Finance 461--International Finance
Fall 2003

Info for the final
Be prepared for an exciting class. So much is hapening in international finance that even I can not make it boring!  (but of course I'll try to!  Just kidding! ;-) )

1. Objective
2. Class Notes
3. Announcements
4. Links- text's web page
5. Final info

Overview
The business world has become increasingly global in nature. Technological improvements, deregulation, and a changing marketplace have created a situation where all firms are involved in international business. As businesses have become multinational, so to has the financial side of businesses. Every day we see international takeovers, billions of dollars being traded in foreign exchange markets, firms issuing securities in multiple nations, investors buying securities around the world, and customers buying from other nations.

This class will endeavor to prepare students to operate in this multinational world. In the face of this globalization, we need to learn how to identify opportunities and risks that are inherent in a global world. Once so identified, we will investigate ways in which these risks can be reduced.
 

Class Notes

Why do business internationally and what it means from a financial perspective

Benefits of free Trade

• Cool links on NAFTA and other things we discussed in class
  

What is NAFTA?

http://www.nafta-sec-alena.org/english/nafta/nafta.htm On the effects of NAFTA on US Economy
http://www.cbo.gov/showdoc.cfm?index=4247&sequence=0
http://www.usembassy-mexico.gov/eataglance1.htm

Agricultural trade with Mexico
http://ffas.usda.gov/info/agexporter/1999/wherethe.html

The impact of NAFTA may be overstated
http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_5593,00.html

Who opposes globalization and why?  
http://www.newsbatch.com/globalization.htm VERY GOOD

World Trade Organization
World Bank
IMF

Good collection of academic articles on international finance

Types of Currency Systems and Organizations and economic crises

While most evidence suggests that in the long run intervetion does not work, there is some evidnce that suyggests as a signalling mechaism it is useful and maybe even effective ....which would help make sense of the growing  body of evidence that suggest currency markets may not be completely wek form efficient. 

Foreign Exchange Notes

Foreign Exchange (chapter 3) Additional Notes on Forex from my  money and banking class  Free converter from Oanda.com to use if you want to make your own practice problems.  I have had several requests for practice problems so here are some: 
Question set 1
Question set 2

    Answers to chpt 4 and 5 suggested problems (word document)

• My notes on international parity conditions
  
• George Washington University has a very good site on international economics and finance that has a chapter on international interest rate parity   
• Examples of the law of one price
  

 

Do you have a site you think should be linked?  Email me: JimMahar@FinanceProfessor.com