Course detail

International finance

FP-mfPAcad. year: 2014/2015

The course focuses on the process of development and trends in international finance with an accent on the causes which lead to external disbalances of economy and their impact on firms.

The following topics are discussed in more details: foreign exchange market and theories of exchange rate, exchange rate regimes, Balance of Payments, Investment and international trade finance, specifics of multinational corporations´ finance strategies.

Language of instruction

Czech

Number of ECTS credits

Mode of study

Not applicable.

Learning outcomes of the course unit

Knowledge: students describe actual questions and problems regarding international financial system, know the basic exchange rate theories, the causes of external disbalance of economy, the exchange rate regimes, the functioning and organization of international financial markets and the specifics of entrepreneurship in international environment.

Skills: students evaluate the current state and expected trends of development regarding international financial system, apply their knowledge of exchange rate theories and identify risk affecting a particular type of business. Students assess foreign investment options and determine an optimal way of finance.

Capabilities: students independently search for solutions of assigned problems from the field of international finance, organize cooperation in team and present the results of joint activities. Opinions on issues regarding international finance, as well as conslusions derived from individual and team tasks, they formulate in a clear way and support by reasons based on facts.

Prerequisites

Knowledge of corporate finance, basic macroeconomics, financial mathematics and international business.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course consists of lectures and seminars. On lectures the basic principles, problems and the methodology of the discipline are explained. Seminars contain exercises that promote the practical knowledge of the subject presented in the lectures, case studies, presentation of assignments and formulation of conclusions for firms.

Assesment methods and criteria linked to learning outcomes

Conditions for passing the seminars: active participation in seminars, hand in and presentation of assignment in a chosen topic. Assignment in final evalutation has a wage of 30 %.

Conditions for passing the final exam: knowledge of taught topics and its practical application. The examination is a combination of a written test and an oral examination if necessary. Final examination is classified according to ECTS.

Course curriculum

Foreign exchange markets and exchange rate theories;
Exchange rate regimes;
Balance of Payments;
Investment and trade finance in international environment;
Foreign direct investment and portfolio investment;
Euromarkets;
Special forms of finance in international trade and investment;
Specifics of multinational corporations´ finance strategies.

Work placements

Not applicable.

Aims


The objective of the course is to introduce the environment in which international investment takes place, as well as the possibilities of acquiring finance for certain types of investments, and thus create a complex overview of this topic.

Specification of controlled education, way of implementation and compensation for absences

Lectures are not compulsory, but recommended. Students have to be present in at least 50 % of seminars. In case of apologozied absence teacher can set alternative condition, usually elaboration of a partial written task, as compensantion.

Results of independent work on assigned tasks are controlled by the teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

DURČÁKOVÁ, J. a M. MANDEL. Mezinárodní finance. 4. aktualizované a doplněné vydání. Praha: Management Press, 2010. ISBN 978-80-7261-221-5. (CS)
NÝVLTOVÁ, R. a M. REŽŇÁKOVÁ. Mezinárodní kapitálové trhy. Praha: Grada, 2007. ISBN 978-80-247-1922-1. (CS)
SÁGHY ESTÉLYI, K. Mezinárodní finance – studijní text k předmětu + e-learning (CS)

Recommended reading

BALDWIN, R., Ch. WYPLOSZ a S. ŠAROCH. Ekonomie evropské integrace. Praha: Grada, 2013. ISBN 978-80-247-4568-8. (CS)
ČERNOHLÁVKOVÁ, E., A. SATO a J. TAUŠER. Finanční strategie v mezinárodním podnikání. Praha: ASPI, 2007. ISBN 978-80-7357-321-8. (CS)
JÍLEK, J. Finance v globální ekonomice I: Peníze a platební styk. Praha, Grada, 2013. ISBN 978-80-247-3893-2. (CS)
JÍLEK, J. Finance v globální ekonomice II: Měnová a kurzová politika. Praha, Grada, 2013. ISBN 978-80-247-4516-9. (CS)
SHAPIRO, A. C. Multinational Financial Management. 9. ed. University of Southern California, 2010. ISBN 978-0-470-45035-2. (EN)

Classification of course in study plans

  • Programme MGR Master's

    branch MGR-UFRP , 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

20 hod., optionally

Teacher / Lecturer

Syllabus


Lectures are devoted to the explanation of basic principles, problems and methodology of the discipline.

Topics:
Introduction to international finance; the history and evolution of the international monetary system;
Foreign exchange markets and exchange rate theories;
Exchange rate regimes;
Balance of Payments;
Balance within the Balance of Payments;
Investment and trade finance in international environment;
Foreign direct investment;
Portfolio investment;
Euromarkets;
Special forms of finance in international trade and investment;
Specifics of multinational corporations´ finance strategies.

Exercise

10 hod., compulsory

Teacher / Lecturer

Syllabus


Seminars contain exercises that promote the practical knowledge of the subject presented in the lectures, case studies, presentation of assignments and formulation of conclusions for firms.

Topics:
Foreign exchange market and determining of exchange rate;
Exchange rate regimes;
Balance of Payments;
Foreing direct investment and portfolio investment;
Strategies of corporations in international trade and investment;
Financing international trade and investment activities.