2024
International Finance
Name: International Finance
Code: GES12673M
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area:
Management
Teaching languages: Portuguese
Languages of tutoring support: Portuguese
Sustainable Development Goals
Learning Goals
Understand the organization and functioning of the exchange rate market
Analyse the main exchange rate determinants and the international parity conditions in the exchange and interest rate markets
Analyse the alternative exchange rate risk hedging techniques: mitigation policies, internal exchange rate risk elimination techniques and risk transfer (external) hedging techniques considering spot and derivative markets
distinguish the existing exchange rate arrangements and analyse the alternative models for exchange rate determination and forecasting
Understand the functioning of international equity and debt capital markets
Discuss the benefits of international portfolio diversification techniques
Analyse corporate investment and financing decisions in an international setting
Analyse the main exchange rate determinants and the international parity conditions in the exchange and interest rate markets
Analyse the alternative exchange rate risk hedging techniques: mitigation policies, internal exchange rate risk elimination techniques and risk transfer (external) hedging techniques considering spot and derivative markets
distinguish the existing exchange rate arrangements and analyse the alternative models for exchange rate determination and forecasting
Understand the functioning of international equity and debt capital markets
Discuss the benefits of international portfolio diversification techniques
Analyse corporate investment and financing decisions in an international setting
Contents
1. Introduction to foreign exchange markets and risk
2. Exchange rate markets and exchange rate risk hedging using internal and external techniques
3. International parity conditions and nominal exchange rate determination
4. Measuring and Managing Real Exchange Risk
5. International capital markets
6. International portfolio diversification
7. Corporate investment and financing decisions in an international setting, project evaluation
2. Exchange rate markets and exchange rate risk hedging using internal and external techniques
3. International parity conditions and nominal exchange rate determination
4. Measuring and Managing Real Exchange Risk
5. International capital markets
6. International portfolio diversification
7. Corporate investment and financing decisions in an international setting, project evaluation
Teaching Methods
The instruction of this course will be based on the presentation and discussion of the different topics, with use of practical exercises and case studies whenever possible. Case studies that complement the main bibliography will be handed out to the students. The evaluation of the student will consist in a written exam and a individual or group report/case study