International Financial Management

Relations:

It is not possible to register for the course 32ME-P-IFMN-01 if the student is concurrently registered for or has already completed the course G63E1302 (mutually exclusive courses).

During a review of study plans, the course G63E1302 can be substituted for the course 32ME-P-IFMN-01.

Course guarantor:

Aliya Baqyt

Lecturer:

Aliya Baqyt

Tutor:

Helmuth Yesid Arias Gomez, Aliya Baqyt

Supervisor:

Institute of Economic Studies

Synopsis:

In this course, you will explore the world of global finance and extend the principles of finance to an international setting. Throughout the course, the emphasis will be on dealing with exchange risk and market imperfections using various instruments and techniques available, while maximizing the benefits from the expanded global opportunity set. Students will develop an understanding of key topics such as corporate governance around the world, foreign exchange markets, determination and forecasting of exchange rates, foreign exchange risk management, and international direct and portfolio investments.

Our primary focus is to understand how theoretical concepts translate into real-world applications. To bridge the gap between theory and practice, students will engage in comprehensive research and analysis of a country and its economy throughout the semester in teams. As we cover various topics in class, you will research how those topics apply to your country and collaborate on presentations that showcase your findings to the class. We will also discuss recent developments in the global financial markets and analyze up-to-date international economic and financial data.

Requirements:

Grading Distribution:

Exams (Midterm and Final Exam) - 60%

Team Project - 30%

Discussions - 10%

Exams (60%)

There will be two exams during the semester: midterm and final exam. Each exam is worth 30% of your final course grade. Before each exam, we will review the materials to be covered on the upcoming exam. Working on problem sets and exercises and paying attention in class to both lectures and discussions are the key to performing well on the exams.

Team Project: Country Analysis and Presentation (30%)

To deepen your understanding of the real-world applications of our class topics, you will work in teams to research and analyze a selected country and its multinational corporations (MNCs). You will present your findings to the class. The objectives are to apply class concepts to real-world scenarios, develop financial research and data analysis skills, and enhance your ability to clearly present complex information. In the first week, you will choose a country on Moodle. Each country team can have up to three students.

Discussions (10%)

One of the most important skills in finance and business is understanding how current events and conditions impact firms and investors. Thus, we hold student discussions of the latest global financial market developments each week.

Syllabus of lectures:

Part 1: Foundations

Introduction to International Finance

International Monetary System

Balance of Payments

Part 2: The Foreign Exchange Market and Currency Derivatives

The Market for Foreign Exchange

International Parity Relationships and Forecasting Exchange Rates

Futures and Options on Foreign Exchange

Part 3: Hedging Foreign Exchange and Interest Rate Risks

Management of Transaction Exposure

International Bond Market

International Equity Markets

Interest Rate and Currency Swaps

Part 4: Investing Internationally

International Portfolio Investment

Foreign Direct Investment

Syllabus of tutorials:

Regular attendance and active participation in class meetings are crucial for success in this course. Our seminar sessions are dynamic and designed to apply the concepts we learn. We will engage in discussions about current events and the country analysis project, as well as work through exercises and practice problems.

Study Objective:

The primary objective is to provide students with the knowledge and tools needed to navigate exchange risk and market imperfections using a variety of instruments and techniques, while maximizing the benefits from the broadened global opportunity set. By the end of the course, students will have developed a deep understanding of the key international finance topics and their practical applications in the real world

Study materials:

1) International Financial Management, by Eun, Resnick, and Chuluun (2024), 10th edition, McGraw-Hill.

2) Course materials posted on Moodle. These include lecture slides, podcasts, problem sets, assignments, articles, etc.

3) Regular reading of the Financial Times, Wall Street Journal, or similar financial publications is highly encouraged.

Note:

We are now living in a world where all the major economic functionsconsumption, production, and investmentare globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a few decades ago, when international aspects of finance were not seriously considered. (Eun, Resnick & Chuluun, 2024, p. 4).

Time-table for winter semester 2025/2026:

Time-table is not available yet

Time-table for summer semester 2025/2026:

	06:00–08:0008:00–10:0010:00–12:0012:00–14:0014:00–16:0016:00–18:0018:00–20:0020:00–22:0022:00–24:00
Mon
Tue	roomDEJ:403 Algozhina A. 09:00–10:30 (lecture parallel1) Dejvice roomDEJ:403 Baqyt A. 10:45–12:15 (parallel nr.101) Dejvice
Wed
Thu
Fri

The course is a part of the following study plans:

• prezenční - Project and Process Innovation Management, N0413A050002 Projektové řízení inovací (compulsory elective course)
• prezenční - Management inovací v regionech, N0413A050002 Projektové řízení inovací (compulsory elective course)
• prezenční - Management moderních výrobních technologií, N0413A050002 Projektové řízení inovací (compulsory elective course)
• prezenční - European Union And Regional Policy, N0413A050002 Projektové řízení inovací (compulsory elective course)
• prezenční - Spolupráce soukromého a veřejného sektoru, N0413A050002 Projektové řízení inovací (compulsory elective course)
• prezenční - Sustainability and Climate Change, N0413A050002 Projektové řízení inovací (compulsory elective course)