| Course Objectives: |
This course aims to provide students with a comprehensive understanding of international finance. Students will learn key concepts, theories, and real-world applications in international trade, monetary systems, exchange rates, and global financial policies. The objective is to equip students with the necessary tools to analyze international financial markets, understand the dynamics of foreign exchange, and comprehend the economic policies affecting global finance. |
| Course Content: |
Introduction to international economics, trade, money, national income accounting, the balance of payments, exchange rates and foreign exchange markets, the interplay between money, interest rates, inflation, and exchange rate dynamics, the Law of One Price, purchasing power parity, international interest rate differences, real exchange rates, impact of monetary and fiscal policies on exchange rates, the role of central banks, fixed and floating exchange rate systems, and the history of international monetary systems. |
| Week |
Subject |
Related Preparation |
| 1) |
International Economics: Trade and Money |
Textbook: Chapter 1 |
| 2) |
National Income Accounting, Balance of Payments |
Textbook: Chapter 2 |
| 3) |
Exchange Rates, Foreign Exchagne Market |
Textbook: Chapter 3 (pp. 61-77) |
| 4) |
Exchange Rates, Foreign Exchange Market |
Textbook: Chapter 3 (pp. 77-91) |
| 5) |
Money, Interest Rates |
Textbook: Chapter 4 (pp. 97-107) |
| 6) |
Money, Interest Rates and Exchange Rates; Inflation and Exhcange Rate Dynamics |
Textbook: Chapter 3 (pp. 107-128) |
| 7) |
The Law of One Price, Purchasing Power Parity |
Textbook: Chapter 5 (pp. 132-144) |
| 8) |
Midterm exam |
|
| 9) |
International Interest Rate Differences, Real Exchange Rate |
Textbook: Chapter 5 (pp. 144-162) |
| 10) |
Aggregate Demand in an Open Economy, Output Market abd Asset Market Equilibrium in the Short Run. |
Textbook: Chapter 6 (pp. 170-187) |
| 11) |
Effect of Monetary and Fiscal Policies on Exchange Rates |
Textbook: Chapter 6 (pp. 187-209) |
| 12) |
Fixed Exchange Rates and Foreign Exchange Intervention |
Textbook: Chapter 7 |
| 13) |
International Monetary Systems, Gold Standard Period, Bretton Woods Period, Floating Exchange Rates Period |
Textbook: Chapter 8 |
| 14) |
Student presentations |
|
| 15) |
Student presentations |
|
| 16) |
Final exam |
|
| Course Notes / Textbooks: |
Krugman, P.R, Obstfeld, M., Melitz, M. (2023). International Finance: Theory and Policy, Global Edition, 12th edition. Pearson. |
| References: |
Krugman, P.R, Obstfeld, M., Melitz, M. (2023). International Finance: Theory and Policy, Global Edition, 12th edition. Pearson. |
| |
Program Outcomes |
Level of Contribution |
| 1) |
Graduates can combine the most up-to-date knowledge and practices in their field with original ideas and research to reach new syntheses and conduct original studies that will contribute to the field of business science. |
|
| 2) |
Graduates can analyze complex problems encountered in the field of business, develop solutions, and apply quantitative and qualitative research methods at an advanced level in this process. |
|
| 3) |
Graduates can analyze complex problems encountered in the field of business, develop solutions, and apply quantitative and qualitative research methods at an advanced level in this process. |
|
| 4) |
Garduates can exercise leadership in interdisciplinary studies and can produce solutions to increase the competitiveness of institutions by developing new strategic approaches. |
|
| 5) |
Graduates act in accordance with ethical principles in the field of business; develops sensitivity to sustainability, social responsibility and professional ethics. |
|