Summary Introduction to international finance

FIN 2305: INTERNATIONAL FINANCE
PREREQUISITES: FIN 3101: FINANCIAL MANAGEMENT
DETAILED COURSE OUTLINE

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Course Description
The course introduces the framework, new developments and innovation in international finance,
exchange rate systems and risk management. The purpose of this course is to teach the concept
of international trade, risk exposures as a result of international trade and how to manage the
exchange rate exposure through hedging strategies. Upon completion of this course, students
should be able to provide sound advice on risk exposure and risk management.


Expected Learning Outcomes

At the end of the course, students should be able to:
1. Explain the international finance systems and exchange rate market.
2. Explain current tools used in international finance
3. Provide sound advice on risk exposure facing multinational corporations
4. Apply the risk management tools in hedging risk exposures.


COURSE CONTENT
Week Topic / Subtopic
Week 1 Introduction to International Finance
 International Trade
 Theories of International trade
 Methods of international trade
 Goals of international investments
Week 2 Foreign exchange Market
 Exchange rate systems
 Types and determinants of exchange rates
Week 3  Spot and forward exchange rates
 Exchange rate spread
 Factors affecting the spread
 Application questions on exchange of currency
Week 4 International Arbitrage
 Locational arbitrage