International money market

The core of the international money market is the Euro currency market. A Euro currency market is a time deposit of money in an international bank located in a country different from the country that issued the currency. Eurocurrency is currency deposited by national governments or corporations in banks outside their home market. This applies to any currency and to banks in any country. For example, Mauritius won deposited at a bank in South Africa, is considered eurocurrency.

Introduction to international financial markets

International financial market can be taken to describe the process by which regional economies, societies and cultures have become integrated through a global network of political ideas through communication, transportation and trade.

           

Theories of International Finance

1. Mercantilism
2. Absolute advantage (Classical)
3. Comparative advantage
4. Factor proportion trade
5. International product cycle
6. New trade theory
7. National competition advantage

Contents

1. Theories of international trade.
2. International finance markets and intermediaries euro-currency and euro-bonds markets.
3. Balance of payment/exchange rate determination and the FOREX market.
4. Arbitraging/Hedging and speculation.
5. International parity condition.
6. Interest rate and purchasing power parity.
7. International trade finance.
8. FOREX risks.