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Considering the high volatility of the financial markets at the international level, together with the wide range of financial products, this course aims to provide a general knowledge of International Financial Management, and perceive the importance of the exchange risk in business decisions.

The companies have an international perspective to support the production of goods and provision of services, marketing and financial and technological decisions. In a global context, and with the increasingly integrated financial markets, this curricular unit aims to provide students with a solid understanding of international financial management, in order to serve as a basis for business decision making in the future.

The specific objectives are as follows:

1. Know the functioning and the main international financial institutions

2. Know the main international financial markets, namely the foreign exchange market and the money market

3. In the foreign exchange market, to know the players, spot and forward exchange rates and their determinants

4. Detect, evaluate and manage financial risks

At the end of the course, students should be able to:

- Understand the functioning of international financial markets.

- Understand the functioning of the foreign exchange market.

- Using derivatives market instruments in foreign exchange risk management.

- Analyze and evaluate major international financial products.

- Acquire skills for making the company's financial decisions in an international context.

- Know the strategies to minimize the risk in international finance.

- Relate exchange rates with interest rates and inflation rates.

- Apply the basic tools for financing operations internationally.

1. OVERVIEW OF INTERNATIONAL FINANCE
1.1 Introduction
1.2 International Financial Markets
1.2.1 International Monetary Market (euro currencies, eurocredits and euronotes)
1.2.2 International Bond Market
1.2.3 International Stock Market
1.2.4 Foreign Exchange Market
1.2.5 Derivatives Market
1.2.6 International Gold Market

2. EXCHANGE MARKET
2.1 Definition, agents and assets
2.2 Characterization of the exchange market
2.3 Forms of foreign exchange trading
2.3.1 Spot exchange rate
2.3.2 Cross rates
2.3.3 Forward exchange rate
2.4 Basic behavior in the foreign exchange market
2.4.1 Speculation
2.4.2 Arbitration
2.4.3 Risk coverage
2.5 Determinants of the exchange rate
2.5.1 Movements of goods and capital
2.5.2 In the spot market,
2.5.2.1 Theory of purchasing power parity
2.5.2.2 Interest rate and exchange rate
2.5.3 In the forward market,
2.5.3.1 Fisher effect
2.5.3.2 International Fisher Effect
2.5.3.3 Interest Rate Parity Theory
2.6 Exchange rate forecasts

3. FINANCIAL RISKS
3.1 Risk Management
3.2 Definitions
3.3 Sources of international uncertainty and risk
3.4 Identification of the risk
3.5 Quantification of risk
3.5.1 Probability estimation
3.5.2 Mean and standard deviation
3.5.3 Investment risk
3.5.4 Value-at-Risk (VaR)
3.6 Risk management strategy
3.7 Financial risk management
3.8 Derivatives
3.8.1 Forward contracts
3.8.2 Swaps
3.9 Exchange risk management
3.9.1 Reduction of exposure to exchange risk
3.9.1.1 Choice of billing currency
3.9.1.2 Monetary clauses
3.9.1.3 Change of deadlines
3.9.1.4 Netting

Under the terms of the Bachelor's Regulation:

a) The effective attendance of students in class will be recorded and, if the number of absences per student exceeds 30% of the total number of contact sessions for each course unit, will be automatically transferred to the final evaluation of the normal season;

b) In the written tests and in the defined evaluation elements it is necessary to obtain a minimum grade of 7.5 points;

c) If the student misses or achieves a grade lower than 7.5 points in the tests or evaluation elements referred to in the previous number, he / she will be automatically transferred to the final evaluation of the normal season;

d) If the student misses or achieves a grade lower than 7.5 points in the second written test (held on the same date as the final written test of the normal season), he / she may require registration for evaluation at the time of appeal;

e) All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.