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2014/2015  KAN-CSCEO1006U  International Macro and Financial Markets

English Title
International Macro and Financial Markets

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Ole Risager - Department of International Economics and Management (INT)
Ole Risager
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 08-07-2014
Learning objectives
  • The student should be able to outline what goes on in the global economy and financial markets and furthermore be able to analyze how these developments affect businesses and government policies
  • The student should be familiar with key economic indicators and be able to extract relevant information from these variable
  • The student should be familiar with major historic international payments systems and be able to explain how these systems affect businesses, investors and governments
  • The student should be familiar with the most fundamental theories of exchange rate behavior and be able to explain the key factors that drive exchange rates
  • The student should be able to explain how companies through the use of hedging techniques (forwards, futures, options and swaps) can manage financial risks
International Macro and Financial Markets:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period December/January
Aids allowed to bring to the exam Closed Book: no aids
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure

The course first outlines current macro and financial market trends within a historical context that enables students to get a proper perspective on the current financial crisis and the global macroeconomy performance. Then the course presents a menu of useful early warning signals and leading indicators that companies use in their risk management. Subsequently follows a presentation of different theories that seek to explain key developments in currency markets in particular. How multinational companies can manage these currency market movements, including upside and downside risks, is the next topic. In this context we also present and discuss various ways of hedging risks including futures, options and swap contracts. Finally, students are also presented to various financial investment strategies.

Teaching methods
A mixture of lectures, exercises, and cases. Students are expected to participate in class discussions.
Expected literature

Moffett, Stonehill, and Eiteman (2006). Fundamentals of Multinational Finance, 2nd Edition. Addison-Wesley.
Yamarone, Richard (2004). The Trader's Guide to Key Economic Indicators. Bloomberg.
Risager, Ole. Investing in Value Stocks. McGraw-Hill, forthcoming November 2009.

Last updated on 08-07-2014