International Macroeconomics and Finance 2022
Teacher: Marko Korhonen (marko.korhonen@oulu.fi)
Readings and written assignments (20%), on-line lectures and exercises (30%), student presentations (25%) and reflective diary (25%). NO EXAMS.
1. Readings
Bekaert and Hodrick (2018). International Financial Management. Earlier editon (2009) is also ok.
2. How to complete the course
1) written assignment, 2) on-line lectures and exercises, 3) student presentations and 4) reflective diary
2.1 Written assignments (20%). It makes it easier to follow other parts of course if you do these assignments before on-line lectures (before February).
Read chapters (1 to 5) from Bakaert and Hodrick (chs, 1-5) and answer the following questions from each chapter:
Chapter 1
1. Define globalization. How has it proceeded in trade in goods and services versus capital markets?
2. What is a greenfield investment?
3. What is the IMF? What is the Worlds Bank? What is the WTO? What are their roles in the world economy?
Chapter 2
1. What is an exchange rate?
2. What is the structure of the foreign exchange market? Is it like, for example, the New York Stock Exchange?
3. How large are the bid-ask spreads in the spot market? What is their purpose?
Chapter 3
1. What is forward exchange rate? When does delivery occur in a 90-day forward contract?
2. What do we mean by the expected future spot rate?
3. What is a spot-forward swap? What is forward-forward swap?
Chapter 4
1. What are the major accounts of the balance of payments, and what transactions are recorded on each account?
2. Why is it important for an international manager to understand the balance of payments?
3. Define current account. If you add up all the current accounts of all countries in the world, the sum should be zero. Yet this is not so. Why?
4. Explain why private national savings plus government savings equals the current account of the balance of payments.
Chapter 5
1. How can you quantify currency risk in a floating exchange rate system?
2. What is likely to most credible exchange rate system?
3. How can central bank create money?
4. How can central bank peg the value of its currency relative to another currency?
5. What is an optimum currency area?
6. Do you believe its monetary union will be beneficial for Europe?
7. Do you think the euro will survive?
Please answer to them and send your answer to me by e-mail (DL is 31st March). Send me only one (1) .pdf or .docx file.
2.2 On-line lectures and exercises (30%)
Questions from on-line lectures and Bekaert and Hodrick book chs: 6-10. You can find on-line lectures from Moodle. Each short lecture involves exercise(s). Please answer to these exercises and send your answer (only one .pdf or .docx -file) to me by e-mail (DL is 31st March)
2.3 Presentations (25%)
Make a short video presentation (15 minutes) from one determined topic from Bakaert and Hodrick (chs, 11-22). Topics are given randomly for each student before 21st January.
The idea is not to present every detail, but instead, only the relevant key issues of the topic in the given time.
On-line video presentations and slides should be sent by email to me on February 28th at the latest.
Grading of presentations (max 25%)
excellent (25%)
- the key issues of the chapter are presented clearly at the given time
- the subject is linked to the relevant literature outside the book
good (15%)
- the key issues are presented
satisfactory (5%)
- the chapter is presented but somewhat unclearly and not to related to the recent literature
2.4 Reflective learning diary (25%)
· To follow on-line presentations actively (to watch all presentations)
· To make reflective learning diary and submit it to me before March 31st.
What is reflective learning diary?
The diary is a tool of reflection. It is subjective view that reflects what you have learnt from presentations
What to write?
you should discuss the presentations, summarize and comment on the topics
you should describe and analyze your own learning related to these topics
the ideas of presentation may be even be taken further and elaborated on
Possible questions to consider
- What did you learn from the presentations during seminars
- What was new to you?
- How has your understanding of the topic changed?
- What did you not understand?
- What kind of thoughts or ideas did other student’s presentations provoke?
- How do the presentations relate to your prior knowledge?
- How will these presentations support your development as a student
What not to write?
- The idea is not to copy the slides to your learning diary or make a list of what was discussed in the seminars
Please select 10 student presentations and write approximately one page per presentation (size 12 font with normal margins)
You should collect the reflective learning diaries into a portfolio with your name and student id on it and return it in pdf-format or docx-format to me.
Teacher: Marko Korhonen (marko.korhonen@oulu.fi)
Readings and written assignments (20%), on-line lectures and exercises (30%), student presentations (25%) and reflective diary (25%). NO EXAMS.
1. Readings
Bekaert and Hodrick (2018). International Financial Management. Earlier editon (2009) is also ok.
2. How to complete the course
1) written assignment, 2) on-line lectures and exercises, 3) student presentations and 4) reflective diary
2.1 Written assignments (20%). It makes it easier to follow other parts of course if you do these assignments before on-line lectures (before February).
Read chapters (1 to 5) from Bakaert and Hodrick (chs, 1-5) and answer the following questions from each chapter:
Chapter 1
1. Define globalization. How has it proceeded in trade in goods and services versus capital markets?
2. What is a greenfield investment?
3. What is the IMF? What is the Worlds Bank? What is the WTO? What are their roles in the world economy?
Chapter 2
1. What is an exchange rate?
2. What is the structure of the foreign exchange market? Is it like, for example, the New York Stock Exchange?
3. How large are the bid-ask spreads in the spot market? What is their purpose?
Chapter 3
1. What is forward exchange rate? When does delivery occur in a 90-day forward contract?
2. What do we mean by the expected future spot rate?
3. What is a spot-forward swap? What is forward-forward swap?
Chapter 4
1. What are the major accounts of the balance of payments, and what transactions are recorded on each account?
2. Why is it important for an international manager to understand the balance of payments?
3. Define current account. If you add up all the current accounts of all countries in the world, the sum should be zero. Yet this is not so. Why?
4. Explain why private national savings plus government savings equals the current account of the balance of payments.
Chapter 5
1. How can you quantify currency risk in a floating exchange rate system?
2. What is likely to most credible exchange rate system?
3. How can central bank create money?
4. How can central bank peg the value of its currency relative to another currency?
5. What is an optimum currency area?
6. Do you believe its monetary union will be beneficial for Europe?
7. Do you think the euro will survive?
Please answer to them and send your answer to me by e-mail (DL is 31st March). Send me only one (1) .pdf or .docx file.
2.2 On-line lectures and exercises (30%)
Questions from on-line lectures and Bekaert and Hodrick book chs: 6-10. You can find on-line lectures from Moodle. Each short lecture involves exercise(s). Please answer to these exercises and send your answer (only one .pdf or .docx -file) to me by e-mail (DL is 31st March)
2.3 Presentations (25%)
Make a short video presentation (15 minutes) from one determined topic from Bakaert and Hodrick (chs, 11-22). Topics are given randomly for each student before 21st January.
The idea is not to present every detail, but instead, only the relevant key issues of the topic in the given time.
On-line video presentations and slides should be sent by email to me on February 28th at the latest.
Grading of presentations (max 25%)
excellent (25%)
- the key issues of the chapter are presented clearly at the given time
- the subject is linked to the relevant literature outside the book
good (15%)
- the key issues are presented
satisfactory (5%)
- the chapter is presented but somewhat unclearly and not to related to the recent literature
2.4 Reflective learning diary (25%)
· To follow on-line presentations actively (to watch all presentations)
· To make reflective learning diary and submit it to me before March 31st.
What is reflective learning diary?
The diary is a tool of reflection. It is subjective view that reflects what you have learnt from presentations
What to write?
you should discuss the presentations, summarize and comment on the topics
you should describe and analyze your own learning related to these topics
the ideas of presentation may be even be taken further and elaborated on
Possible questions to consider
- What did you learn from the presentations during seminars
- What was new to you?
- How has your understanding of the topic changed?
- What did you not understand?
- What kind of thoughts or ideas did other student’s presentations provoke?
- How do the presentations relate to your prior knowledge?
- How will these presentations support your development as a student
What not to write?
- The idea is not to copy the slides to your learning diary or make a list of what was discussed in the seminars
Please select 10 student presentations and write approximately one page per presentation (size 12 font with normal margins)
You should collect the reflective learning diaries into a portfolio with your name and student id on it and return it in pdf-format or docx-format to me.
- Opettaja: Sanna Huikari
- Opettaja: Marko Korhonen