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International Finance |
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| School of Finance, Shandong University of Finance and Economics |
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| Course Code： |
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| Total Number of Instruction Hours: 51 |
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| Number of Credits：3 |
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| About this Course |
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| International finance is an undergraduate course that involves the fundamentals of the dynamics of the global financial system, the operation of international monetary systems, the components of balance of payments and international reserve, the comparison of exchange rates regime, foreign investment and international capital flows, and additionally concerned with practice matters of multinational corporations management. The final section of the course provides an introduction of some key concepts including Mundell–Fleming model, the optimum currency area theory, purchasing power parity, interest rate parity, and the international Fisher effect. |
| All the students who majored in economics, management and other related disciplines are required to take this course. By the end of the course, students will be able to understand introductory concepts and theories of international finance, comprehend mechanism of international financial markets, acquire a solid grounding for pursuing related research fields such as international settlement, and solve basic international finance problems, which comprise of the fundamentals of further studies and research. |
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| Prerequisites and Preparation |
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| Macroeconomics, Microeconomics, Money & Banking, Accounting |
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| Course Aims |
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| After completing this course, students should have developed a range of skills enabling them to understand international finance concepts and use those concepts to analyze specific questions. |
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| By the end of this course, students should be able to: |
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| · Develop a good understanding the fundamental principles of international finance including foreign exchange, foreign exchange market, Balance of Payment, foreign investment, international capital flow, ect. |
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| · Understand the development, functions and detects of international monetary arrangement |
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| · Comprehend structure and accounting of Balance of Payment, and adjustment and management imbalance of Balance of Payment. |
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| · Familiar with the reasons that cause international capital flows, especially such extreme forms as hot money and capital flight; and learn how to efficiently manage multinational capital flows. |
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| · Understand international financial market mechanism and some fundamental finance instruments which provide investors and traders investment chances and hedging the foreign exchange risks. |
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| · Master some key theories including Mundell–Fleming model, the optimum currency area theory, IS-LM-BP approach, determinants of exchange rates and determinant of balance of payment, by which to analysis international finance and economic issues. |
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| · Develop the methods for multinational firms to manage multinational financing issues; and explore the opportunities as well as risks facing the multinational corporations. |
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| Course Components and Requirements |
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| · Lectures |
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| · Assigned readings |
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| · Presentation and discussion |
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| · Quiz |
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| · Case study |
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| · Final Exam |
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| Text book |
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| Michael Melvin & Stefan C. Norrbin. International Money & Finance, 8th edition, Beijing: China Renmin University Press, 2013 |
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| Thomas A. Pugel. International Finance, 16th edition, Beijing: China Renmin University Press, 2018 |
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| Additional reading materials may be assigned during the semester. |
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| Assessment and Grading |
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| Method of evaluation and grading: |
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| 1）There will be presentations and discussion for several topics that account for 15% of the final grade. |
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| 2） Papers will be required to finish about hot news after case studies, accounting for 10% of the grade. |
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| 3) Quiz and final exam accounting for 15% and 60% of the remaining grade respectively. |
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| Method of Evaluation |
Grading |
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| Quiz |
15% |
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| Presentation and discussion |
15% |
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| Case studies |
10% |
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| Final Exam |
60% |
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