SIB675 - International Finance II

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Last revision date Apr 6, 2020 8:37:33 AM
Last review date Apr 6, 2020 8:38:19 AM

Subject Title
International Finance II

Subject Description
The complexities relating to the international flow of funds and the financing of international trade are emphasized in this course. The student is introduced to the intricacies of the international money markets, how governments influence exchange rates, the risks of exchange rate fluctuations and what options are available to firms to mitigate those risks. Strategic global investment and cash flow decisions are discussed. Emphasis is placed on an awareness of the financial risk of international trade, how these factors impact the profitability of Canadian businesses and the making of business decisions.

Credit Status
One credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

  1. Identify the basic motivations and risks of businesses involved in international trade.
  2. Differentiate among the components and the factors that influence the balance of payments.
  3. Contrast the functions of the five international financial markets.
  4. Interpret foreign exchange quotations and compute the financial risks under hedged and non-hedged conditions.
  5. Describe the five factors that influence exchange rates and their effect on exchange rate equilibrium.
  6. Identify the four exchange rate systems and how government policy can influence them.
  7. Explain the theories of Purchasing Power Parity and the International Fisher Effect.
  8. Analyze the three forms of exchange rate exposures.
  9. Identify the ten strategies that can be employed to manage the risks of exchange rate exposure.
  10. Detail the techniques to optimize cash flow.
  11. Evaluate the political and financial variables that contribute to country risks and how exposure can be reduced.
  12. Evaluate the impact of tax laws of various countries on business policies and cash flow.

Essential Employability Skills
Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Execute mathematical operations accurately.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Take responsibility for one's own actions, decisions, and consequences.

Academic Integrity
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Please visit the Academic Integrity website to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

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Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.