Dr. Noureen Adnan Academic PhD (Financial Economics), University of Surrey, UK MSc (Financial Economics) Cardiff Business School, UK MBA (Finance) University Institute of Management Sciences, Pakistan GTA (Graduate Teaching Certificate) London School of Economics.
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Dr. Noureen Adnan Academic PhD (Financial Economics), University of Surrey, UK MSc (Financial Economics) Cardiff Business School, UK MBA (Finance) University.
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Dr. Noureen AdnanAcademic
PhD (Financial Economics), University of Surrey, UK
MSc (Financial Economics) Cardiff Business School, UK
MBA (Finance) University Institute of Management Sciences, Pakistan
GTA (Graduate Teaching Certificate) London School of Economics.
Lecture 1
International Finance
Topics
• International Financial Management
• International Flow of Funds and BoP
• International Financial Markets
• Foreign Exchange Rate and Types
• Government Intervention in Exchange Rates
Topics
• Inflation, Exchange and Interest Rate
• Risk Management of Exchange Rates
• Managing Economic, Transaction & Translation
Exposure
• Direct Foreign Investment
MULTINATIONAL COMPANIES
• Goals of MNCs
• Agency Problems
• Centralized vs. Decentralized System
• Theories of International Business
Common methods to conduct international business– International trade, – Licensing, – Franchising, – Joint ventures, – Acquisitions of existing operations, – Establishing new foreign subsidiaries
Investment opportunities Financing opportunities Marginal Returns and Marginal Costs
• Capital Account (Flow of funds; one country to
other)
– Direct Foreign Investment
– Portfolio Investment
– Capital Investment
• Trade volume is different
• Over all the World is developing
• Trade Agreements
– NAFTA, GATT, EU
• Trade Disagreements
– Tariffs, Quotas, Job loss
– Rules are different (Child labor, Bribe, etc)
– Outsourcing
• Economic Factors Affecting Trade
– Inflation
– Impact of National Income
– Government Restrictions
– Foreign Exchange Rates
• International Capital Flows
• Factors Affecting International Trade flows
• Factors affecting DFI
• Factors Affecting Portfolio Investment
• Agencies that Facilitate International Trade
Motives to use International Market
• Economic Conditions
• Exchange Rate
• International Diversification
Foreign exchange Market
Gold Standard
Fixed Exchange Rate
Floating Exchange Rate
• Spot Market• Bid/Ask Spread• Direct & Indirect Quote• Future Market • Forward Market • Attributes of Banks• Options– Put option – Call Option
• Domestic Money Market
• Domestic & International Money Market• Standardization of Banking Regulations• Single European Act