International Finance

Course Code:


Course Name:

International Finance



Course Description

This course focuses on the foreign exchange market and major approaches to analyse the determination of exchange rates, the links between exchange rates, macroeconomic activity and a country’s international competitiveness. The main objectives are to familiarise students with the institutional structure, the nature of the trading procedures, and trading activity in foreign exchange (FOREX) markets; the international parity conditions: purchasing power parity, covered and uncovered interest rate parity, and real interest parity; the equilibrium real exchange rate and its determinants; issues relating to the efficiency of foreign exchange markets and the forward bias puzzle; the pricing of international financial assets and their role in financing and investment decisions.