导论国际金融概览TheOverviewofInternationalFinanceCourse1课件.ppt

The Overview of International Finance Course 2011.9.6 How much do you know about international finance? The Overview 1. What is International finance? International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, global financial system, and how these affect international trade. It also studies international projects, international investments and capital flows, and trade deficits. It includes the study of futures, options and currency swaps. International finance is a branch of international economics. Theories of international finance Important theories in international finance include the Mundell-Fleming model, the optimum currency area (OCA) theory, as well as the purchasing power parity (PPP) theory. Whereas international trade theory makes use of mostly microeconomic methods and theories, international finance theory makes use of predominantly macroeconomic methods and concepts. 2.Why we study international finance? Globalization is rapidly emerging. Emergence of worldwide financial markets and better access to external financing for borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment. Realization of a global common market, based on the freedom of exchange of goods and capital. Multinational corporation A multinational corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. Some multinational corporations are very big, with budgets that exceed some nations GDPs. Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in international relations and globalization. Multinational corporation MNCs organize this operation in different countries through any of the follow