Fin 439- Multinational Financial Management - DOC by W1nA4Z


									Fin 439- Multinational Financial Management
Instructor: Dr. Cetin Ciner

Pointers for Midterm I

Please do not take this as an exhaustive list, rather as some suggestions for better

Chp 4- Balance of Payments

   -   Balance of Payments statistics and information content
   -   Current Account and Capital Account
   -   Balance of Payments identity
   -   Trade Balance and likely impact on currency values
   -   Interpreting whether Current Account deficit is good or bad for economy

Chp 5- The Market for Foreign Exchange

   -   Function and structure of the FX market
   -   The spot market and quotations
   -   The bid-ask spread and cross exchange rate
   -   Triangular arbitrage
   -   Forward rates and calculation of forward premium

Chp 3- International Monetary System

   -   The trilemma condition and understanding exchange rate economics
   -   The Bretton Woods system
   -   The flexible exchange rate regime and current arrangements
   -   The European Monetary System and the Euro
   -   Advantages and disadvantages of fixed vs flexible exchange rate systems
   -   The Argentine peso crisis and the currency board regime

Chp 6- International Parity Conditions

   -   Interest rate parity and covered interest arbitrage
   -   Interest rate parity and exchange rate determination (uncovered interest rate
   -   Purchasing power parity and the Fisher effects
   -   Calculation of changes in real exchange rates
   -   Forecasting exchange rates
Chp 7- Foreign Exchange Determination

   -   Balance of Payments (flow of funds) model and its main implications
   -   Monetary approach to exchange rate determination and its main implications
   -   Asset market approach and its main implications

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