Foreign Exchange Management
This course is not active. Please contact Department Chair for more information.
- Foreign Exchange Risk Management
. Measuring foreign exchange (FX) risk and exposure for small business operators
. Managing FX risk
. Foreign currency risk and its impact on internal operations
- Foreign Exchange Market
. Organization, mechanism of Foreign Exchange Market
. The Spot Market
. The Forward Market
- Measuring Exchange Risk in Foreign Settlements
. Operational and financial tools for measuring, containing, and settling of FX transactions
. Equity investing and participation
. Optimal international asset allocation, and product pricing strategies
- International Banking, Settlement Trends and Strategies
. Banking activities, settlement and payment vehicles and procedures
. Euromarket international banking activities
- Designing an Optimal, Risk-Free (FX) Global Financial Strategies
. Minimizing expected after-tax FX costs
. Reducing operational FX risks
. Country risk financial analysis and predictive models
. FX risk preventive strategies
Lectures, seminars, case studies.
Class participation 10%
Presentation of case 15%
In-class quizzes 15%
Cases (5-10) 30%
Final examination 30%
The student will be able to:
1. identify foreign exchange risk management and the techniques available to small business operators for risk exposure containment;
2. analyze alternative currency translation methods for settlement of goods;
3. examine the organization of the Foreign Exchange Market, the Spot Market, and the Forward Market, and how the information driven in these markets can be used by small business operators in controlling and managing foreign exchange;
4. be able to identify operational difficulties in financing, and settling in foreign currency, and currency forecasting;
5. evaluate the intercompany funds-flow mechanisms, cost and benefits, pertaining to all foreign sales and settlements;
6. explain foreign exchange units in financial intermediaries;
7. describe operational benefits of Electronic Data Interchange (EDI), Letters of Credit (LC) and other exchange mechanisms, in settling foreign accounts.
Textbooks and Materials to be Purchased by Students
Mishkin, Frederic S. Financial Markets, Institutions, and Money, Latest Ed. South-Western Publishing.
Jain, Arvind K. International Financial Markets and Institutions, Latest Ed. Miami: KolbPublishing.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.
These are for current course guidelines only. For a full list of archived courses please see https://www.bctransferguide.ca
|Institution||Transfer Details for FINC 4405|
|There are no applicable transfer credits for this course.|