COURSE TITLE: International
Financial Institutions and
the Forces of Globalization
This
course focuses on the activities and roles of financial institutions in the
international financial system. It
examines basic concepts in international finance and international, regional
and national financial markets. Key
policy issues are discussed such as the environment, ethical questions, equity
issues, national interests, the debt crisis, developing countries’ needs, and
the differing concerns of borrowers, lenders and investors. A variety of financial instruments and loan,
guarantee and insurance programs are examined.
This course provides a conceptual foundation for understanding the
sources of financing for international transactions, including the
possibilities and limitations of different organizations.
Class
Dates: Thursdays, 7:15 P.M. – 9:45 P.M.
1st
Class – August 29, 2002
Last Class – December 5, 2002
Final Exam Due -
December 12, 2002
Course
Objectives: This course provides an
introduction to, and survey of international financial institutions,
particularly those based in Washington.
Aside from the basic mechanics of international finance and the
institutions that support it, considerable emphasis will be placed on the
policy issues surrounding international lending and investment. The objectives of the course are to
familiarize students with the workings of these institutions, explain the
practical aspects of their operations, and explore the results of their
activities in recent years.
Instructor: Delio E. Gianturco 703-941-1743 (H)
703-525-0966
(O)
Method of Instruction: This
course will be taught as a survey course.
Topics will be covered by the instructor through lectures accompanied by
visual material. Case studies will be a
regular feature of classroom instruction.
Guest speakers from international financial institutions will discuss
the roles of their organizations and the challenges they face.
Class Preparation
Requirements: Students are required to complete all
assigned readings before each class.
They should also keep abreast of current issues in international finance
by reading at least one newspaper with international coverage (Wall Street
Journal, Washington Post, New York Times, Financial Times). Class participation is important and
students are encouraged to ask questions and participate in discussions.
Books and Materials: James C. Baker. International
Finance: Management,
Markets, and Institutions, Prentice Hall (1998)
Joseph Stiglitz. Globalization
and Its Discontents
W. W. Norton (2002)
Grading: Weights for the course grade will be as
follows:
Class
Participation 33%
Mid-Term Exam 33%
Final
Examination 33%
SCHEDULE
September 5 Activities and Role of the
World Bank Group (IBRD, IDA, MIGA, IFC)
Guest Speaker
September 12 Activities and Role of
International Monetary Fund (IMF) and National Monetary Authorities (Central
Banks)
September 19 Activities and Role of
Regional Development Banks (Inter-American, Asian, African, European Banks)
Guest
Speaker
September 26 Activities and Role of
Concessional Lenders and Grant Agencies (USAID)
October 3 Activities and Role of
Foreign Direct Investors and Portfolio Investors (Trends, Techniques and
Issues)
October 10 Activities and
Role of Export Credit Agencies and Investment Insurers (Eximbank, OPIC, etc.)
Guest Speaker
October 17 Activities and Role of
Commercial Banks (Trends, Techniques and Issues)
October 24 Mechanics and
Operation of Financial Markets (Currency, Loan and Stock Markets)
Guest Speaker
October 31 Types of
Financial Instruments (Debt, Equity, and Currency Instruments)
November 7 Country Risk
Analysis (Political and Economic Factors)
November 14 Corporate and Project Risk Analysis (Financial,
Technical and Credit Analysis)
Guest Speaker
November 21 International Debt Issues
(Environmental Concerns, Debt and Development, Payment Problems, Aid and Trade,
etc.)
December 5 Regional International
Finance Concerns (Central and Eastern Europe, Former Soviet Union, China,
Southeast Asia, Africa, Middle East, Latin America)
Final Exam Handed Out