International Finance is a subject that is constantly updated according to the development of the global financial market. It can be said that the content of International Finance is quite broad, it covers global trends of markets, financial institutions, financial products and technologies to the action of Public policy stems from the Government’s need to regulate and manage financial markets.
Specifically, the international finance course provides learners with the knowledge to analyze the relationships among three closely related and important macroeconomic indicators in an open economy: the exchange rate, the movement trend of capital flows, and the financial crisis. To achieve that, on the one hand, this course equips students with the knowledge of classic theories in international finance that show correlations between macroeconomic variables such as inflation, interest rates, and exchange rates. They are the interest rate parity, purchasing power parity, and international Fisher effect. On the other hand, this course also brings knowledge related to the international balance of payment, thereby helping students interpret the movement trends of international trade flows, and international capital flows, and these impacts on the health of the economy. In addition, this course also provides knowledge related to factors affecting exchange rates, government exchange rate policy enforcement, and financial crisis patterns that have occurred over the past few decades.