06300767 - Trade finance
| Crédits ECTS | 3 |
|---|---|
| Volume horaire total | 2E+1 |
| Volume horaire CM | 20 |
Responsables
Objectifs
The lectures aim to provide students with theory and practice of international finance. Throughout the lectures, real world case studies and excercises are extensivley used for illustration pourposes. Group work and discussion are encouraged.
The module has the aim of giving students the confidence to apply and develop their financial understanding of marco economic factors affecting international business. It further aims to provide students with the skills and abilities required to interpret financial information in an international context.
Students will gain the knowledge and experience of techniques that will enable them to recommend strategic financial solutions for multinational businesses and to implement them effectively. A range of financial and economic theories and techniques combined with practical applications to assist the manager in the practice of financial strategy will be explored.
Estimation of private study (outside of contact hours): 6 hours
DIMENSION OF SOCIAL RESPONSIBILITY
A thorough discussion on the challenges of globalization takes place during the third lecture.
TARGETED KNOWLEDGE AND SKILLS
Recognize the Physical and Social Factors of Trade
Develop Analytical Skills and Propose Solutions to Complex Problems
Construct a Risk Management Strategy
The module has the aim of giving students the confidence to apply and develop their financial understanding of marco economic factors affecting international business. It further aims to provide students with the skills and abilities required to interpret financial information in an international context.
Students will gain the knowledge and experience of techniques that will enable them to recommend strategic financial solutions for multinational businesses and to implement them effectively. A range of financial and economic theories and techniques combined with practical applications to assist the manager in the practice of financial strategy will be explored.
Estimation of private study (outside of contact hours): 6 hours
DIMENSION OF SOCIAL RESPONSIBILITY
A thorough discussion on the challenges of globalization takes place during the third lecture.
TARGETED KNOWLEDGE AND SKILLS
Recognize the Physical and Social Factors of Trade
- Apply international parity condition theories such as Purchasing Power Parity (PPP), Fischer Effect, International Fischer Effect, Interest Rate Parity, and Forward Rate as an unbiased predictor.
- Utilize the theory of comparative advantage to understand trade dynamics and benefits.
Develop Analytical Skills and Propose Solutions to Complex Problems
- Identify key factors that contribute to successful internationalization of businesses.
- Extract and analyze relevant information from the balance of payments to inform trade decisions.
- Identify and choose appropriate currency regimes based on economic and trade conditions.
Construct a Risk Management Strategy
- Execute currency calculations involving covered and uncovered interest rate arbitrage.
- Assess the effects of currency rate fluctuations on a company's operations.
- Set price levels for partial and complete exchange rate pass-through scenarios.
Contenu
COURSE OUTLINE
II. Foreign Echange Theory and Markets
1. The foreign exchange market
2. International parity conditions
3. Currency derivatives and swaps
II. Foreign exchange exposure
1. Transaction exposure
2. Translation exposure
3. Operating exposure
II. Foreign Echange Theory and Markets
1. The foreign exchange market
2. International parity conditions
3. Currency derivatives and swaps
II. Foreign exchange exposure
1. Transaction exposure
2. Translation exposure
3. Operating exposure
Bibliographie
PRESCRIBED TEXTS AND PUBLICATIONS
1. Moffett, Michael H., Arthur I. Stonehill, and David K. Eiteman. Fundamentals of multinational finance. Pearson, 2017.
RECOMMENDED TEXTS AND PUBLICATIONS
1. David, K., Stonehill I. Arthur, and Moffett H. Michael. Multinational business finance. Boston: Addison–Wesley, cop, 2001.
2. Krugman, Paul R. International economics: Theory and policy, 8/E. Pearson Education India, 2008.
3. Anthony Saunders. Financial institutions management: a modern perspective. McGraw-Hill College, 2000.
EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE
1. Krugman, Paul. "A model of balance-of-payments crises." Journal of money, credit and banking 11.3 (1979): 311-325.
TEXTS AND PUBLICATIONS OF IAELYON FACULTY ON THE SUBJECT OF THE COURSE
1. Mercier-Suissa, Catherine, Abadie, Laurence "Finance internationale : Marché des changes et gestion des risques financiers", Armand Colin, Collection U Economie, 2011
1. Moffett, Michael H., Arthur I. Stonehill, and David K. Eiteman. Fundamentals of multinational finance. Pearson, 2017.
RECOMMENDED TEXTS AND PUBLICATIONS
1. David, K., Stonehill I. Arthur, and Moffett H. Michael. Multinational business finance. Boston: Addison–Wesley, cop, 2001.
2. Krugman, Paul R. International economics: Theory and policy, 8/E. Pearson Education India, 2008.
3. Anthony Saunders. Financial institutions management: a modern perspective. McGraw-Hill College, 2000.
EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE
1. Krugman, Paul. "A model of balance-of-payments crises." Journal of money, credit and banking 11.3 (1979): 311-325.
TEXTS AND PUBLICATIONS OF IAELYON FACULTY ON THE SUBJECT OF THE COURSE
1. Mercier-Suissa, Catherine, Abadie, Laurence "Finance internationale : Marché des changes et gestion des risques financiers", Armand Colin, Collection U Economie, 2011
Contrôles des connaissances
Individual grade
A set of questions, exercises and a short case, 2h
Other grade(s)
Research report and presentation
Weight: 2/3
A set of questions, exercises and a short case, 2h
Other grade(s)
Research report and presentation
Weight: 2/3
Informations complémentaires
TEACHING METHODS
A mixture of lectures and seminars - run on a workshop style - will be used to introduce the topics and techniques. These topics and techniques will be explored further through the use of numerical examples and discussion. Case studies will be used where appropriate and relevant. All relevant module information, required reading, lecture overheads, seminar questions etc are made available to the students.
PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS
There are no prerequisites for this course. However, a general interest in the world of economics and finance is very useful
ADVISED PRIOR READING
Financial pages of daily newspapers; FT.Com; WSJ.com; economist.com; Yahoo Finance.
RESOURCES AVAILABLE
Library access to all the above
A mixture of lectures and seminars - run on a workshop style - will be used to introduce the topics and techniques. These topics and techniques will be explored further through the use of numerical examples and discussion. Case studies will be used where appropriate and relevant. All relevant module information, required reading, lecture overheads, seminar questions etc are made available to the students.
PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS
There are no prerequisites for this course. However, a general interest in the world of economics and finance is very useful
ADVISED PRIOR READING
Financial pages of daily newspapers; FT.Com; WSJ.com; economist.com; Yahoo Finance.
RESOURCES AVAILABLE
Library access to all the above