BUS-F570 International Financial Markets

• 7 weeks
• 1.5 credits
• Prerequisite(s): BUS-F520 or concurrent enrollment

F570 studies the financial environment that investors and firms confront when undertaking cross-border activities. The critical issue is the risk associated with fluctuating exchange rates. The course focusses on the economics of foreign exchange with particular emphasis on the roles of international investors, international banks, speculators, governments, and central banks.

By the end of the course, students should have a basic understanding of

• the structure, function and use of spot and forward currency markets;
• the structure, function and use of international money markets and how the money markets relate to the forex market;
• the economic factors that influence exchange rates;
• the effect of government policy on exchange rates;
• the role of central banks;
• the risks involved in holding foreign currency denominated investments; and
• the nature of current and potential currency crises.