INTERNATIONAL FINANCE

Single discipline educational activity

Course Sheet

Course code:

LM57002

Academic Year of enrolment:

2019

Year of supply:

2019/2020

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in MANAGEMENT, FINANCE AND DEVELOPMENT

Disciplinary Sector:

Political Economy

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

GIULIONI Gianfranco

Cycle:

First semester

Hours of classroom activity:

Individual study hours:

153

Prerequisites:

It is desirable that the student has preliminary knowledge of microeconomics and macroeconomics. However, the prerequisites for these disciplines are not required.

Objectives

EDUCATIONAL GOALS

The course aims to provide students with the tools to understand the economic dynamics that act on an international and global scale. The comprehension of the effects that these dynamics have on the sectoral and territorial systems is a useful link with other economic disciplines of the course of study. The course's teachings are therefore an important step to achieve the training objectives of the entire course of study: the acquisition of strong professionalism with high and complex skills essential for the definition and management of strategies suitable to face highly evolving contexts and always more competitive.

EXPECTED LEARNING RESULTS

Knowledge

At the end of the course the student will have knowledge and understand the aspects related to international finance. The determinants of the exchange rate and the effects of changes in this rate on the economic system play a particularly important role. The student will also have to know the main exchange rate regimes and the different effect that macroeconomic policies have in these different schemes. Understanding the main issues related to globalization, optimal currency areas and the financial aspects of developing countries will be an integral part of the student's educational process.

skills

The acquired knowledge can be applied in the financial sector, in public and private companies, consortia of companies, business and social associations, research organizations, government institutions (local, national and international), development agencies for:
- develop mechanisms to hedge against exchange rate risk in import / export companies;
- develop strategies for the procurement of raw materials quoted in foreign currencies;
- manage financial investments in different territorial contexts;

Autonomy of judgment

At the end of the course the student will:
- knowing how to decide independently on the opportunity to make financial investments in foreign currency;
- know how to assess the reliability of different nations based on their macroeconomic conditions in the global economic context.

Communication skills

At the end of the course the student will:
- know how to inform about the advantages and disadvantages of making financial investments in foreign currency;
- know how to collaborate and dialogue with other specialists in the international finance sector.

Ability to learn

At the end of the course the student will:
- be able to autonomously learn advanced concepts in specialized topics related to international finance.

Contents

In the first part of the course the main theories of exchange rate determination are analyzed. The role that monetary and financial variables play in such theories is particularly highlighted. The study of the effects of Monetary Policy maneuvers on the relevant quantities such as interest rates and the price level plays a central role in this part of the course.
In the second part of the course, the notions acquired in the first part are used to evaluate the relationships between the financial sector and the real economy in an international context. The effects of economic policy maneuvers on the dynamics of the exchange rate, the interest rate, the price level, the aggregate production, employment and the trade balance, both in a context of free exchange rate fluctuation both in controlled exchange rate situations.

Extended Syllabus

1. Introduction

PART I - Exchange rates and macroeconomics in an open economy
2. National accounting and balance of payments
3. Exchange rates and currency markets: a portfolio approach
4. Money, interest rates and exchange rates
5. Price level and long-term exchange rate
6. Production and exchange rate in the short term
7. Fixed exchange rates and interventions in the foreign exchange market
PART II - International macroeconomic policies
8. The international monetary system: a historical overview
9. Financial globalization: opportunities and crises
10. The optimal currency areas and the European experience
11. Developing countries: growth, crisis and reform

Recommended Bibliography

Krugman, Obstfeld e Melitz (2015) International Economics 2, Pearson
Additional material will be made available at the following URL:
http://erre.unich.it/giulioni

Teaching Methods

The teaching activity will be delivered through meetings lasting two hours for a total amount of 72 hours. The meetings will mainly consist of lectures by the teacher aimed at achieving the educational objectives of the course. Educational activities can also be carried out through seminars held by experts, group work or laboratory experiences.

Evaluation methods

Verification of learning:

Students' preparation will be verified by written exam consisting of open questions with predefined response space and multiple choice questions. The final mark will be expressed in thirtieths. The duration of the written test is 1 hour. The topics under examination will reflect those dealt with during the course and present in the program.

Contacts/More Information

Additional information are available at: http://erre.unich.it/giulioni
The teacher carries out learning support activities both through reception on site and via online conference call upon appointment.

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree