NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF BANKING AND FINANCE

CHAPTER 1
INTRODUCTION TO
INTERNATIONAL FINANCE
Ha noi, Aug 2023

Dr. Phan Thị Thanh Hương

Viện Ngân hàng - Tài chính - Đại học Kinh tế quốc dân
INTRODUCTION
I. Objective:
After completing this course, student can:
◼ Understand about international monetary system, including foundation and
development and current issues.
◼ Recognizing the importance of the International Balance of Payments
(international settlement of payments) through understanding the content
and analysis, thereby making recommendations to improve Vietnam's
international payment system.
◼ Understand how to list and classify exchange rates, analyze and evaluate
the operation and implementation of exchange rate policies in some
countries and Vietnam.
◼ Understand how the Forex Market works and what financial derivatives
mean.
◼ Learn about International Capital Markets, including the International Bond
Market and the International Stock Market.
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INTRODUCTION
II. Content:
◼ The theory part has 6 chapters with a duration of 27 theoretical
hours and 18 practical hours.
◼ The course is presented with a combination of lectures, textbooks,
references and case studies, examples and exercises. Teaching and
learning methods aim to promote students' initiative, lecturers'
lectures are presented in parallel with students' discussion on the
basis of using textbooks, reference materials and other materials.
other utility tools.
◼ Chapter 1: Introduction to the subject
◼ Chapter 2: International Monetary System
◼ Chapter 3: International balance of payments
◼ Chapter 4: Exchange rate and exchange rate policy
◼ Chapter 5: Forex market
◼ Chapter 6: International bond and stock market
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INTRODUCTION
III. Reference
◼ Course books:
[1] Jeff Madura (2013). International Financial Management. Thomson South-
Western Publishing.
[2] David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett (2016). Multinational
Business Finance. Pearson Addison Wesley Publishing.
◼ References:
[1] C.Paul Hallwood and Ronald MacDonald (2005). International Money and
Finance. Blackwell Publishing.
[2] www.worldbank.org
[3] www.imf.org
[4] www.adb.org
[5] www.sbv.gov.vn
[6] www.mof.gov.vn
[7] www.vneconomy.com.vn

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 PERFORMANCE
ASSESSMENT
Overall assessments

In class Final exam (50%)

- Attendance (10%) -Open questions

- Group assignments -Multiple choices
- Mid term test -Compulsory
calculations

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OVERVIEW
◼ Definition of international finance
International finance is the movement of capital between
countries associated with economic, cultural, political,
diplomatic, and military relations between nations...
International organizations through the creation and use
of monetary funds can meet the different needs of actors
in international relations.
◼ What makes international finance differences?
- Forex risk
- Political riks: change in law, political institutions.
- Expanded opportunities.
- Market imperfection.
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OVERVIEW
◼ Role of international finance
- Exploiting foreign resources for domestic socio-economic
development.
- Promote national economies to quickly integrate into the
economy.
- Create opportunities to improve the efficiency of using
financial resources.
◼ Content of international finance
- Monetary relations: International payments, international
investment, international credit.
- International funds
- International banks and finance institutions
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