International Finance (AF4323)
International Finance (AF4323)
2010/2011 Semester Two
Time & Venue: Tue 13:30-16:20, N116
Course Description:
This course introduces students to various international financial markets and instruments, and examines their implications for the financial management of firms and investors.
We first examine the foreign exchange market and the different exchange rate systems that different countries adopt, paying special attention to currency board system.
Although we study various approaches of exchange rate determination, we emphasize that exchange rate movements are difficult to forecast. This difficulty motivates our in-depth coverage of foreign exchange risk management.
Next, we go beyond the foreign exchange market and study the international debt and equity markets – both from a company’s and an investor’s perspective. For companies, the debt and equity markets are channels through which new capital can be raised. For investors, these are markets they can make use of to generate investment returns.
Learning Outcomes:
On completion of this subject, students will be able to:
1. Understand the structure and characteristics of various international financial markets and instruments;
2. Understand how different exchange rate systems function and how they affect an economy’s business environment;
3. Identify the sources of risks in international transactions and understand how these risks can be managed;
4. Identify and analyze the international dimensions of the debt and equity markets, and understand their implications for a company’s financing decisions and investment policies. Subject Assessment
Continuous Assessment 45%
Final Examination 55%
Total 100%
*There will be bonus points of up to 5% awarded to those students who actively participate in
class
2010/2011 Semester Two
Time & Venue: Tue 13:30-16:20, N116
Course Description:
This course introduces students to various international financial markets and instruments, and examines their implications for the financial management of firms and investors.
We first examine the foreign exchange market and the different exchange rate systems that different countries adopt, paying special attention to currency board system.
Although we study various approaches of exchange rate determination, we emphasize that exchange rate movements are difficult to forecast. This difficulty motivates our in-depth coverage of foreign exchange risk management.
Next, we go beyond the foreign exchange market and study the international debt and equity markets – both from a company’s and an investor’s perspective. For companies, the debt and equity markets are channels through which new capital can be raised. For investors, these are markets they can make use of to generate investment returns.
Learning Outcomes:
On completion of this subject, students will be able to:
1. Understand the structure and characteristics of various international financial markets and instruments;
2. Understand how different exchange rate systems function and how they affect an economy’s business environment;
3. Identify the sources of risks in international transactions and understand how these risks can be managed;
4. Identify and analyze the international dimensions of the debt and equity markets, and understand their implications for a company’s financing decisions and investment policies. Subject Assessment
Continuous Assessment 45%
Final Examination 55%
Total 100%
*There will be bonus points of up to 5% awarded to those students who actively participate in
class