International Economics and Finance

Course Description:

This course analyzes the nature and effects of financial arrangements on capitalist economies operating in an international context. It deals primarily with international financial arrangements. More specifically, International Finance studies the effects of domestic and international banking, finance, foreign direct investment and macroeconomic policy and institutions on capital accumulation, unemployment, inflation, income distribution and class conflict in capitalist economies including the rich, poor and semi-industrialized countries. The course will also survey some relevant economic theories which have tried to understand the operation and implications of these international arrangements. Topics to be discussed will include foreign exchange markets, international financial markets, international banking, currency derivative markets, euro-markets, risk management, and investment decisions in the global marketplace.

Course Learning Outcomes:

Upon successful completion of this course, students will be able to:

• Compare alternative theories of international trade
• Analyze and test international trade models
• Evaluate the impact of tariffs and non-tariff barriers
• Identify the validity and efficiency of protectionist policies • Estimate the impact of preferential trade arrangements
• Read and analyze the nation’s balance of payment
• Understand how a foreign exchange market operates
• Predict movements in the value of the U.S. dollar and other currencies in response to changes in the world economy and macroeconomic policies
• Compare the exchange rate regimes and international monetary standards
• Analyze international investment, banking, debt, and risk
• Explain financial crises in emerging economies, their causes and solutions