导论国际金融概览.ppt

,The Overview of International Finance Course,2011.9.6,How much do you know about international finance?,Theories of international finance,Foreign Exchange Transactions,International Financial Markets,International currencies,What is International finance?,The Overview,Step 1,Step 2,Step 3,1. What is International finance?,2. Why we study international finance ?,3. Introduction of International Finance course,1. What is International finance?,International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, global financial system, and how these affect international trade. It also studies international projects, international investments and capital flows, and trade deficits. It includes the study of futures, options and currency swaps. International finance is a branch of international economics.,Theories of international finance,Important theories in international finance include the Mundell-Fleming model, the optimum currency area (OCA) theory, as well as the purchasing power parity (PPP) theory. Whereas international trade theory makes use of mostly microeconomic methods and theories, international finance theory makes use of predominantly macroeconomic methods and concepts.,2.Why we study international finance?,Globalization is rapidly emerging. Emergence of worldwide financial markets and better access to external financing for borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment. Realization of a global common market, based on the freedom of exchange of goods and capital.,Multinational corporation,A multinational corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. Some multinational corporations are very big, with budgets that exceed some nations GDPs. Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in international relations and globalization.,Multinational corporation,MNCs organize this operation in different countries through any of the following five alternatives: 1. Branches 2. Subsidiaries 3. joint venture company 4. Franchise holders 5. turn-key projects,Chinas rapid economic development,China since 2010 ranks as the worlds second largest economy after the United States. It is one of the worlds fastest-growing major economies, with consistent growth rates of 5% - 15% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. China became the worlds top manufacturer in 2011, surpassing the United States .,3. Introduction of our courses,International Finance is a basic course of Finance, International Trade and International Business. This course refers to the basic knowledge and principles of international finance, including foreign currency and exchange rate, exchange rate determination, balance of payments, international reserve, currency crisis theory, the theory of optimum currency areas etc.,The Overview of International Finance,International finance,It is a basic course of Finance, International Trade and International Business.,International capital movements,Interest Rate Parity,Foreign currency,Exchange rate,laying the foundation for later courses.,The relations with International economics,International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration.,The main branch of international economics,International trade,International monetary economics,International finance,International trade studies goods-and-services flows across international boundaries from supply-and-demand factors, economic integration, international factor movements, and policy variables such as tariff rates and trade quotas.,International finance studies the flow of capital across international financial markets, and the effects of these movements on exchange rates.,International monetary economics and macroeconomics studies money and macro flows across countries.,Research focus,RMB internationalization Chinas foreign exchange reserves policy The reform of international financial institutions International financial regulation Balance of payments,Our Objectives and Targets, Objectives Students will have a comprehensive, systematic understanding of the basic knowledge and principles of international finance, laying the foundation for later courses. Targets Understand the basic knowledge of international finance Master the basic principles of international finance Be familiar with the operations of international finance,Chapter 5: International currencies,Curriculum Arrangements (1),Chapter 1: Theories of international payments,Chapter 2: Basic knowledge of foreign exchange and exchange rate,Chapter 3: Purchasing power parity theory,Chapter 4: Interest Rate Parity Theory,Chapter 10: Short-term international capital movements & Hot Money,Curriculum Arrangements(2),Chapter 6: International Reserve,Chapter 7: International monetary system & Exchange rate system,Chapter 8: Monetary Crisis Theory,Chapter 9: Theories of Optimum Currency Areas,Chapter 15: How does the open macroeconomy work,Curriculum Arrangements (3),Chapter 11: Long-term international capital movements & FDI,Chapter 12: Foreign Exchange