MPF_AIFI International Finance

Ekonomicko-správní fakulta
podzim 2023
2/1/0. 5 kr. Ukončení: zk.
Oleg Deev, Ph.D. (přednášející)
Ing. Michala Moravcová, Ph.D. (přednášející)
Ing. Michala Moravcová, Ph.D. (cvičící)
Ing. Michala Moravcová, Ph.D.
Katedra financí – Ekonomicko-správní fakulta
Kontaktní osoba: Mgr. Jana Nesvadbová
Dodavatelské pracoviště: Katedra financí – Ekonomicko-správní fakulta
Út 14:00–15:50 P104, kromě Út 19. 9., kromě Út 7. 11.
  • Rozvrh seminárních/paralelních skupin:
MPF_AIFI/01: Út 11:00–11:50 VT105, kromě Út 19. 9., kromě Út 7. 11., M. Moravcová
(! MPF_MEZF Mezinárodní finance ) && ! NOWANY ( MPF_MEZF Mezinárodní finance ) || (! MPF_MEFI Mezinárodní finance )
Macroeconomics, Statistics, Financial management, Financial Markets and investments, Security analysis
Omezení zápisu do předmětu
Předmět je určen pouze studentům mateřských oborů.

Předmět si smí zapsat nejvýše 25 stud.
Momentální stav registrace a zápisu: zapsáno: 7/25, pouze zareg.: 0/25
Mateřské obory/plány
Cíle předmětu
The main objective of the course is to introduce students to theoretical concepts of international finance with applications in exchange rate forecasting, financial management of multinational corporations, and risk analysis of international financial operations. The course addresses different practical aspects of international finance, including the organization of foreign exchange markets, investment decisions in the international context, basic tools and concepts of international financial management from the perspective of risks and returns. Understanding the foreign exchange markets and global capital markets (banking, debt, and equity) is necessary to carry out a sound and effective management of the multinational firm from a financial point of view. And since multinational corporations face opportunities but also risks, financial management involves the design of risk assessment techniques and appropriate strategies to hedge the company from actual and potential risks through the use of the different types of financial assets (such as derivatives).

Výstupy z učení
Student will be able to:
- understand international financial relations and all their aspects,
- understand the exchange rates and the foreign exchange market operations,
− comprehend basic concepts of risk management,
− perform an analysis of property and business risks,
− provide insurance coverage suggestions based on the client’s risk analysis,
− evaluate the risk management process and system in insurance,
− compare the results for different methods of risk identification and analysis utilized by insurance companies,
− propose the ways of insurance risk mitigation/transfer via the financial market.
  • 1. Course introduction and overview. The scope and environment of international finance. Characteristics of main players (multinational corporations and international financial institutions).
  • 2. Foreign exchange markets: organization and participants. Transaction exchange risk: definition, basic calculations, and hedging opportunities. Organization of the forward foreign exchange market.
  • 3. Exchange rate systems and associated currency risks. Basic concepts and equations for exchange rate calculations.
  • 4. International parity conditions. Interest rate parity. Purchasing power parity and real exchange rates. Fisher effect. Expectations theory.
  • 5. International parity conditions. Interest rate parity. Purchasing power parity and real exchange rates. Fisher effect. Expectations theory.
  • 6. Exchange rate regimes, central banks, and multinational corporations.
  • 7. Exchange rate determination and forecasting. Forecasting techniques: fundamental, technical, and statistical analyses.
  • 8. Measuring and Managing Real Exchange Risk. How Real Exchange Rates Affect Real Profitability of Exporters and Importers, Pricing Strategies, Managing Real Exchange Risk.
  • 9. Country risk analysis. Political and financial risks. Techniques for assessing country risks. Incorporating risk in capital budgeting.
  • 10. Managing Net Working Capital. International Cash Management. Inventory Management.
  • 11. International Debt and Equity Financing. Sources of Funds for International Firms. Minimizing the cost of debt internationally.
  • 12. International Capital Budgeting. Adjusted Net Present Value. Net Present Value of Free Cash Flow.Financial Side Effects. Tax implications.
    povinná literatura
  • BEKAERT, Geert a Robert J. HODRICK. International financial management. Third edition. Cambridge: Cambridge University Press, 2018, x, 1036. ISBN 9781107111820. info
  • Outline of the lectures are available in the Study Materials.
    doporučená literatura
  • PAUL, Krugman. International Finance: Theory and Policy. Pearson Education Limited, 2022. ISBN 978-1-292-41700-4. info
  • KOCENDA, Evzen a Michala MORAVCOVA. Intraday effect of news on emerging European forex markets: An event study analysis. Economic Systems. 2018, roč. 42, č. 4, s. 597-615. ISSN 0939-3625. Dostupné z: info
Výukové metody
The course is taught in lectures and seminars, which include class discussions and require active participation. Seminars are designed to get practical knowledge of international finance. Thomson Reuters Refinitiv is employed in the seminars.
Metody hodnocení
For the course's successful completion, students must take a written exam, actively perform in the seminars and lectures, and submit two homeworks: the first homework (November, 17th) will compile a set of problems, which will be discussed at the seminar and the second is currency report (December, 15th). Currency reports mainly analyze and forecast exchange rates and are routinely prepared and distributed by investment banks to clients worldwide. The investment opportunities report usually contains detailed suggestions on portfolio allocation per financial instrument in a specific country alongside possible risk management solutions. The suggestions should be reasonable and justified. Students should use qualitative and quantitative methods to support conclusions in report based on the data from the Thomson Reuters Terminal.

Following is the scale that will be used to evaluate your performance in this class:
- Homework up to 10-grade points
- Currency Report up to 20-grade points
- Final exam (up to 70-grade points, minimum 50% required). The exam will be cumulative on the material from the entire course.

-active participation in the class, extra 10 points available.

Students cannot take an exam without submitting homework and a Currency report with all the requirements fulfilled. Active participation in class means that the student is actively watching, listening, and answering questions as the lecture progresses. A student also tries to solve the suggested example problems as the lecture proceeds and proves that he/she has learned the material by answering the related questions and working on the related problems. Participation quality (thoughtfulness of comments or questions) is valued more than participation quantity (frequency of comments/ questions). In the event of student's departure abroad, the student is obliged to contact the teacher before departure and agree on the dates for fulfilling the stated conditions.
Vyučovací jazyk
Informace učitele
Final grades would be given according to the following grading scale:
A 92 – 100 %, B 84 – 91 %, C 76 – 83 %, D 68 – 75 %, E 60 – 67 %, F méně než 60 %)

Students in this course are expected to adhere to the Masaryk University’s high standards of integrity as spelled out in the Disciplinary Code for Students and Directive N.3/2008. Anyone who cheats on exams or submits homework that is not their own will be subject to the penalties outlined in the Code. Any copying, recording, or leaking tests, use of unauthorized tools, aids, and communication devices, or other disruptions of objectivity of exams will be considered non-compliance with the conditions for course completion and a severe violation of the study rules. Consequently, the teacher will finish the exam by awarding a grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.

Další komentáře
Studijní materiály
Předmět je zařazen také v obdobích podzim 2015, podzim 2016, podzim 2017, podzim 2018, podzim 2019, podzim 2020, podzim 2021, podzim 2022, podzim 2024.