This course explores the characteristics of international financial markets and their role in affecting international investment decisions. In particular, the first part of the course focuses on the analysis of the main features of foreign exchange (FX) markets and introduces the main frameworks used to model and forecast exchange rates. Then, the second part of the course explores the design and management of international portfolios of equities. This analysis is extended to cover both strategic and tactical allocation concepts and a brief introduction to FX risk management.
The course also encourages discovery learning. In fact, students strengthen their discovery skills when analyzing the strengths and weaknesses of economic models for understanding the various issues, for example, on exchange rate markets and international portfolio management.