International Finance Management

Universidad del Norte

Course Description

  • Course Name

    International Finance Management

  • Host University

    Universidad del Norte

  • Location

    Barranquilla, Colombia

  • Area of Study

    Business Administration, Finance, Financial Management, Intercultural Management, International Management

  • Language Level

    Taught In English

    Hours & Credits

  • Credits

    3
  • Recommended U.S. Semester Credits
    0
  • Recommended U.S. Quarter Units
    0
  • Overview

    2.    Course description

    This course is focus on the managerial key aspects of International Finance on the new world economy. Taking in to consideration the accelerated integration of world trade and the involved finance in their operations this course has been organized in the following form. First an introduction to the new world market and the importance of the international finance, Secondly it will be study the money flow and the country Balance of Payment accountancy. Afterward it will be ongoing with the explanation of the currency markets and the exchange risk involved, taking into consideration the parity conditions that regulates market imperfections. Finally it will be focusing on the importance of hedging and the financial tools that can be used to hedge on exchange risk when it is required.

    3.     Relevance

    Student should understand that multinational and export or import oriented enterprises continues to be dependent on its ability to recognize and benefit from imperfections in national markets for products, factors of production and financial assets. Students should dominate the theme that volatile exchange rates may increase risk, but they also create opportunities for both investors and firms to profit if it is given to the data a proper understanding of exchange risk management. Recognize the increasing importance of global integration of money and capital markets, a trend that is creating expanded opportunities for both investors and organizations that need to raise capital. Also understand that global integration of financial markets regulates some of the market imperfections and the flow of international capitals, and generates excellent opportunities for investors to increase their returns while lowering their risk through international portfolio diversification and for firms to lower their cost of capital by sourcing it internationally.

    4.    Related competences

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

    5.    General objective of the course

    This course will be oriented to:
    The students is to acquire the related knowledge presence in the world currency markets, understanding the exchange rate risk involved in the market operations and the instruments which they have access for hedging and knowing that they have the possibility to access to these concepts for more accurate decision made on those international level operations.
     

    1. Course planner

     

    No

    Lecture

    Themes

    Hours

    1

    Introduction to international Finance and Its importance

    -Globalization & Multinational Corps

    2

     

     

    -Importance of International Finance

     

     

     

    -Market Opportunities

     

    2

    Balance of Payment and  Accounts Types

    Balance of Payment

     

     

     

    Balance of Payment Deficit

    4

     

     

    Double Entry Accountancy and BOP

     

     

     

    Current Account

     

     

     

    Capital Account

     

    3

    Exchange Rate and its Equilibrium

    Exchange rate Movements

     

     

     

    Exchange rate equilibrium

    4

     

     

    Influencing Factors

     

    4

    The Currency Markets

    Interbank Transactions Types

     

     

     

    The Exchange Rate

    4

     

     

    Types of Exchange Rates

     

     

     

    Arbitrage

     

     

     

    Speculation

     

    5

    Exchange Rate Types and Parity Conditions

    Parity Market Conditions

     

     

     

    Purchasing Parity Power

    6

     

     

    Fisher Effect (Closed and Open)

     

     

     

    Interest Parity Theory

     

     

     

    Exchange Rate Forecasting

     

    6

    Banking Covering and  Hedging

    Forwards Markets

     

     

     

    Futures Markets

    4

     

     

    Options Market

     

     

     

    Swaps Markets

     

    7

    Management of Risk Exposition

    Risk Exposure

     

     

     

    Exchange Risk

    4

     

     

    Introduction to exchange risk Hedging

     

     

     

    Risk Management

     

     

     

    Operative hedging

     

     

    1. Methodological  Options-Activities  of  Learning

     

    Magisterial  classes 

    It  will  be  used  magisterial  classes  to  present  the  concepts,  that  will  be  complemented  with  workshops  and  exercises  in  and  out  of   the  classroom,  they  will  be carried  out  by  the  students,   and  they  will  allow  them  to  strengthen  the  developed  concepts,  and  they  will  give them  dexterity  in  the  use  of  the  different  equivalences.

    Works and Workshops

    The  external  work  will  be  supported  in  class  with  workshops  for  each  unit  that  must  be  developed  by  the  students, they  will  count on  the  advice  of  the  professor  for  the  workshops when  they  need  it;  this  guidance  can  be  personally  offered,  by  e-mail  or  the  WEB  Catalog. 

    Forums of discussion

    The  students  in  class  through  a  brainstorm  session  directed  by  the  professor, must  present  different  ways  of  solution  to  the considered  problems,  and  they  must  express  themselves  in  a  clear  and  coherent  way,  supported on  the  concepts  that  are  being  developed  in class.

    It  will  be  a group work  in  which  the  student  can  discuss  the  different   ways  to  focus  the  problems,  interchange  ideas, reinforce  the  concepts  and  strengthen  the  mental  structuring  for  the  solution  of  problems,  the  abstraction  and  the  conceptualization.  This  work  will  be  carried  out  in  class  under  the  teacher’s  advice  and  supervision,  the  professor  will  act  as  mediator  and  he  will  take  part  on  it,  to  reinforce  and /or  clarify  concepts.

    Method of cases

    It  will  be  a group work  in  which  the  student  can  discuss  the  different   ways  to  focus  the  problems,  interchange  ideas, reinforce  the  concepts  and  strengthen  the  mental  structuring  for  the  solution  of  problems,  the  abstraction  and  the  conceptualization.  This  work  will  be  carried  out  in  class  under  the  teacher’s  advice  and  supervision,  the  professor  will  act  as  mediator  and  he  will  take  part  on  it,  to  reinforce  and /or  clarify  concepts.

    In  the  development   of  the  concepts  will  be  used  articles  of  newspapers  and  magazines, and  it  will  try  to  correlate  the  concepts  with  the  international  and  national  reality  of  the  moment.

     

    1. Evaluation Assessment

     

    1

    First Exam (25%)

     

    2

    2

    Second Exam (25%)

     

    2

    3

    Final Exam (25%)

     

    2

    4

    Onsite work, Homework and Quizzes (25%)

     

    32