| | Searching Current Courses For Fall 2016 |
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Course: |
FIN 210
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Title: | International Finance |
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Long Title: | International Finance |
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Course Description: | Examines the basics of the foreign exchange market and exchange rate determination. The course will discuss creating and adjusting currency positions covering hedging, currency options, forecasting of exchange rates and the principals of parity. Topics covered include the balance of payments, past and present international monetary arrangements, the role of the International Monetary Fund and the World Bank, import and export financing, financial management of the multinational firm, the international money market and Macroeconomic policy in an Open Economy. |
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Min Credit: | 3 |
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Max Credit: | |
STANDARD COMPETENCIES:
I. Develop an understanding of floating exchange rate systems and how the spot market works.
II. Develop an understanding of fixed and managed or ¿dirty¿ float exchange rate systems
III. Explain how arbitrage helps maintain an efficient exchange rate system
IV. Demonstrate an understanding of the Balance of Payments
V. Describe the past international monetary relations with respect to the gold standard
VI. Develop an understanding of why the International Monetary Fund (IMF) was formed, and how it works
VII. Explain why currency boards developed and their function in the exchange market system
VIII. Develop an understanding of the forward exchange market and how banks use swaps instead of the forward exchange market
IX. Develop an understanding of the role of the futures market in the exchange rate system
X Develop an understanding of the role of option in the exchange rate system
XI. Explain the relationship between exchange rates and interest rate
XII. Describe the concepts of exchange risk and how international firms try to reduce their exposure
XIII. Explain the process of foreign exchange forecasting
XIV. Explain how diversification can help eliminate nonsystematic risk
XV. Explain the importance of direct foreign investment and capital flight
XVI. Develop an understanding of how purchasing power parity effects the exchange rate system
XVII. Develop an understanding of how purchasing power parity effects the exchange rate system
TOPICAL OUTLINE:
I. International Risk including Exchange rate, Economic and Political
II. Balance of Payment Accounting, Measures of Imbalance
III. Analyze Exchange Rate Determination and the Gold Standard
IV. The Spot and Forward Exchange Market
V. Parity and Exchange rate relationships
VI. Creating and Adjusting Currency Positions, Hedging
VII. Currency Options
VIII. Macroeconomic Policy and the International Markets
IX. Letters of Credit and International Trade
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Arapahoe Community College |
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