Financial Transactions in the International Trade

Teachers

Included in study programs

Teaching results

Teaching results:
In particular, students will acquire the following knowledge:
- basic knowledge about the history and development of money and the money market,
- about currency, monetary systems, the international monetary system,
- about exchange rates and exchange rate quotations, exchange rate risks,
- about the possibilities of using financial derivatives,
- about the possibilities of implementing promissory notes as a tool for the
implementation of payment in international trade,
- about the possibilities of implementing documentary payments as a tool to ensure
payment in international trade.
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In particular, students will acquire the following skills:
- carry out analyses and calculations related to financial operations,
- identify, assess, and correctly interpret basic aggregate macroeconomic variables
related to international trade (exchange rates, balance of payments),
- calculate and interpret basic financial derivatives used in the international
environment (forwards, futures, swaps, options),
- to identify suitable instruments for ensuring payment in international trade, a suitable
strategy for their use,
- based on information about the current situation in the area of ​​the debt crisis in the
Eurozone, to propose effective solutions for the needs arising in international trade.
In particular, students will acquire the following competencies:
- independence and foresight of diverse situations in the field of financial operations at
the international level,
- professionally present the results obtained from practice in front the professional
public.

Indicative content

Indicative content:
History and development of money, money market, currency and monetary systems, exchange
rate, foreign exchange market, financial operations and balance of payments, international
financial markets, financial market of the Slovak Republic, basic types of financial derivatives,
swaps, forwards and futures, options, promissory note, foreign promissory notes, documentary
letter of credit, documentary collection, debt crisis in the eurozone and the EU.

Support literature

PAVELKA, Ľubomír, RUŽEKOVÁ, Viera, ZUBAĽOVÁ, Ľubica. Inštitucionálna podpora
financovania exportu a zahraničných investícií vo vybraných krajinách EÚ. Praha: Leges, 2021. 196
s. ISBN 978-80-7502-503-6
CHOVANCOVÁ, Božena - MALACKÁ, Viera - ÁRENDÁŠ, Peter - KOTLEBOVÁ, Jana.
Investovanie na finančných trhoch. 1. vydanie. Bratislava : Sprint 2, 2021. ISBN 978-80-89710-53
MADURA, Jeff. International Financial Management. 14th Edition. Boston: CENGAGE, 2021. ISBN 978-
0-357-13054-4.

Syllabus

Course syllabus: 1. Introduction to the subject, history and development of money, definition, money market, functions of money, money aggregates, and money multiplier. 2. Currency, monetary (monetary) systems, and the international monetary system - the genesis of the current state. Circulation of money. Alternative currencies. 3. Exchange rate, exchange rate regimes, factors affecting the amount of the exchange rate, exchange rate quotation, and application to the euro. 4. Exchange rate risk, types of exchange rate risk, methods of protection against exchange rate risk. 5. The foreign exchange market (forex), characteristics, principle of operation, historical development, current trends, prompt operations on the foreign exchange market (conversions, arbitrage). 6. Financial operations and balance of payments (FDI, portfolio investments, bonds, participation, etc.), foreign indebtedness, international investment position of the Slovak Republic - substantive and methodological contexts. 7. International financial markets, the financial market of the Slovak Republic - entities, market categorization, trends, current situation on the money and capital market. 8. Financial derivatives - purpose, classification, basic comparison of individual types, examples of swaps. 9. Financial derivatives - forwards and futures - purpose, FRA contract, examples for calculating forwards. 10. Financial derivatives - options - purpose, classification, basic comparison of individual types, examples for calculating options. 11. Promissory notes, own promissory notes, foreign promissory notes, bill acceptance, bill aval, bill protest, bill discount, discount credit 12. Documentary payments, documentary letter of credit, documentary direct debit, other types, documentary payments as a tool to ensure payment in international trade and international transport of goods. 13. Debt crisis in the eurozone and in the EU as a whole: causes, course, prognosis. ECB activities, euroval 1 and 2, banking union, fiscal union.

Requirements to complete the course

Requirements to complete the course:
 20% active fulfillment of ongoing assignments
 20% semestral work and presentation
 60% written exam

Student workload

Total study load (in hours):
Workload: 78 hours
Separate load for individual educational activities
Attendance in lectures: 0 hours
Attendance in seminars: 26 hours
Preparation for seminars: 26 hours
Preparation for the exam: 26 hours

Language whose command is required to complete the course

Language whose command is required to complete the course:Slovak and English language

Date of approval: 05.04.2024

Date of the latest change: 16.04.2024