About This Course
With a focus on practicality, the course of International Finance delves into the movement of currency between nations. At the very beginning of the course, students will learn the basic concepts of foreign exchange and exchange rates, and the unique characteristics of international financial markets. Then, important concepts of balance of payments, as well as analysis of the balance sheet will be covered, followed by exploring purchasing power parity and the relationship between prices, exchange rates, and interest rates, and how to do space arbitrage and time arbitrage. Finally, the evolution of the international financial system will be touched and the practical application of foreign exchange futures and options will be explored. Concentrates on the essence of theoretical and practical contents of international finance, this course aims to equip students with essential knowledge in international finance from a multinational business perspective, fostering understanding, mastery, and practical application in a simple but clear way. For the people who must learn the course are those who work in the field of international operation and management, the capability of English is one of their essential skills. That is why the course is taught in English, which will make students be familiar with the English expression of the terms and concepts in international finance, and improve their capability of English. And more, the course will make up the gap that there is few courses of international finance that was taught in complete English.
The knowledge of International Finance is not easy to be grasped, so this course aims to explain complex concepts in the simplest and clearest way possible, ensuring students reach a level of understanding that enables practical application. And international finance is a course with a high practicality, this course emphasizes real-world relevance by incorporating mini-cases and exercises that will engage students and enhance their learning experience. Each chapter includes ample opportunities for practice and homework to aid students to digest and absorb knowledge. The quality of the course is not only determined by the lecturing quality and content, but also is depended on visually appealing recorded footage, seamlessly integrating animation, real-life scenarios, and characters to captivate students and enhance their interest in learning.
0. Introduction
1. foreign exchange and exchange rate
1.1 foreign exchange
1.2 direct quotation and indirect quotation
1.3 bid and offer rate
1.4 spread and point
1.5 spot rate and forward rate
1.6.1 forward quotation- quote directly
1.6.2 forward quotation-quote indirectly
1.6.3 forward quotations in percentage terms
1.7 basic and cross rate, effective and bilateral rate, official and market rate
2. the foreign exchange market and Eurocurrency markets
2.1 geographic Extent， function of foreign exchange market
2.2 participants of foreign exchange market are various
2.3 the size of foreign exchange market
2.4.1 creation and characteristic of Eurocurrency markets
2.4.2 function and regulation of Eurocurrency markets
3. the balance of payment
3.1 definition of Balance of Payments
3.2 typical BOP transactions
3.3.1 principle of bookkeeping-debit and credit side
3.3.2 principle of bookkeeping-double-entry bookkeeping
3.4.1 from BPM5 to BPM6
3.4.2 component of current account
3.4.3 component of capital and financial account
3.4.4 explore financial account with data
3.4.5 net errors and omissions
3.5 how to record the Balance of Payments
3.6.1 analysis of the CA
3.6.2 analysis of the Net Errors and Omissions
3.6.3 analysis of the BP and macroeconomic variables
3.6.4 analysis of the BP and exchange rate
3.6.5 function of the BPs
3.7.1 J-curve adjustment path
3.7.2 the Marshall-Lerner Condition
3.8 capital flight
4. International Parity Conditions
4.1.1 the law of one price
4.1.2 the law of one price-Big Macs Standard
4.1.3 the law of one price-the gold standard
4.2.1 space arbitrage-bilateral arbitrage
4.2.2 space arbitrage-trilateral arbitrage under one-way quotation
4.2.3 space arbitrage-trilateral arbitrage under two-way quotation
4.3.1 purchasing power parity-Absolute PPP
4.3.2 purchasing power parity-Relative PPP
4.3.3 exchange rate pass-through
4.4.1 uncovered Interested-rate Parity
4.4.2.1 how to cover an uncovered Intrest-rate Abitrag
4.4.2.2 coverd Interest Parity and Abitrag
4.4.2.3 the linkage between UIP and CIP
5. International Monetary System
5.1 introduction of the International Monetary System
5.2.1.1 formation and charateristics of gold（Specie) Standard
5.2.1.2 the content and charateristics of Gold（Specie) Standard
5.2.2 the evolution and derivatives of Gold Standard
5.3.1 the creation and content of the Bretton Woods System
5.3.2 the characteristics of Bretton Woods System
5.3.3 the breakdown of Bretton Woods System
5.4.1 the background and content of the Jamaica System
5.4.2 the classification of IMF's exchange rate regime
5.4.3 the choices of currency regimes for emerging markets
5.5 the impossible trinity
5.6 euro and euro area
6. foreign currency futures
6.1 evolution of Futures
6.2 specifications of future contract
6.3 difference between foreign currency futures and forward contract
6.4 the usage of foreign currency futures
7. foreign currency options
7.1 definition, price elements and types of foreign currency options
7.2 speculating on the spot and forward market
7.3.1 speculate on the option market-to buy and sell a call option
7.3.2 speculating on the option market-to buy and sell a put option
7.4.1 comparison of currency forward, futures and options
7.4.2 the advantages of options
Requirements
There is no prerequisite course is required before students take the course.
Course Staff
Hou Gaolan
Master of Economics graduated from People’s University of China；PhD in Economics from Chinese Academy of Social Sciences; Associate Professor in Beijing Institute of Technology. Professor Hou takes in charge of teaching the course of Macroeconomics, Microeconomics, International Finance and Development Economics. She has published two textbooks of International Finance and Macroeconomics by Qing Hua University Publishing House. In addition, Professor Hou has published more than 40 theses and 2 monographs and complemented a research project of Educational Ministry and other projects from university. She was invited to exchange as a visiting scholar in Cambridge University in the UK, Georgia Institute of Technology in America, Ryerson University in Canada.
