Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ECO406
Module Title: International Finance and Economics
Module Level: Level 4
Module Credits: 5.00
Academic Year: 2020/21
Semester: SEM2
Originating Department: International Business School Suzhou
Pre-requisites: N/A
   
Aims
This module explains to students the theories of exchange rate determination, balance-of-payment adjustments, macroeconomic policy in an open economy, issues of cross-border portfolio and direct investments, international debt/currency crisis and contagion, and the management of currency risks. Thus, the module will enable students to analyze the effects of macroeconomic policies on key variables of importance to cross-border investments. It also teaches students how to discern, estimate, and manage risks for an international firm.
Learning outcomes 
A) Demonstrate knowledge of the foreign exchange market and exchange rate determination

B) Demonstrate understanding of the role of macroeconomic policy in an open economy

C) Explain the causes of debt/currency crisis and international financial contagion

D) Analyze balance-of-payments adjustments in the short run and the long run

E) Analyze the determinants of international portfolio and direct investment flows

F) Analyze the financing and risk management of multinational enterprises

Method of teaching and learning 
The module is delivered through a combination of lectures and tutorials. Students are expected to devote at least 8 to 9 hours of private study time per week for studying this module
Syllabus 
• The Foreign Exchange Market and Interest Rate Parities

• The Balance Of Payments And National Income Accounting

• Elasticity and Absorption Approaches to the Balance of Payments

• Macroeconomic Policy in an Open Economy: the Mundell-Fleming Model

• Purchasing Power Parity and the Balassa-Samuelson Model

• The Flexible-Price vs Sticky-Price Monetary Model of Exchange Rate Determination

• The Portfolio Balance Model of Exchange Rate Determination

• International debt/currency crises and contagion

• The International Financial System: Past, Present, and Future

• Currency Derivatives

• Cross-Border Portfolio Investment

• The Growth of and Concerns about Multinationals

• Managing Foreign Exchange Exposure and Risk

Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 26  6        118  150 

Assessment

Sequence Method % of Final Mark
1 Essay 20.00
2 Group Assignments 10.00
3 Final Exam 70.00

Module Catalogue generated from SITS CUT-OFF: 8/16/2020 3:53:55 AM