International Finance

► 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