This course is intended for the general comprehension and understanding of the foreign exchange market including the cryptocurrency market. Taking into consideration the integration of world trade and the evolution of financial transactions this course has been organized in the following form. First, an introduction to the new world market, and the importance of international financial management. Secondly, the study of the money flow and the balance of payment accountancy of a country. Afterward, the course will continue with the explanation of the currency markets and the exchange risk involved, taking into account the parity conditions that regulate market imperfections. Finally, it will focus on the importance of hedging and the financial tools that can be used to hedge exchange risk when it is required.

Relevance

Students should understand that multinational enterprises continue to be dependent on their ability to recognize and benefit from imperfections in national markets when engaging in import and export activities. Nowadays, students face a world that is increasingly influenced by the effects of technology and the Internet. It is necessary to know all the available tools that the market offers to reduce the risk in the face of the uncertainty of the exchange risk from one currency to another. Students should dominate concepts of volatile exchange rates to create profit opportunities for both investors and firms. Students will learn about the traditional and regulated channels of monetary exchange and initiate the discussion of new markets based on the use of blockchain technology. The evolution of the monetary system, the benefits of the virtual currencies, and the fundamental basics of the stability of the international financial system are analyzed so that the student develops critical thinking in the face of new challenges and changes.

Related competences

Learn how to use hedging tools in the international financial environment taking into consideration the involved market risk (on the currency market operations) in order to make the most accurate decision in risk management.

General objective of the course

This course will be oriented to: Acquire the related knowledge nowadays in the world currency markets, understand the exchange rate risk involved in the market operations and learn the different instruments for hedging. Learn the ways to access these concepts and instruments for more accurate decisions on international-level operations.