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Unit information: International Finance in 2020/21

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
Faculty Faculty of Social Sciences and Law

Description

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.

Intended learning outcomes

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 details

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

Assessment Details

This unit will be assessed by 100% coursework

Reading and References

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.

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