The international financial market, however, has some features that are different from the domestic financial market. This course identifies and studies these unique features. The economic and financial relations between countries have similar characteristics to the relations between states within federal governments. Countries, however, tend to have different economic and monetary policies. National economic policies introduce barriers to the movement of goods, labor, and capital.
Monetary policies introduce different currencies.
Then, barriers to capital flows and exchange rates are unique features of the international financial market. These risks arise from the possibility of unexpected changes in national economic policies and monetary policies, respectively. Since these risks are specific to the international environment, there are specific tools and techniques designed to deal with them. This course studies these specific risks and the techniques used to minimize the impact of them in international markets. Besides studying exchange rates and the effects of national economic policies, this course attempts to cover the basic principles, techniques and tools used by firms to make decisions in an international context.