国际金融教案.docx

1、国际金融教案经济管理学院教案课 程： 国际金融 教 师： 单 位： 财务管理系 专 业：英语（国际贸易方向）年 级： 2008级 教案格式及要求1、教案以一学期一门课程填写，使用电子课件的课程也需要填写本教案册。2、每章节教案内容应包括：1）教学目的要求；2）本章节的重点、难点及处理方案；3）本章节的教学内容纲要及主要知识点；4）教学手段、方法设计（可选）5）思考题、作业题；6）参考书目或资料简介。3、教案可手工填写，也可用电子文档填写。使用电子文档的教师，需打印并在课程讲授结束后装订成册。4、若一册教案不够填写，可续。5、本系所开各门课程的教案必须统一格式。注：表中（ ）选项请打“”授课题目

2、名称（教学章、节或主题）：Course Overview and Lecture 1: Introduction授课方式（请打）理论课 讨论课 实验课 习题课 其他周 次第（1）周课时安排（ 4）学时教学目的及要求（分掌握、熟悉、了解三个层次）：This course is about financial management of Multinational Enterprises (MNEs). It will aim to provide you with insights into the issues a financial manager needs to be aware of

3、in order to remain competitive in a global environment .In the first part of the course we will study the macroeconomic aspects of financial management and in the second part we will focus on micro (firm level) decisions.教学重点、难点、关键知识点及采用的措施：Because international business operations is very different

4、 under a fixed system of exchange rates with stringent capital controls and market segmentation than under a system of flexible exchange rates with free capital movement and market integration we will study the following:1.International monetary system2.Some economic theories of exchange rate and in

5、terest rate determination3.International financial markets4.Foreign Exchange (FX) risks and exposures5.International Finance and InvestmentsCommon Theme: Globalisation Process whereby structural and managerial changes are experienced by a firm as it moves from domestic to global operations.Key Issue

6、: Given the macroeconomic & micro environment of thepresent time, how do firms operate with respect to their financial operations.教学方法及手段设计：网络教学 多媒体辅助教学 板书 教具 其它（请打）教学基本内容（纲要及主要知识点）备注教学内容：Main Costs and Benefits of Globalisation:Benefits: 1.Larger market for firms products2.Financing and Investment

7、opportunities from abroadCosts:1.Foreign Competition2.FX Risk: uncertainty about future FX rates that affects sales, prices and profits)3.Country Risk: economic, political and social factors that may have adverse effects on sales, prices and profits.此页可加续页教学基本内容（纲要及主要知识点）备注Objectives: To identify re

8、cent developments in the international financial environment that have facilitated Globalisation and to emphasize their impact on firms financial.operations:1.arbitrage2.financing3.investment4.hedging5.speculationInternational financial environment has undergone substantial changes sinceWW2:WW2 1970

9、s: business firms had little incentives and ability to engage in international financing and investment: 1.Fixed exchange rates2.Stringent capital controls3.Segmentation of capital marketsAugust 1971: collapse of the Bretton Woods System of fixed exchange rates (US announced that it would no longer

10、convert USD into Gold).Since then:1.major currencies have been floated2.larger interest rates and exchange rate volatility3.abolition of capital controls - still continues4.financial deregulation - still continuesThese changes are important as they represent new opportunities as well as risks, e.g.:

11、1.set up operations overseas: new larger markets, increases customer base2.obtain foreign financing and invest in foreign companies: cheaper funds and portfolio diversification3.foreign legal environment: costs associated with training legal stuff + obtaining local representation4.even if a firm wer

12、e not involved in international trade: 1)increased competition from foreign competitors and imports2)synchronisation of monetary policies across countries, e.g. US and AU interest rates教学基本内容（纲要及主要知识点）备注3)financial contagion: financial crises affect investor confidence and spread across regions, aff

13、ecting both firm and individual wealth, which affects consumption, which affects investment which affects domestic economy.Globalisation of finance is driven by:1.advances in information technology2.synchronisation of national economic policies3.relaxation of capital controls 4.financial deregulatio

14、npetition6.International trade (e.g. China, India)Indicators of Globalization:1.volume of international bank lending1)cross-border lending2)domestic lending in foreign currency2.value of financial securities transactions with foreigners.3.flows of portfolio investment and foreign direct investment4.

15、value of daily turnover in the global FX market5.extent of interdependence between international financial markets1)e.g. equities, bonds, etc.Eurodollar MarketCurrency ConvertibilityEuropean UnionChanges in Relative Economic SizeDeterioration of the US external positionOil PricesInternational Debt P

16、roblemInternational use of non-dollar currenciesIncreased Capital MobilityMarket Integration, Financial Deregulation and GlobalisationRegional CooperationIncreased Volatility of Financial MarketsFinancial Crises and ContagionSecuritization and Financial InnovationEurodollar market:1.Market for asset

17、s/liabilities denominated in currencies other than those of country in which they are held. E.g. having a USD deposit with an Australian bank in Sydney.教学基本内容（纲要及主要知识点）备注2.Origins of the Market: The market began in the late 1950s and has grown since primarily as a means to circumvent domestic financ

18、ial regulations and exploit arbitrage opportunities in international money markets.3.Implications: Its relevance for firms is as a source of international borrowing and short-term investment, e.g. firm obtains direct loan from Eurobank or makes a Eurocurrency time deposit in home country where its c

19、redit rating is higher - cheaper financing rate.Currency Convertibility 1.Refers to the ability to exchange one currency for another (either at a fixed or a flexible exchange rate). 2.European currencies became convertible again after WWII in the late 1950s, Japanese Yen in early 1960s.3.Implication

20、s: Obvious relevance for business operations since currency inconvertibility impedes trade and international financing and investment. European Economic Community (EEC) and the European Union (EU)1.25 countries 2.EU is a preferential trade agreement1)a customs union that allows free trade among memb

21、ers with common tariff imposed on non-members.2)common currency Euro, since 2002, for 12 country members of European Monetary Union, EMU 3)common Agricultural policy4)et cetera3.Implications: 1)For business firms with domestic EU base, main gains are in terms of increased markets and investment. Ado

22、ption of common currency by EMU members has benefits to firms (elimination of transactions costs of multiple EU currencies) but euro member firms are still exposed to exchange rate risk if deal in either Eurodollar market or non-euro trade) for which need to develop appropriate risk management tools

23、. 2)Domestically based firms in euro area face changed macroeconomic environment with constraint of common monetary policy. Greater risk of macro instability in event of non-synchronised shocks and inflexible labour markets able to absorb shocks.Trend towards convergence of economic size of main ind

24、ustrial economies1.measured by share or world GDP, main changes: China and EU教学基本内容（纲要及主要知识点）备注Note: The trend towards symmetry in economic size is not reflected in financial importance, i.e. USD still dominates global financial transactions. At the end of 2004: 1.66% of the identified official fore

25、ign exchange reserves in the world were held in USD 2.25% in Euros Persistent US current account deficit (i.e. exports imports)1.since late 1970s US current a/c deficit, see fig. 1.22.issue is not the persistence of the US current a/c deficit (averaged about 3% of US GDP) since the early 1980s but a

26、 recent increase to 5% of GDPImplications:1.US current a/c deficit present added risk in the international environment, given the importance of the US economy and US dollar.2.US current a/c deficit is financed by lending by overseas countries and firms. Risk for business firms is “hard landing” (sha

27、rp 教学基本内容（纲要及主要知识点）备注3.BOP difficulties affect interest rates and exchange rates and the economic performance of countries since they are often viewed as a constraint on economics policyFluctuations in Oil Prices (especially recent rises)1.changes in oil prices affect:1)overall economic activity2)fi

28、nancial markets2.a rise in oil prices is a negative supply shock for oil importer, pushing up level of prices. Whether a rise in oil prices translates into inflation (percentage change in prices) depends on monetary policy response, thus has a macroeconomic effect, but also a micro effects since it

29、increases costs of transportation and prices of intermediate inputs.Implications1.involves strategic decisions as to whether to absorb increase in oil price in lower profit margins (to maintain market) or pass on through higher prices.2.higher oil prices affect market confidence, being perceived by

30、business (in oil importing countries) as adverse to economic growth and consumer/investor confidence (threat of inflation as noted above).International Debt Problem1.build-up of external debt by developing countries, started in 1982 when Mexico defaulted on its debt.2.an issue for Latin America in 1

31、980s and presently for low-income developing countries, see fig. 1.43.external borrowing by a country or firm and subsequent external debt is not in itself a problem: issue is whether can generate sufficient income to repay and remain solvent.Implications1.possible that high levels of debt may affect negatively domestic investment (so called debt overhand) and economic growth.2.issue for international business firms is in assessment of country and borrower risk (creditor role), given absence of an international enforcement mechanism.3.e.g. the 1980s financial crisi