Gwybodaeth Modiwlau

Module Identifier
ABM1820
Module Title
International Finance and Capital Markets
Academic Year
2020/2021
Co-ordinator
Semester
Semester 2
Other Staff

Course Delivery

 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   70%
Semester Assessment Written Essay  (3,000 words)  30%
Supplementary Exam 3 Hours   Students must take elements of assessment equivalent to those that led to failure of the module.  70%
Supplementary Assessment Students must take elements of assessment equivalent to those that led to failure of the module.  30%

Learning Outcomes

On successful completion of this module students should be able to:

1. Analyse and evaluate the merits and demerits of various exchange rate regimes, and the opportunities that arise from intermarket arbitrage.

2. Discuss the main approaches to exchange rate determination and use insights from these to analyse potential drivers of currency crises in emerging economies.

3. Evaluate the implications of fixed and floating exchange rate regimes for macroeconomic policy, and the functioning of goods, money and assets markets.

4. Analyze the main types of currency exposures encountered by MNEs, and strategies they can use to manage such exposures.

5. Examine the instruments available to the global firm to finance its operations and consider the effects of market liquidity and segmentation on the cost of capital.

Brief description

The module provides a thorough exposure to the global financial system, notably the international monetary system, the theories and markets for foreign exchange, foreign exchange exposures and international financial arbitrage, the financing of the global firm and the determinants of foreign investment decisions.

Content

• The foreign exchange market
• Spot, forward, swaps and other types of forex instruments
• Intermarket arbitrage
• The role of expectations and monetary policy in the spot and forward currency markets
• Parity, balance of payments, and asset approaches to exchange rate determination
• Exchange rate forecasting
• Effect of exchange rate on the balance of trade
• Goods, money, and asset markets under fixed and floating exchange rates
• Stabilization policy
• Currency exposures and risk management for multi-national enterprise
• Market liquidity , segmentation, cost and availability of capital
• Equity and debt instruments for MNEs
• Foreign investment risks and their source

Module Skills

Skills Type Skills details
Application of Number Use of and manipulation of quantitative data.
Communication Written via essays. Verbal via participation in seminars.
Improving own Learning and Performance Private study and time keeping.
Information Technology Use of internet and social media etc.
Personal Development and Career planning
Problem solving Identify the nature of the problem, and select an appropriate solution .
Research skills Use of internet and web material as well as general use of the library.
Subject Specific Skills By following and participating fully in the module via attendance at lectures and seminars and reading the material set in the syllabus as well as reading around the subject matter.
Team work Seminar collaboration and participation.

Notes

This module is at CQFW Level 7