国际通识课程 14.Syllabus of International Finance

时间：2018-06-11

<span style="font-family:"times new roman";font-size:18px;">SYLLABUS OF INTERNATIONAL FINANCE</span>

SYLLABUS OF INTERNATIONAL FINANCE



Instructor: Chen chuanxing

Office Phone:51278080

Email:chenchuanx284@sina.com



REQUIRED TEXT

 1. INTERNATIONAL FINANCIAL MANAGEMENT, CHEOL S. EUN, BRUCE G. RESNICK, BY MCGRAW-HILL COMPANIES. 2000

 2. INTERNATIONAL ECONOMICS, EIGHTH EDITION, DOMINICK SALVATORE, JOHN WILEY & SONS INC. 2004


DESCRIPTION

This course introduces the student to the basic concepts, theories, and areas of study that comprise the field of International Finance. This course aims at helping the students to lay solid fundamentals of research and work in the field of international finance in the future. This course will enable to help the students understand and master the basic concepts and theories, strengthen their ability to engage in the theoretical research and practical work, to think independently, and to analyze and solve the problems.Throughout this course we will discuss theimpact of both theory and policy on finance and economic growth.


OBJECTIVES

This course will be taught by using multi-medium, stressing basic concepts and basic theories, paying more attention to help the students to master the basic skills, applying international finance theories into Chinese economy in order to strengthen the ability to combine theories with practice, master the structure and contents of textbook, deepen the comprehension and application of basic knowledge so as to enhance the interest of their study.

Upon satisfactory completion of the course, students should:

  • Be able to understand the concepts and principles of international finance

  • Enhance their ability to analyze and solve problems

  • Familiarize the students with the approaches, techniques and policies of   international finance

  • Apply a series of basic international finance principles to practice



COURSE ASSESSMENT

  • Class Attendance: 10%. Responsible attendance is expected of each individual enrolled in this course. Iwill circulate a sign-up sheet every day that we are scheduled to meet and you will forfeit one full percentagepoint for every unexcused absence beyond three. If you miss a lecture you  are responsible for obtaining anymissed notes and/or handouts on your own unless you are officially excused.

  • Group/individual presentation & Class discussion: 20%. Students will be assigned presentations  on the course topics, and are encouraged to actively participate in the class discussion.

  • Assignment: 20%. The students should finish the assignments such as key concepts, questions for review, problems and application in the related chapters, and hand in them on time.

  • Examinations: 50%.  There will be 2  examinations (please note specific days and dates listed in the calendar) including the Midterm and Final examinations during this semester.  Midterm Exam will be worth 20%, while the Final will be worth 30%. The questions will come from the assigned reading material, the lecture notes, as well as classdiscussions and exercises. Test paper  will be presented withdefining, multiple choice, true/false,  short essay, and long essay questions.



COURSE CONTENTS



Topics

Class  Hours


Week

1

  TOPIC ONE

  Balance of Payments


  • Balance-of-Payments Accounting Principles.

  • The International Transactions of the U.S.A.

  • Accounting Balances and Disequilibrium in International Transactions.

  • The International Investment Position of the U.S.A.

  • The Postwar Balance of Payments of the U.S.A.


  3



Week

2-3

  TOPIC TWO

  Foreign Exchange Markets and Exchange Rates


  • The Functions of the Foreign Exchange Markets.

  • Foreign Exchange Rates.

  • Spot and Forward Rates, Foreign Currency Swaps, Futures, and Options.

  • Foreign Exchange Risks, Hedging, and Speculation.

  • Interest Arbitrage and the Efficiency of Foreign Exchange Markets

  • Eurocurrency and Offshore Financial Market.


  6



Week

4-5

  TOPIC THREE

  Exchange Rates Determination


  • Purchasing-Power Parity Theory.

  • Monetary Approach to the Balance of Payments and Exchange Rates.

  • Asset Market Model and Exchange Rates.

  • Exchange Rates Dynamics.

  • Empirical Tests of the Monetary and the Asset Market Model and Exchange Forecasting.


  6



Week

6-7

  TOPIC FOUR

  The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates


  • Adjustment with Flexible Exchange Rates.

  • Effect of Exchange rates Changes on Domestic Prices and the Terms of Trade.

  • Stability of Foreign Exchange Markets.

  • Elasticities in the Real World.

  • Adjustment Under the Gold Standard.


  6



Week

8-9

  TOPIC FIVE

  The Income Adjustment Mechanism and Synthesis of Automatic Adjustments


  • Income Determination in a Closed Economy.

  • Income Determination in a Small-Open Economy.

  • Absorption Approach.

  • Monetary Adjustments and Synthesis of the Automatic Adjustments



  6



Week

10-11

  TOPIC SIX

  Open-Economy Macroeconomics: Adjustments


  • Internal and External Balance with Expenditure-Changing and Expenditure –Switching Policies.

  • Equilibrium in the Goods Market, in the Monet Market, and in the Balance of Payments.

  • Fiscal and Monetary Policies for Internal and External Balance with Fixed Exchange Rates.

  • The IS-LM-BP Model with Flexible Exchange Rates.

  • Policy Mix and Price Changes.

  • Direct Controls


  6



Week

12-13

  TOPIC SEVEN

  Prices and Output in an Open Economy: Aggregate Demand Aggregate Supply


  • Aggregate Demand, Aggregate Supply, and Equilibrium in a Closed Economy.

  • Aggregate Demand in an Open Economy under Fixed and Flexible Exchange Rates.

  • Effect of Economic Shocks and Macroeconomic Policies on Aggregate Demand in Open Economies with Flexible Exchange Rates.

  • Effect of Fiscal and Monetary Policies in Open Economies with Flexible Rates.

  • Macroeconomic Policies to Stimulate Growth and Adjust to Supply Shocks

The Optimum Tariff.


  6



Week

14-15

  TOPIC EIGHT

  Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination


  • The Case for Flexible Exchange Rates.

  • The Case for Fixed Exchange Rates.

  • Optimum Currency Areas, the European Monetary System, and the European Monetary Union.

  • Currency Board Arrangements and Dollarization.

  • Exchange Rates Bands, Adjustable Pegs, Crawling Pegs, and Managed Floating.



  6



Week

16-17

  TOPIC NINE

  The International Monetary System: Past, Present, and Future


  • The Gold Standard and the Interwar Experience.

  • The Bretton Woods System.

  • Operation and Evolution of the Bretton Woods System.

  • U.S Balance of Payments Deficits and Collapse of the Bretton Woods System.

  • The International Monetary System: Present and Future



  6



Week 18

  General Review and Final Examination



  3




Total Hours

54