2 19/12/10 B02013 - Introduction to International finance... Why is International Finance Important?invest money, buy material, produce goods and sell products and services overseas.. 3
Trang 1CHAPTER 1: INTRODUCTION TO
INTERNATIONAL FINANCE
1 Introduction to International finance
2 Financial instruments
3 International financial market
1 Introduction to International finance
2 Financial instruments
3 International financial market
Trang 21 Introduction to International finance
1.1 Why is International Finance Important?
2 19/12/10 B02013 - Introduction to
International finance
Trang 3Why is International Finance Important?
invest money, buy material, produce goods and sell products and services overseas
additional risks We need to know how to identify these risks and then how to control or remove
them
3
invest money, buy material, produce goods and sell products and services overseas
additional risks We need to know how to identify these risks and then how to control or remove
them
19/12/10 B02013 - Introduction to
International finance
Trang 41.2 What is different about international
Financial Management?
1.2.1 Culture, history and institutions
1.2.2 Corporate governance
1.2.3 Foreign Exchange Risk
1.2.4 Political Risk
1.2.5 Market Imperfections
1.2.6 Expanded Opportunity Set
4
1.2.1 Culture, history and institutions
1.2.2 Corporate governance
1.2.3 Foreign Exchange Risk
1.2.4 Political Risk
1.2.5 Market Imperfections
1.2.6 Expanded Opportunity Set
19/12/10 B02013 - Introduction to
International finance
Trang 52 Financial instruments:
• Cash
• Shares
• Bonds
• Other cash instruments such as loans and
deposits
• Derivative instruments
• Cash
• Shares
• Bonds
• Other cash instruments such as loans and
deposits
• Derivative instruments
5 19/12/10 B02013 - Introduction to
International finance
Trang 63.1.International capital transfer.
• Unilateral transfer
• Bilateral transfers
• Multilaterals transfer
3 International Financial Market
3.1.International capital transfer.
• Unilateral transfer
• Bilateral transfers
• Multilaterals transfer
6 19/12/10 B02013 - Introduction to
International finance
Trang 73.2 Classification of Financial Market
• Equity market
• Bonds market
• Foreign exchange markets
3.2 Classification of Financial Market
• Equity market
• Bonds market
• Foreign exchange markets
7 19/12/10 B02013 - Introduction to
International finance
Trang 83.2.2 Length of Maturity
– Currency market
– Capital market
3.2.3 Kind of Trading:
- Primary Market
- Secondary Market
- Collateralized Mortgage Obligations
- Future contracts
3.2.2 Length of Maturity
– Currency market
– Capital market
3.2.3 Kind of Trading:
- Primary Market
- Secondary Market
- Collateralized Mortgage Obligations
- Future contracts
8 19/12/10 B02013 - Introduction to
International finance
Trang 9Discussion questions
• What are the Advantages and
disadvantages of financial instruments?
• Update financial news
• What are the Advantages and
disadvantages of financial instruments?
• Update financial news
9 19/12/10 B02013 - Introduction to
International finance