Enrolment options
This module introduces students to the study field of international finance. It examines international parity conditions that are the underlying determinants of foreign exchange rates. It explores the relationship between prices and exchange rates, defined as purchasing power parity and then explains the relationship between interest and exchange rates. Then, it examines how to forecast foreign exchange rates.
It gives detailed description of how foreign exchange rates are quoted, cross rates are determined, and international arbitrage occurs.
Then this module defines the main types of foreign exchange exposure, namely, transaction, operating, and translation exposure. It analyzes why a firm should or should not hedge one or more of these exposures, and how a firm should measure and manage these exposures.
Finally, it examines how a firm can use the global capital market to minimize its cost of capital and maximize its access to capital.