Fakta om emnet
- Ansvarlig avdeling:
- Avdeling for økonomi, språk og samfunnsfag
- Roswitha King
- ½ år
SFB12614 International Finance (Vår 2020)
Emnet er tilknyttet følgende studieprogram
Compulsory for students on the Business Administration Programme, specializing in International Business or Economic Analysis.
Optional for for students on the Business Administration Programme, specializing in Project Management (applicable for students in Class of 2018 and earlier).
Optional for other students on the Business Administration Programme.
All courses in first year must be passed before students can start in third year in the study programme.
Microeconomics/Mikroøkonomi med analyse
6th semester (spring).
Studentens læringsutbytte etter bestått emne
This subject will enable the student to achieve the following learning outcomes.
The student will have gained knowledge of the functioning of the system of international finance both from the perspective of the international macro economy and from the perspective of a firm operating in international markets. This includes a wide spectrum of concepts, such as the idealized concept of 'purchasing power parity', the benefits and costs of hedging and speculating with derivatives and the effects portfolio diversification. The student will have gained an understanding that risk cannot be eliminated - it can only be re-distributed to others.
The student will have learned to analyze and interpret key markets, institutions, processes and instruments of the global financial economy. This includes theoretical concepts, based on mathematical models, graphical representation and text- and data analysis. In particular the student will have learned to evaluate the benefits, costs and risks of globalization.
The student will have built a frame of reference for understanding and evaluating the functioning of the global financial markets, its opportunities, challenges and risks. The student will be ready to use the above mentioned methods of analysis to arrive at answers to specific questions under the uncertainties presented by global financial conditions - be it in the pursuit of more advanced academic degrees, or be it in the student's future role as economist, entrepreneur, administrator, policy-maker or educator.
This course is built around three central questions:- How does the system of international finance function?- What are the specific instruments that, for better or for worse, are used by the participants in international financial markets for the purpose of hedging against risk, and for the purpose of embracing risk through speculation?- How could things go so wrong to produce a financial crisis that has led to world recession?
The Financial Crises and Devaluation in the Currencies
Opportunities and Challenges of Multinational Financial Market
The International Monetary System
Foreign Exchange Market
Speculation, Hedging, and Foreign Currency Derivatives
Future, Option, Forward, and Swaps
Foreign Exchange Rate Determination
International Trade Finance
The Tax-Heaven Countries and How Multinational Enterprises (MNEs) reduce the risk by managing their multinational tax (multinational tax management)
Undervisnings- og læringsformer
Students will participate in the following learning activities:
Lectures, Seminars, group work, and group discussions and presentations.
The course will give the student approximately 280 hours of work.
Arbeidskrav - vilkår for å avlegge eksamen
A group written assignment will be assessed on a pass/fail basis.
A 'pass' on the assignment is necessary to obtain permission to take the final exam.
Four hours individual written examination
Aids allowed: approved calculator, mother tongue - English - mother tongue dictionary.
One internal and one external examiner, or to internal examiners.
Evaluering av emnet
To improve the course, we need the evaluations from the students. The course is evaluated by the students and the evaluations from the students are treated by the staff and the faculty's committee for quality of education.
The readinglist was last updated 10 October 2018. Changes can be made before semester start.
Mandatory literature Textbook: Eiteman, David K., Arthur I. Stonehill, and Michael H. Moffett, Multinational Business Finance, 14th ed. (Global Edition), Boston (available at the bookstore at HIOF, Halden Campus)
Handouts and Multimedia: There will be additional texts and videos (multimedia) available on Canvas. These texts and videos are part of mandatory literature, and they are exam relevant.
Ariana Anderson, Dollarization: A Case Study of Ecuador, Journal of Economics and Development Studies, June 2016, Vol. 4, No. 2, pp. 56-60
Norges Bank, Exchange Rate Regimes in Norway between1816-2016 (2016),
Moffet, Michael H., Arthur I. Stonehill, and David K. Eiteman (2014), Fundamentals of Multinational Finance, Pearson International Edition, Prentice Hall.
Arnold, Glen (2012). Financial Times guide to the Financial Markets. 1st edition. Publisher: FT Press
Madura, Jeff (2014). International Financial Management. 12th edition. Publisher: Cengage Learning.
Madura, Jeff (2014). Financial Markets and Institutions. 11th edition. Publisher: Cengage Learning.
James, Jessica; Marsh, Ian; Sarno, Lucio (eds.) (2012). Handbook of Exchange Rates. 1st edition. Publisher: Wiley.
Hull, John (2015). Risk Management and Financial Institutions. 4th edition. Publisher: Wiley.
Guillén, Mauro F. (2015). The Architecture of Collapse: The Global System in the 21st Century. Publisher: Oxford University Press.
Kedar-Levy, Haim (2016). A Critical History of Financial Crises: Why Would Politicians and Regulators Spoil Financial Giants? Publisher: World Scientific.
Moosa, Imad A., and Bhatti, Razzaque H. (2009). The Theory and Empirics of Exchange Rates. Publisher: World Scientific.
Li, Ruogu (2016). Reform of the International Monetary System and Internationalization of the Renminbi. Publisher: World Scientific.
Xingyun, Peng (2015). Financial Theory: Perspectives from China. Publisher: World Scientific.
Barth, James R., and Kaufman, George G. (eds) (2015). The First Great Financial Crisis of the 21st Century. A Retrospective. Publisher: World Scientific.
Haiquing Deng and Xi Chen (2016). Reforging the Central Bank. The Top-Level Design of the Chinese Financial System in the New Normal. Publisher: World Scientific.