Llicenciatura en Administració i Direcció d'Empreses (3323)
Llicenciatura en Economia (3322)

Economia Financera Internacional(10132) 

The goal of the class is to acquaint students with issues in international finance. The first part of the class describes the organization of currencies markets and presents theories of exchange rates determination which are relevant for financial decisions. The second part proposes an introduction to portfolio management in an international environment and describes the financial instruments used to hedge currency risk. The problems posed by the extension of the traditional capital asset pricing model to an international environment are discussed also.

I. CURRENCIES MARKETS

Tema 1. Foreign exchange markets

Historical background, organization, satellite markets (forward, futures and options markets on currencies), exchange rate regimes and Central Bank Interventions.

Tema 2. Exchange Rates Determination and Exchange Rate Risks

International parity relationships (exchange rates, inflation and interest rates), forecasting exchange rates, balance of payment approach and monetary approach to exchange rate determination, empirical findings concerning theories of exchange rate determination.

Tema 3. Euro-Markets

Historical background, organization and functions, the economics of Euro-Markets, Euro-bond markets.

II. INTERNATIONAL CAPITAL MARKETS

Tema 4. International Portfolio Management

International diversification, CAPM in an international environment, Segmentation versus Integration.

Tema 5. Currency Risk Management

Futures and Options on Currencies: principles and use. Swaps of currencies and interest rates.

Bibliografia

1a. part

KRUGMAN, P.R.; OBSTFELD, M. Economía Internacional. Teoría y Política. 2a. ed. Nova York: McGraw-Hill, 1994.

RIVERA-BATIZ, F.L.; RIVERA-BATIZ, L.A. International finance and Open Economy Macro-Economics. 2a. ed. Nova York: McMillan Publishers, 1994.

SOLNIK, B. International Investments. Reading (Mass.): Addison-Wesley, 1991.

2a. part

ADLER, M.; DUMAS, B. "International Portfolio Choice and Corporation Finance: a Synthesis" . Journal of Finance, 38, 1983. Pàg. 925-984.

SOLNIK, B. International Investments. Reading (Mass.): Addison-Wesley, 1991.