The objective of this course is to provide an understanding of the international financial markets and the essential elements of international financial management. The rise of multinational firms, the rapid development of global capital markets and the surge in foreign investment since the early 1990s have all made corporate finance increasingly dependent on international developments, exchange rates and international financial markets.
The course encompasses several broad topics. After an introduction to the subject area of International Finance and to the concept of money, the course proceeds with an overview of the international monetary system and major organizations influencing international finance We then discuss financial integration and currency unions, in particular in the context of the EU. Another topic is related to international exchange rates, their impact on the economy, and the factors behind exchange rate movements. This is followed by the concept of risk management of exchange rate risk, looking at the financial instruments available in international financial markets for hedging purposes.
The next group of topics concentrates on the international financial environment, the flow of funds between countries, the international financial markets and the causes and consequences of financial crises. A special topic will look at issues related to international taxation, such as the basic aspects of international tax law, taxation treaties and related model conventions. The impact of the COVID-19 pandemic on international finance will be discussed as well.
- Teacher: ILIAN ASSENOV