A study of economics in the international context of foreign exchange and currency markets and their impact on international economics. The interrelationship of exchange rates and economics factors are also discussed.
- Examine the concept of the current account balance.
- Employ the current account balance to extend national income accounting to open economies.
- Apply national income accounting to the interaction of saving, investment, and net exports.
- Evaluate and discuss the national money markets in which interest rates are determined.
- Compare how monetary policy and interest rates feed into the foreign exchange market.
- Discuss the concept of the real exchange rate.
- Analyze the factors that affect real exchange rates and relative currency prices in the long run.
- Explain the role of the real exchange rate in determining the aggregate demand for a country’s output.
- Demonstrate causes and effects of balance of payments crises.
- Evaluate how alternative multilateral systems for pegging exchange rates work.
- Explain how the goals of internal and external balance motivate economic policy makers in open economies.
- Summarize how the monetary and fiscal policies of a large country such as the United States are transmitted abroad.
- Analyze the economic function of international portfolio diversification.
- Explain factors leading to the explosive recent growth of international financial markets.
- Analyze problems in the regulation and supervision of international banks and nonbank financial institutions.
- MBA 6081
International financial management (Rev: 2nd ed.)
Publisher: Prentice Hall (2012)
Author: Bekaert, G., & Hodrick, R.
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