ECO685 - INTERNATIONAL FINANCE
| Course Name | Code | Semester | Theory (hours/week) |
Application (hours/week) |
Credit | ECTS |
|---|---|---|---|---|---|---|
| INTERNATIONAL FINANCE | ECO685 | Any Semester/Year | 3 | 0 | 3 | 7 |
| Prequisites | None | |||||
| Course language | Turkish | |||||
| Course type | Elective | |||||
| Mode of Delivery | Face-to-Face | |||||
| Learning and teaching strategies | Lecture Discussion | |||||
| Instructor (s) | Academic Staff | |||||
| Course objective | This course focuses on the theoretical and empirical issues in international finance literature. Especially the objective is to introduce students to various theoretical models of exchange rate determination, the balance of payments, international parity conditions, financial crisis as well as empirical work on these issues. | |||||
| Learning outcomes |
| |||||
| Course Content | Exchange rate markets (Spot, Arbitrage, Forward, Swap, Eurodollar Market, Futures and Options); Global Exchange rate systems: (Bretton Woods before and after: Fixed, Flexible, Managed, Currency board, Dolarization); Balance of Payment Account; Purchasing Power Parity; Interest rate parity; Efficient Market Hypothesis; International capital mobility; Exchange rate determination; Trade Flow Approach; Asset Market Approaches; Monetarist Approach; Total Expenditure Approach; Currency Substitution; Role of News; Overshooting; Empirical Evaluation of Exchange rate models, Currency Substitution, Financial Crises. | |||||
| References | Journal Articles (Reading List will be posted) Pilbeam, Keith, 2006, International Finance, 3rd. :Hampshire: Palgrave McMillan. HG3881.P637 2006 Copeland, Laurence, 2008, Exchange Rates and International Finance, 5th ed., Harlow: FT Prentice Hall. Hallwood, C. P. and R. MacDonald, 2000, International Money and Finance, 3rd. ed., Malden: Blackwell Publishing. | |||||
Course outline weekly
| Weeks | Topics |
|---|---|
| Week 1 | An introduction to international finance with recent figures |
| Week 2 | Spot, Forward, Futures and Options Currency Markets |
| Week 3 | Exchange rate regimes; World Payment Systems |
| Week 4 | Balance of Payment; Current account deficit |
| Week 5 | Purchasing Power Pairty; Balassa-Samuelson Hypothesis |
| Week 6 | Interest rate parity |
| Week 7 | Unbiased Forward rate hypothesis; Efficient Market |
| Week 8 | International Capital Mobility: Market integration/segmentation |
| Week 9 | Feldstein-Horioka Puzzle |
| Week 10 | Midterm |
| Week 11 | Determinants of Exchange Rate (Flow Approach) |
| Week 12 | Potrfolio Balance and Asset price Approaches |
| Week 13 | Monetarist Approach; Overshooting |
| Week 14 | Financial Crises; Capital Flight |
| Week 15 | Term paper presentations |
| Week 16 | Final Exam |
Assesment methods
| Course activities | Number | Percentage |
|---|---|---|
| Attendance | 0 | 0 |
| Laboratory | 0 | 0 |
| Application | 0 | 0 |
| Field activities | 0 | 0 |
| Specific practical training | 0 | 0 |
| Assignments | 0 | 0 |
| Presentation | 1 | 10 |
| Project | 1 | 20 |
| Seminar | 0 | 0 |
| Midterms | 1 | 30 |
| Final exam | 1 | 40 |
| Total | 100 | |
| Percentage of semester activities contributing grade succes | 3 | 60 |
| Percentage of final exam contributing grade succes | 1 | 40 |
| Total | 100 | |
WORKLOAD AND ECTS CALCULATION
| Activities | Number | Duration (hour) | Total Work Load |
|---|---|---|---|
| Course Duration (x14) | 14 | 3 | 42 |
| Laboratory | 0 | 0 | 0 |
| Application | 0 | 0 | 0 |
| Specific practical training | 0 | 0 | 0 |
| Field activities | 0 | 0 | 0 |
| Study Hours Out of Class (Preliminary work, reinforcement, ect) | 10 | 6 | 60 |
| Presentation / Seminar Preparation | 1 | 16 | 16 |
| Project | 1 | 46 | 46 |
| Homework assignment | 0 | 0 | 0 |
| Midterms (Study duration) | 1 | 20 | 20 |
| Final Exam (Study duration) | 1 | 26 | 26 |
| Total Workload | 28 | 117 | 210 |
Matrix Of The Course Learning Outcomes Versus Program Outcomes
| D.9. Key Learning Outcomes | Contrubition level* | ||||
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| 1. To understand theoretical developments in financial economics. | X | ||||
| 2. To have a good grasp in methods and techniques to use and test theoretical approaches in the field. | X | ||||
| 3. To understand the interdisciplinary nature of financial economics. | X | ||||
| 4. To know the applications in the field of financial economics and propose appropriate solutions to practical problems. | X | ||||
| 5. To offer appropriate policy suggestions in response to new financial developments. | X | ||||
| 6. To understand and explain the effects of international financial developments on national economy and the interdependencies between the two. | X | ||||
| 7. To comprehend pricing and diversification of financial assets and risk management. | X | ||||
| 8. To understand country risk and rating analysis and evaluate their effects on national economy. | X | ||||
| 9. To know theoretical and empirical concepts in financial economics to follow the related literature. | X | ||||
| 10. To access and evaluate financial data and interpret them. | X | ||||
| 11. To conduct independent empirical studies in financial economics by using software. | X | ||||
| 12. To understand different market structures in which financial firms operate and their impacts on firm behavior. | X | ||||
| 13. To suggest policies for financial markets depending on their significance and distinctive features. | X | ||||
| 14. To develop the capacity to construct unique ideas in their research without ethical breaches such as plagiarism, forgery and distortion. | X | ||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest