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:

Tuugi Tugsjargal Chuluun

Lecturer:

Tuugi Tugsjargal Chuluun

Tutor:

Aliya Algozhina, Tuugi Tugsjargal Chuluun

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)- 50%

Team Project- 30%

Discussions and Presentations- 20%

Exams (50%)

There will be two exams during the semester: midterm and final exam. Each exam is worth 25% 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 examples 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 four students.

Discussions and Presentations (20%)

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 presentations and 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: Foreign Exchange Market and International Parity Relationships

The Market for Foreign Exchange

International Parity Relationships and Forecasting Exchange Rates

Part 3: Hedging Foreign Exchange Risk

Futures and Options on Foreign Exchange

Management of Transaction Exposure

Part 4: Investing Internationally

International Bond Markets

International Equity Markets

Foreign Direct Investment

International Portfolio 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 examples 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, 10th edition, McGraw-Hill.

2) Course materials posted on Moodle. These include lecture notes, problem sets, and assigned articles etc.

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

Note:

This course is taught in English.

Time-table for winter semester 2024/2025:

Time-table is not available yet

Time-table for summer semester 2024/2025:

	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
Wed	roomDEJ:120 Tugsjargal Chuluun T. 10:45–12:15 (lecture parallel1) Dejvice roomDEJ:120 Tugsjargal Chuluun T. 12:30–14:00 (parallel nr.101) Dejvice
Thu
Fri

The course is a part of the following study plans: