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International Finance

► International finance – also known as international macroeconomics – is a section of financial economics tha...

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International finance – also known as international macroeconomics – is a section of financial economics that deals with the monetary interactions that occur between two or more countries. This section is concerned with topics that include foreign direct investment and currency exchange rates. International finance also involves issues pertaining to financial management, such as political and foreign exchange risk that comes with managing multinational corporations.✦

Some examples of key concepts within international finance are the Mundell–Fleming model, the optimum currency area theory, purchasing power parity, interest rate parity, and the international Fisher effect. ✦

The three major components setting international finance apart from its purely domestic counterpart are as follows:✦

Foreign exchange and political risks.
Market imperfections.
Expanded opportunity sets.


Topics Covered in This App are Listed Below】

International Finance Introduction

Importance of International Finance

International Financial Globalization

Driving Forces of Financial Globalization

Changes in Capital Markets

Benefits and Risks of Financial Globalization

Safeguarding Financial Stability

Balance of Payments

Current Account and Capital Account

BOP Table for a Hypothetical Country

BOP Imbalances

Reasons behind BOP Imbalances

How to Correct BOP Imbalances

Forex Market Players

Commercial and Investment Banks

Central Banks

Businesses and Corporations

Fund Managers, Hedge Funds, and Sovereign Wealth Funds

⇢ Internet-based Trading Platforms

Online Retail Broker-Dealers

The Interest Rate Parity Model

Covered Interest Rate Parity (CIRP)

Uncovered Interest Rate Parity (UIP)

Implications of IRP Theory

Monetary Assets

Demand and Supply of Currency in Forex Market

International Finance - Exchange Rates

Changes in Exchange Rates

Interest Rates

Forex Intervention

Why Forex Intervention?

⇢ Non-intervention

Direct Intervention

Indirect intervention

Money Market

International Money Market

The International Monetary Market

The Drawbacks of Currency Futures

⇢ A System for Transactions

Financial Crises and Liquidity

International Bond Markets

Float

Ways to Manage Cash

What is trade finance?

International Trade Finance

International Trade Payment Methods

Trade Finance Methods

Bond Investments

Market Structure, Trading Practices, and Costs

International Equity Markets

Trading In International Equities

Yankee Stock Offerings

American Depository Receipts (ADR)

Global Registered Shares (GRS)

Factors Affecting International Equity Returns

Exchange Rate Forecasts

Exchange Rate Forecast: Approaches

Models

Exchange Rate Fluctuations

Types of Exposure

Economic Exposure – An Example

Calculating Economic Exposure

Determining Economic Exposure

Managing Economic Exposure

Foreign Currency Futures & Options

Long and Short Currency Trading

Foreign Currency Futures

Options on Currency Pairs

Options on Currency Futures

Translation Exposure – An Exhibit

Hedging Translation Exposure

International Finance - Economic Exposure

Regression Equation

Economic Exposure

Foreign Direct Investment

FDI Definition

FDI and its Types

Why is FDI Important?

FDI Basic Requirements

⇢ Long-Term & Short-Term Financing

Working Capital Management

Importance of International Finance

Driving Forces of Financial Globalization

Current Account and Capital Account

BOP Imbalances

Forex Market Players

Businesses and Corporations

⇢ Internet-based Trading Platforms

What is Interest Rate Parity?

Covered Interest Rate Parity (CIRP)

International Finance - Monetary Assets

International Finance - Exchange Rates

International Finance - Interest Rates

International Finance - Forex Intervention

Last update

April 18, 2020

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