| Course Unit Code | 114-0522/02 |
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| Number of ECTS Credits Allocated | 4 ECTS credits |
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| Type of Course Unit * | Choice-compulsory |
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| Level of Course Unit * | First Cycle, Second Cycle |
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| Year of Study * | |
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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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| HLA31 | Ing. Karel Hlaváček, Ph.D. |
| LIB009 | prof. Dr. Ing. Jan Libich |
| MEL044 | doc. Ing. Aleš Melecký, Ph.D. |
| Summary |
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This course deepens knowledge gained in basic courses of economics and finance
of themes of financial relations, which take place among the subjects of
international markets. The central themes of the course are selected topics
from the international finance. These topics cover particularly foreign
exchange markets, global markets of debt financial instruments, financial
management of multinational corporations, financial crisis, determination and
forecasting of exchange rates.
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| 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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| 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. |
| Recommended or Required Reading |
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| Required Reading: |
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KRUGMAN, Paul R., Maurice OBSTFELD a Marc MELITZ. International Economics: Theory and Policy. 12th ed. Harlow: Pearson, 2023. 824 s. ISBN 978-1292409719.
MADURA, Jeff. International Financial Management. 14th ed. Boston: Cengage Learning, 2020. 736 s. ISBN 978-0357130544.
REINERT, Kenneth A. An Introduction to International Economics: New Perspectives on the World Economy. 2nd ed. Cambridge:Cambridge University Press, 2020. 276 s. ISBN 9781108470056. |
KRUGMAN, Paul R., Maurice OBSTFELD a Marc MELITZ. International Economics: Theory and Policy. 12th ed. Harlow: Pearson, 2023. 824 s. ISBN 978-1292409719.
MADURA, Jeff. International Financial Management. 14th ed. Boston: Cengage Learning, 2020. 736 s. ISBN 978-0357130544.
REINERT, Kenneth A. An Introduction to International Economics: New Perspectives on the World Economy. 2nd ed. Cambridge:Cambridge University Press, 2020. 276 s. ISBN 9781108470056. |
| Recommended Reading: |
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EITEMAN, David K., Arthur I. STONEHILL a Michael H. MOFFET. Multinational Business Finance. 15th. ed. Harlow: Pearson, 2020. 640 s. ISBN 978-1292270081.
MANKIW, N. Gregory. Brief Principles of Macroeconomics. 9th. ed. Boston: Cengage Learning, 2020. 480 s. ISBN 978-0357133507.
MOFFET, Michael H., Arthur I. STONEHILL a David K. EITEMAN. Fundamentals of Multinational Finance. 6th ed. Harlow: Pearson. 2021. 608 s. ISBN 978-1292215211. |
EITEMAN, David K., Arthur I. STONEHILL a Michael H. MOFFET. Multinational Business Finance. 15th. ed. Harlow: Pearson, 2020. 640 s. ISBN 978-1292270081.
MANKIW, N. Gregory. Brief Principles of Macroeconomics. 9th. ed. Boston: Cengage Learning, 2020. 480 s. ISBN 978-0357133507.
MOFFET, Michael H., Arthur I. STONEHILL a David K. EITEMAN. Fundamentals of Multinational Finance. 6th ed. Harlow: Pearson. 2021. 608 s. ISBN 978-1292215211. |
| 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 |