ULMS Electronic Module Catalogue |
| The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module. |
| Title | International Finance | ||
| Code | ACFI814 | ||
| Coordinator |
Dr S Ahmed Finance and Accounting Shamim.Ahmed@liverpool.ac.uk |
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| Year | CATS Level | Semester | CATS Value |
| Session 2024-25 | Level 7 FHEQ | Second Semester | 15 |
Pre-requisites before taking this module (other modules and/or general educational/academic requirements): |
Modules for which this module is a pre-requisite: |
Programme(s) (including Year of Study) to which this module is available on a required basis: |
Programme(s) (including Year of Study) to which this module is available on an optional basis: |
Teaching Schedule |
| Lectures | Seminars | Tutorials | Lab Practicals | Fieldwork Placement | Other | TOTAL | |
| Study Hours |
20 |
5 |
25 | ||||
| Timetable (if known) | |||||||
| Private Study | 125 | ||||||
| TOTAL HOURS | 150 | ||||||
Assessment |
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| EXAM | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
| Examination. There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. | 2 | 70 | ||||
| CONTINUOUS | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
| Individual assignment. There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. | 0 | 30 | ||||
Aims |
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The aim of this module is to provide students with an understanding of international arbitrage relationships, models of exchange rate determination, and recent issues in international finance literature. By the end of this module, students should be able to describe the basic international parity relationships, outline some of the basic models of exchange rate determination, and have a good grasp of current issues in international financial markets, and be able to critically evaluate the empirical literature on international finance. Students should also be able to analyse risks that exist in international finance including foreign exchange, foreign trade and investment risks and to select and use appropriate techniques to manage such risks. |
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Learning Outcomes |
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(LO1) Students will be able to evaluate markets - the development and operation of markets for resources, goods and services. |
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(LO2) Students will be able to examine international issues in business and management. |
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(LO3) Students will be able to examine the sources, uses and management of finance; the use of accounting and other information systems for managerial applications. |
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(LO4) Students will be able to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately. |
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(LO5) Students will be able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions. |
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(S1) Problem solving skills |
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(S2) International awareness |
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(S3) Organisation skills |
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(S4) Commercial Awareness |
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Teaching and Learning Strategies |
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2 hour lecture x 10 weeks |
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Syllabus |
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1. Exchange Rates and Foreign Exchange (FX) Markets Levich, Chapters 2 and 3 Bank for International Settlements (2013), Triennial Central Bank Survey of Foreign Exchange and Derivative Market Activity. 2. FX Market Efficiency Levich, Chapter 5 Akram, Q. F., Dagfinn Rime, and Lucio Sarno (2008), Arbitrage in the Foreign Exchange Market: Turning on the Microscope, Journal of International Economics 76, 237-253. 3. Real Exchange Rate and Purchasing Power Parity Levich, Chapter 4 Taylor, Alan M. and Mark P. Taylor (2004), The Purchasing Power Parity Debate, Journal of Economic Perspectives 18, 135-158. 4. Exchange Rate Determination Sarno and Taylor, Chapter 4 Meese, Richard A. (1990), Currency Fluctuations in the Post-Bretton Woods Era, Journal of Economic Perspe ctives 4, 117-134. 5. Exchange Rate Forecasting Eun and Resnick, Chapter 6 Meese, Richard A. and Kenneth Rogoff (1983), Empirical Exchange Rate Models of the Seventies: Do They Fit Out of Sample?, Journal of International Economics 14, 3-24. Burnside, Craig, Martin Eichenbaum, and Sergio Rebelo (2007), The Returns to Currency Speculation in Emerging Markets, American Economic Review 97, 333-338. Brunnermeier, Markus K., Stefan Nagel, and Lasse H. Pedersen (2009), Carry Trades and Currency Crashes, NBER Macroeconomic Annual 2008, 313-347. Melvin, Michael and Mark P. Taylor (2009), The Crisis in the Foreign Exchange Market, Journal of International Money and Finance 28, 1317-1330. Mark, Nelson C. (1995), Exchange Rates and Fundamentals: Evidence on Long-Horizon Predictability, American Economic Review 85, 201-218. 6. FX Predictability: Statistical Significance and Economic Value Della Corte, Pasquale and Ilias Tsiakas (2012), Statis tical and Economic Methods for Evaluating Exchange Rate Predictability, Handbook of Exchange Rates, Wiley. Della Corte, Pasquale, Lucio Sarno, and Ilias Tsiakas (2008), Can We Predict Exchange Rates? Economic Evidence Against the Random Walk, 7. FX Volatility Strategies Della Corte, Pasquale, Lucio Sarno, and Ilias Tsiakas (2011), Spot and Forward Volatility in Foreign Exchange, Journal of Financial Economics 100, 496-513. |
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Recommended Texts |
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| Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module. | |