| Description
| This course provides the introduction to the workings of the foreign exchange markets, the impact of economic policy on exchange rates, the nature of foreign exchange risk, and the effects of various international economic policies on domestic and world welfare. The course content will include balance of payments, determination of foreign exchange rates, and international monetary system, and cover the following topics: foreign exchange market; the interest rate parity theorem; exchange rates and inflation; purchasing power parity; balance of payments and national income accounting; the determination of the exchange rate. In addition, we focus on how multinational corporations manage their exchange rate risk, and how they make sound investment and financing decisions factoring exchange rate fluctuations.
|
|---|