| Course Unit Code | Course Unit Title | Number of ECTS Credits Allocated |
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| 114-0522/02 | International Finance | 4 ECTS credits |
| Type of Course Unit | Choice-compulsory |
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| Level of Course Unit | Second Cycle |
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| Year of Study | Second Year |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | English |
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| Prerequisites and Co-Requisites | Course succeeds to compulsory courses of previous semester |
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| Name of Lecturer(s) | Personal ID | Name |
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| POL01 | prof. PhDr. Stanislav Polouček, CSc. |
| HLA31 | Ing. Karel Hlaváček, Ph.D. |
| Learning Outcomes of the Course Unit |
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- To interpret topics of international finance, its theoretical backgrounds and real events.
- To explain impacts of exchange rate risk in company and discuss possibilities of measuring and managing exposures.
- To design possible ways of financing through instruments that are offered in the international financial markets.
- To argue advantages and disadvantages of various forms of international investments.
- To evaluate process of financial crises - its causes, symptoms and consequences - including possibilities of their forecasting.
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| Recommended Optional Programme Components |
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| Common optional components are not offered, students of special interest can participate in departmental activities or can arrange consulting hours with lecturer. |
| Course Contents |
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1. Introduction to foreign exchange markets.
- Exchange rates and quotation.
- Function and structure of forex markets.
- Interbank forex market.
- spot and forward transactions
2. Forward and swaps.
- Evolution of forward transactions.
- Forwards.
- Swaps.
- Comparison with other currency derivates (fututres, options).
3. Foreign exchange risk and exposure.
- Characteristics of FX risk and exposure.
- Transaction exposure.
- Translation exposure.
4. Globalisation of financial markets and international banking.
- Development of financial markets.
- New forms of international financing.
- Recent trends in development of international financial system.
5. Eurocurrency markets and eurocredits.
- Development of Eurocurrency instruments.
- Forms of eurocredits.
- Euronotes markets.
6. Eurobonds.
- Eurobond market.
- Types of eurobonds.
- Subjects of Eurobond markets.
7. Organisation of Eurobond issues.
- Procedures of an Eurobond issue.
- Costs of Eurobond issues .
- Global bonds.
8. International share markets.
- Share issues at foreign markets.
- Foreign share markets.
- Global shares.
9. International portfolio investments.
- International investments and risk diversification.
- Foreign investments and CAPM.
- Selection of international portfolio.
10. Foreign direct investments.
- International capital budgeting.
- Country risk analysis .
- International taxation.
11. Models of exchange rate determination.
- Assets market model.
- Determination in long run.
- Modern theories of exchange rate determination.
12. Exchange rates management.
- Exchange rate regimes.
- Theoretical approaches to exchange rates managing.
- Currency interventions and their effectiveness.
13. Financial crises.
- Characteristics of financial crises.
- Analysis of financial crises.
- Forecasting models.
14. Balance of payments.
- Balance of payments‘categories.
- Adjusting of the balance of payments.
- Sustainability of current account deficits.
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| Recommended or Required Reading |
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| Required Reading: |
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SHAPIRO, Alan C. Multinational financial management. 9th edition, John Wiley & Sons, 2010. ISBN: 978-0-470-45035-2
EITEMAN, David K., STONEHILL, Arthur I. a MOFFETT, Michael H. Multinational business finance. 12th ed. Boston: Pearson Education, 2010. The Prentice Hall series in finance. ISBN 978-0-13-612156-5.
KRUGMAN, Paul R., OBSTFELD, Maurice and MELITZ, Marc J. International economics: theory & policy. 9th, global ed. Boston: Pearson, 2012. ISBN 978-0-273-75409-1.
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DURČÁKOVÁ, Jaroslava a Martin MANDEL. Mezinárodní finance. 4. vyd. Praha: Management Press, 2010. ISBN 978-80-7261-221-5.
FRAIT, Jan. Mezinárodní peněžní teorie. 1.vyd. Ostrava: VŠB-TUO, 1996. ISBN 80-7078-395-8.
POLOUČEK, Stanislav a kol. Peníze, banky, finanční trhy. 1. vyd. Praha: C.H.Beck, 2009. ISBN 978-80-7400-152-9.
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| Recommended Reading: |
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| SOLNIK, Bruno a McLEAVY, Dennis. Global investments. 6th ed. Boston: Pearson Prentice Hall, 2009. The Prentice Hall series in finance. ISBN 978-0-321-55212-9. |
EITEMAN, David K., STONEHILL, Arthur I. a MOFFETT, Michael H. Multinational business finance. 12th ed. Boston: Pearson Education, 2010. The Prentice Hall series in finance. ISBN 978-0-13-612156-5.
KODERA, Jan a Jana MARKOVÁ. Devizové obchody. 3. vyd. Praha: Bankovní institut vysoká škola, 2007, ISBN 978-80-7265-110-8.
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| Planned learning activities and teaching methods |
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| Lectures, Individual consultations |
| Assesment methods and criteria |
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| Tasks are not Defined |
| Work placement(s) |
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| Course does not contain work placement. |
