İŞL364

School of Economics and Administrative Sciences \ Business Administration

3

6

Compulsory

English

-

Management

This course aims to teach the basic concepts of international economics and finance. Basic topics such as open-economy macroeconomic models, international trade, foreign exchange markets, exchange rate policies and principles of international finance are covered. In addition, international financial instruments such as forward markets and exchange rate systems are analysed to provide information on the functioning of global financial markets. Within the scope of the course, students are expected to understand the decision-making processes in international financial markets and to make strategic financial evaluations related to the global economy.

1. International Economics and Finance, Robert J. Carbaugh, South-Western.
2. Presentations.

To teach the basic concepts of international economics and open economy macroeconomic models,
To understand the functioning of international trade and economic dynamics in global markets,
To teach the structure and functioning of foreign exchange markets and exchange rate determination mechanisms,
To gain the ability to analyse the effects of exchange rate policies on the economy,
To introduce the basic principles of international finance and investment instruments in global financial markets,
To provide information about forward markets and foreign exchange derivative products (options, futures),
To gain the ability to analyse the management of exchange rate risk and its effects on the balance sheet structures of international firms,
To enable students to comprehend investment decisions and risk management strategies in international financial markets,
To gain the ability to follow and interpret current developments in the global economy,
To be able to make strategic evaluations by analysing the financial performance of international businesses.

1. Compare international exchange rate systems and analyse their strengths and weaknesses.
2. Recognise foreign exchange markets and explain foreign exchange derivatives (options, futures).
3. Explain how exchange rates are formed, which factors affect them and how they move.
4. Evaluate the basic strategies and practices related to the management of exchange rate risk.
5. Analyse and evaluate the financial performance of international firms.
6. Adapt financial theories, practices and strategies used in business to international firms.
7. Apply arbitrage, investment and risk management strategies related to foreign currency markets.
8. Follow current developments in the global economy and interpret the effects of economic policies on international finance.
9. Analyse international trade and financial markets using open-economy macroeconomic models.

Week 1: Introduction
Week 2: Modern Trade Theory, Comparative Advantage, Tariffs
Week 3: International Monetary System, Exchange Rate Systems
Week 4: Balance of Payments
Week 5: Trade Policies for Developing Countries
Week 6: Foreign Exchange Market
Week 7: Midterm Exam
Week 8: Exchange Rate Determination Mechanism
Week 9: International Parity Conditions
Week 10: Macroeconomic Policy in Open-Economy
Week 11: International Banking: Reserves, Debt, Risk
Week 12: General Review

• Midterm 35 %
• Final 50 %
• Participation 15 %