Analyze the effect of the terms of trade and other macroeconomic conditions on international monetary flows through FX markets and their effect on relative prices.

Optional Materials

https://saylordotorg.github.io/text_international-finance-theory-and-policy/ (open source)

Additional course readings and media are available within HuskyCT, through either an Internet link or Library Resources

Course Description

This course is a study and discussion of the following broad topics: Payments and financing of international trade, foreign exchange markets, the balance of payments, capital flows, and international monetary arrangements.

Course Objectives

• Analyze the effect of the terms of trade and other macroeconomic conditions on international monetary flows through FX markets and their effect on relative prices.

• Apply the framework of macroeconomic (e.g. balance of payments) and financial theories (e.g. arbitrage) developed in class to current or hypothetical international changes.

• Evaluate FX hedging strategies for both investments and supply chains.