GLOBAL FINANCE

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN324978
Module Leader Sanjukta Brahma
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • B (January start)
  • A (September start)
  • C (May start)

Summary of Content

The module aims to develop a critical awareness and understanding of finance in a global context. This module has both theoretical and applied elements as it endeavours to please the existing theories into the modern problems of global finance faced today. The module will be delivered in three parts, each building on the other, and together meeting the Learning Objectives of the Module. The first part of the module introduces some basic ideas and terminology of international finance, as well as, outlines international financial system and its main institutions. It then proceeds to analyse various theories of exchange rate determination, their application in empirical research and risks present in foreign exchange markets. The last part of the module deals with a number of international financial markets with respect to the range of services and securities offered by those markets.

Syllabus

1. Foundations of international finance The international monetary system post World War 2 The market for foreign exchange Balance of payments 2. Exchange rate determination and risk in the foreign exchange market The law of one price & purchasing power parity International parity relationships and forecasting foreign exchange rates Speculation and risk in foreign exchange market 3. Modern world financial markets and institutions International banking and money market International bond market International equity markets Offshore financial centers & tax heavens

Learning Outcomes

On successful completion of this module, the student should be able to:1. Understand and evaluate a practical application of various exchange rate determination models. 2. Critically review and discuss relevant academic publications.3. Understand and take an active part in the main debates on international financial issues presented in the financial press/media (critical thinking).4. Critically discuss the contemporary international monetary system and its main players and be able to discuss the main problems and opportunities that the international monetary system is facing.5. Apply their knowledge of global finance to work out the solutions to real-world problems in the modern international financial markets.6. Possess a theoretical and empirical understanding of the main debates and problems present in international monetary system, exchange rate determination and international financial markets.

Teaching / Learning Strategy

For students other than distance learning students, contact will normally be two hours of lectures and one hour of seminar each week. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students will be then expected to prepare for following week 's seminar on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and, where necessary, computational questions. In some cases, students will be asked to prepare work in advance of the lecture to facilitate a more interactive approach to the lecture, providing the basis for deepening professional skills, knowledge and understanding. Seminars will be conducted in workshop format providing the opportunity for student led and group task learning, with the aim of enhancing to enhance intellectual, critical and analytical skills, as well as common good attributes of leadership and responsibility. In the case of Distance Learning students, course materials will include interactive prompts and opportunities for reflection to allow the students to identify and engage with important learning points and issues arising in the course material. Module tutors will also make use of podcasts to emphasise important issues and learning points, or explain problematic issues that arise either face-to-face or online, to all students. Extensive will be made of VLE to enhance the learning experience and engagement of all students on the module. One purpose of the VLE is as a repository for resources including key readings such as scanned material, journal articles, book chapters, digital book chapters, web-links, and embedded video clips. It is also a site of interactivity between all students, using the Discussion Board, blogs (including as part of the assessment) and online student groups to encourage discussion, analysis and reflection on the course content, as well as interpersonal and communication skills.

Indicative Reading

-567 Essential: -567 Pilbeam, K. (2013). International Finance (4th Ed.), Palgrave Macmillan Recommended: Eun, C., and B. G. Resnick. (2017). International Financial Management(8th Ed.), McGraw Hill Copeland, L. (2014). Exchange Rates and International Finance (6th Ed.), Pearson Along with those two textbooks, key academic articles and up-to-date articles from financial press will also be used. You are also advised to keep up-to-date with what is happening in the area of international finance and the foreign exchange markets. -567 Online sources: Bank of England: www.bankofengland.co.uk <http://www.bankofengland.co.uk> Bank for International Settlement: www.bis.org <http://www.bis.org> European Central Bank: www.ecb.int <http://www.ecb.int> Financial Conduct Authority (FCA): www.fca.org.uk <http://www.fca.org.uk> International Financial Risk Institute: www.risk.ifci.ch <http://www.risk.ifci.ch> International Monetary Fund: www.imf.org <http://www.imf.org> International Organisation of Securities Commission: www.iosco.org <http://www.iosco.org> The World Bank: www.worldbank.org <http://www.worldbank.org> VOX CEPR's Policy Portal: <http://voxeu.org/> World Federation of Exchanges: <https://www.world-exchanges.org/home/> -567 Please Note: The reading list at the beginning of each set of lecture notes is a starting point and is not meant as an exhaustive list. To expand your knowledge and understanding of a topic, follow the relevant articles and authors quoted or referenced in the articles you have read. -567 Other sources: Academic Journals: European Journal of Finance IMF Economic Review International Review of Finance Journal of Financial Markets Journal of International Business Studies Journal of International Economics Journal of International Financial Markets, Institutions and Money Journal of International Money and Finance World Bank Economic Review

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: 1. Tackling and solving analytical and numerical problems; 2. Ability to express and understand spoken and written communication in English at an advanced level in the international business environment; 3. The ability to work independently and as a part of the team; 4. Relating concepts and knowledge from different areas; 5. Making decisions in complex and changing environments using quantitative criteria and qualitative insights; 6. Applying acquired knowledge and skills; 7. Ability to exploit new information sources

Module Structure

Activity Total Hours
Seminars (FT) 12.00
Independent Learning (FT) 84.00
Assessment (FT) 30.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Portfolio n/a 60.00 45% Portoflio - range of individual written tasks 2500 words
Report n/a 40.00 45% Policy memorandum 1750 words.