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

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

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