International Finance and Currency Markets

International Finance and Currency Markets is a specialized field that examines the monetary interactions between countries, focusing on the dynamics of foreign exchange rates, international investments, and the management of financial risk for multinational corporations. It encompasses the study of the foreign exchange (forex) market—the world's largest financial market—where currencies are traded, and analyzes how fluctuations in currency values impact international trade, capital flows, and corporate profitability. Key activities within this domain include hedging against currency risk, financing international operations, and making cross-border investment decisions, all of which are fundamental for businesses operating in a globalized economy.

1. Foundations of International Finance
   1. Definition and Scope of International Finance
      1. Key Concepts and Terminology
      2. Differences from Domestic Finance
   2. Globalization and the Multinational Corporation
      1. Characteristics of MNCs
      2. Organizational Structures of MNCs
      3. International Business Strategies
   3. Goals of the Multinational Corporation
      1. Shareholder Wealth Maximization
      2. Stakeholder Considerations
      3. Corporate Social Responsibility in International Contexts
   4. Agency Problems and Corporate Governance
      1. Principal-Agent Problem in MNCs
      2. Corporate Governance Mechanisms
      3. International Variations in Governance
   5. Distinction between International and Domestic Finance
      1. Exchange Rate Risk
      2. Political Risk
      3. Market Imperfections
      4. Expanded Opportunity Set