Module Identifier ECM2020  
Module Title INTERNATIONAL FINANCE IN EMERGING MARKETS  
Academic Year 2007/2008  
Co-ordinator Dr Jose M Varas  
Semester Semester 2  
Course delivery Lecture   12 lectures of 2 hours each  
  Seminars / Tutorials   6 tutorials of 1 hour each  
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  75%
Semester Assessment Essay 2000 words  20%
Semester Assessment Presentation 20 minutes  5%
Supplementary Exam2 Hours  100%

Learning outcomes

On successful completion of this module students should be able to:
Analyze the existing differences between developed and developing financial markets.

Evaluate the contribution of financial markets toward economic growth.

Discuss the implications of exporting financial models and institutions to emerging markets without an adequate adjustment to local conditions.

Demonstrate the use of qualitative and quantitative skills to detect potential market crises.

Discuss the advances reached in the area of financial risk analysis, aiming for the homogenization of criteria between developed and less developed markets.

Analyze the criteria that attract investors to emerging financial markets.

Content

1. Defining Emerging Markets
2. Financial Institutions and their impact in Emerging Economies
3. Financial Intermediation crisis in Emerging Markets
4. Emerging Markets┬┐ efficiency problems
5. Tracking Emerging Markets
6. Evaluation of risk in emerging markets
7. Investing in Emerging Markets

Brief description

ECM2020 will analyse the existing contrasting conditions between developed and developing financial markets, and consider how the awareness and understanding of these differences can contribute to the harmonization of global interaction between financial markets.
The module will address the contribution of financial markets towards the development of emerging markets. Analyzing the effects of how financial intermediation activities in developing countries have been transformed by the influence of the process of aperture to global financial markets. The course will also analyze the reasons for the existence of frictions between financial markets according to their degree of development, and the problems of reaching a perfect integration between them. Additionally, it will study how disparities had eroded or even removed the possibility of applying traditional financial models in emerging markets. The module will also cover a set of tools that will permit study of the characteristics of an emerging market, and identify the main causes that could be an impediment to successfully importing financial models and institutions from more developed countries. The currently postulated alternatives to account for the imperfections of emerging financial markets and the risk that could represent for international investors, will also be revised. Last but not least the module will consider how to conduct an investment policy in an emerging market.

Module Skills

Problem solving The characteristics of the content of the module, demand the participants to apply analytical skills to reason and understand the challenging nature of the subject. These skills will have to be applied in tutorial discussions, preparation of course work, and in the exam. The essay as well as the final examination will ensure that an assessment of the student's ability to work independently and their capacity to solve problems.  
Research skills The students will have to prepare an individual essay about a country based on data and information that they will have to collect, having to arrange coherently in a written document all the relevant material gathered.  
Communication Oral presentation of the essay, as well as tutorial participation will encourage the students to develop communication skills.  
Improving own Learning and Performance The learning of the students will be improved by undertaking directed but independent study and research, the module will allow the students to decide upon the direction taken for their essay submission, helping to developed their analytical capacities. Time management will be crucial in preparation for the assessments.  
Team work During the tutorial sessions the students will be encouraged to voluntarily participate in group discussions using study cases. The essay work requested for the module should be completed individually.  
Information Technology The use of electronic databases, mathematical software and electronic journals are highly relevant for the completion of the essay. The presentation of the essay will also require the use of word-processing software as well as the skill to prepare an electronic presentation of their work.  
Application of Number The course work and exam incorporate numerical techniques to analyze financial markets.  
Personal Development and Career planning The module provides content which may prove highly valuable for many students in their later careers, permitting them to have an understanding that goes beyond country boundaries, making the student capable of understanding and adapting to global financial environments. The process of developing their essays will also contribute to their transferable skills.  
Subject Specific Skills Analytical Skills  

Notes

This module is at CQFW Level 7