Course: International Finance

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Course title International Finance
Course code KUF/MFIN
Organizational form of instruction Lecture + Lesson
Level of course Master
Year of study 2
Semester Winter
Number of ECTS credits 5
Language of instruction Czech
Status of course Compulsory
Form of instruction unspecified
Work placements unspecified
Recommended optional programme components None
  • Jílek Milan, doc. Ing. Ph.D.
  • Zeman Petr, Ing. Ph.D.
Course content
Lectures: 1. The balance of payment. 2. The macroeconomic context of balance of payment. 3. Foreign exchange market and foreign exchange rate. 4. The principles of foreign exchange rate determination, the Law of One Price, purchasing power parity, monetary arrangements and adjustments mechanisms. 5. Fisher effect, interest rate parity condition, interest arbitrage, forward rate and future spot rate relationship. 6. Exchange rate regime. 7. International monetary arrangements, foreign exchange rate regime of CZK. 8. Currency derivatives - currency forwards, currency futures. 9. Currency derivatives - currency options, currency swaps. 10. Foreign exchange risk. 11. The international direct investments. 12. The international portfolio investments. 13. International Monetary Fund and Financial Institutions.

Learning activities and teaching methods
Monologic (reading, lecture, briefing)
  • Class attendance - 42 hours per semester
  • Preparation for classes - 40 hours per semester
  • Preparation for credit - 20 hours per semester
  • Semestral paper - 15 hours per semester
  • Preparation for exam - 23 hours per semester
Learning outcomes
The main aim of this course is to acquaint students with the effects of the open global economy on the international flows of goods, services and investments; and on the decision-making and behaviour of firms.The course focuses on the interconnection of the macroeconomic and microeconomic aspects of international finance in the banking and non-banking sectors.
Students understand the principles of international finance. Students have the theoretical and methodological backgrounds for economical and financial decision-making in the international environment.
It is assumed that the student has a basic knowledge of financial markets, securities and macroeconomics.

Assessment methods and criteria
Oral examination, Didactic test, Combined exam, Interim evaluation

Credit Requirements: Active participation in seminars - maximum 3 absences Defense of seminar work. Two credit tests. In each of the credit test the student has to reach at least 60% points. The credit is conditional on enrollment in the International Finance in Moodle system. Exam requirements: The exam consists of a written and oral part. Rating: Excellent (90-100%) Very good (75-89%) Well (60 - 74%) Insufficient (0 - 59%) Assessment weight: credit test result 30%, written test result 30%, oral exam 40%
Recommended literature
  • Baldwin, Richard E.; Wyplosz, Charles,; Šaroch, Stanislav,; Jiránková, Martina,; Hnát, Pavel,; Němcová, Ingeborg,; Žďárek, Václav,; Bič, Josef; Viktorová, Dana,; Laboutková, Šárka,; Šmejkal, Václav,; Dolejší, Anna. Ekonomie evropské integrace. 4. vydání. Praha Grada Publishing, 2013. ISBN 978-80-247-4568-8.
  • Baldwin, Richard E.; Wyplosz, Charles. The economics of European integration. Sixth edition. London : McGraw-Hill, 2020. ISBN 978-1-5268-4721-8.
  • Buckley, Adrian. International finance : a practical perspective. 1st pub. Harlow : Pearson, 2012. ISBN 978-0-273-73186-3.
  • Jílek, Josef. Finance v globální ekonomice. II, Měnová a kurzová politika. 1. vyd. Praha : Grada, 2013. ISBN 978-80-247-4516-9.
  • Jílek, Milan. Mezinárodní finance. 1. vyd. Č. Budějovice : ZF JU, 2001. ISBN 80-7040-508-2.
  • Mandel, Martin; Durčáková, Jaroslava. Mezinárodní finance a devizový trh. Vydání 1. Praha : Management Press, 2016. ISBN 978-80-7261-287-1.
  • Mandel, Martin; Tomšík, Vladimír. Monetární ekonomie v období konvergence a krize. V nakladatelství Management Press vydání 1. Praha : Management Press, 2018. ISBN 978-80-7261-545-2.
  • Mishkin, Frederic S.; Matthews, Kent,; Giuliodori, Massimo. The economics of money, banking and financial markets. European edition. Harlow : Pearson, 2013. ISBN 978-0-273-73180-1.
  • Revenda, Zbyněk; Mandel, Martin,; Kodera, Jan; Musílek, Petr,; Dvořák, Petr. Peněžní ekonomie a bankovnictví. 6. aktualizované vydání. Praha : Management Press, 2015. ISBN 978-80-7261-279-6.

Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester
Faculty: Faculty of Economics Study plan (Version): Financial and Insurance Mathematics (4) Category: Mathematics courses 3 Recommended year of study:3, Recommended semester: Winter
Faculty: Faculty of Economics Study plan (Version): Accounting and Financial Management (3) Category: Economy 2 Recommended year of study:2, Recommended semester: Winter
Faculty: Faculty of Economics Study plan (Version): Management of Commerce (1) Category: Economy 2 Recommended year of study:2, Recommended semester: Winter