This is an introductory course, covering a range of financial instruments, interest rate swaps, future contracts in foreign currencies, convertible currency bonds, operation of financial markets, integration and deregulation of global financial markets, the European monetary system, the role of central banks in world economies, globalization and the growth of derivatives, world trade and the currency crises. The balance of international transactions, the current and capital accounts, syndicated credit arrangements for large global projects, interest parity, hedging, and dual-currency bonds will also be covered.
Upon introduction of theory, students will be exposed to practical financial applications, and case studies. Where appropriate, EXCEL-based templates will be used as part of the application component and Canadian corporations with international operations will be used to exemplify theory.
- Introduction to the international financial systems
- WTO rules and regulations and globalization
- globalization and the growth of derivatives
- central banks and the balance of payments
- international financial policies.
- Foreign exchange markets
- the mechanics of currency trading
- settlement dates
- exchange controls
- forwards, swaps, and interest parity
- forward markets, and interest rates
- margin requirements
- futures contracts, and forward contracts
- dual currency markets
- interest parity with bid / asked spreads
- economic functions of futures markets
- foreign currency options
- options on spot exchange
- options on foreign currency futures
- Eurocurrency markets
- eurobanking and eurocurrency centres
- eurocurrency futures and options
- syndicated eurocredits
- implementation of euro
- International bond markets
- new issue procedures
- eurobond valuation and hedging
- caps, floors, and collars
- Forecasting in international financial markets
- The Asian banking systems
- currency crises
- the exchange rate mechanisms
- the IMF interventions
Methods of Instruction
Material will be presented within a lecture format.
Means of Assessment
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
At the end of the course, the successful student should be able to:
- master the basic theories of international finance;
- apply basic theories of finance into case analysis or simulated cases.
ECON 1250 and (FINC 2345 or FINC 2340)
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.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.