| Unit name | International Finance |
|---|---|
| Unit code | ECONM2031 |
| Credit points | 15 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Professor. Hill |
| Open unit status | Not open |
| Pre-requisites |
None |
| Co-requisites |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
As national economic boundaries have been eroded and the international elements of business have expanded, an understanding of the operation of international financial markets is becoming ever more important. This unit examines the risks and opportunities available within an international environment. It covers the international parity relations, exchange rate determination, international stock markets and the assessment and management of risk.
The unit aims to provide a good grasp of international arbitrage relationships and models of exchange rate determination, and to consider how the risks associated with operating in an international environment can be evaluated and managed.
Having successfully completed this unit students will be able to;
1. Describe the international arbitrage relationships and understand why deviations may occur.
2. Outline the theories underlying the determination of exchange rates.
3. Understand the risks and opportunities offered in by international investment environment, and strategies for mitigating these risks.
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities
This unit will be assessed by 100% coursework
Main text-book
Solnik, B., and McLeavey, D., 2014, ‘Global Investments’, 6th (International) edition, published by Pearson.
Required Articles
Levi, H., & Lim, K.C., 1994, ‘Forward exchange bias, hedging and the gains from international diversification of investment portfolios’, Journal of International Money and Finance, pp. 159 – 170
Sarno, L, and Taylor, M.P., 2002, ‘Purchasing Power Parity and the Real Exchange Rate’ IMF Staff Papers, Vol. 49, pp. 65-105
Additional reading
The following book is a useful guide to the basics of Capital Market Theory.
Bodie, Kane and Marcus, ‘Investments’, McGraw Hill International.
