INTERNATIONAL FINANCE AND SUSTAINABILITY

Single discipline educational activity

Course Sheet

Course code:

FINSOS22

Academic Year of enrolment:

2023

Year of supply:

2023/2024

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in ECONOMICS AND FINANCE OF FIRM AND ECOSYSTEMS

Disciplinary Sector:

Political Economy

Language:

Italian

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

GIULIONI Gianfranco

Cycle:

First semester

Hours of classroom activity:

Individual study hours:

153

Prerequisites:

It is desirable that the student has a preliminary knowledge of microeconomics and macroeconomics.

Objectives

EDUCATIONAL OBJECTIVES

The course aims to provide students with the tools to understand the economic dynamics that act on the global economic-financial ecosystem. Understanding the effects that these dynamics have on sectoral and territorial systems constitutes a useful link with other economic disciplines of the degree program. The course teachings therefore constitute an important step towards achieving the main objective of the entire course of study: to train experts in economic sciences who are fully aware of the functioning of economic-financial systems and are able to identify, plan and manage suitable strategies. to face rapidly changing and increasingly complex contexts.

EXPECTED LEARNING RESULTS

Knowledge

At the end of the course the student will have to know and understand the aspects related to international finance and the contribution that finance can make to the achievement of the Sustainable Development objectives. The determinants of the exchange rate and the effects that changes in this rate have on the economic system play a particularly important role. The student will also have to know the main exchange rate regimes and the different effect that macroeconomic policies have in these different regimes. Understanding the state of the art and the main issues related to the dissemination of sustainable finance will be an integral part of the student's educational process.

Ability to apply knowledge

The acquired knowledge can be applied in the financial sector, in public and private companies, consortia of companies, business and social associations, research organizations, governmental institutions (local, national and international), development agencies for:
- develop exchange rate risk hedging mechanisms in import / export companies;
- develop procurement strategies for raw materials quoted in foreign currencies;
- manage financial investments in different territorial contexts;
- establish the degree of consideration of ESG (Environmental, Social and Governance) factors in the financial choices of the main economic players.

Autonomy of judgment

At the end of the course the student must:
- be able to decide independently on the advisability of making financial investments in foreign currencies also with a view to sustainable development;
- knowing how to evaluate the reliability of the various nations on the basis of their macroeconomic conditions in the global economic context.

Communication skills

At the end of the course the student must:
- know how to inform about the advantages and disadvantages of making financial investments in foreign currencies;
- be able to describe activities, products and products in an adequate language
sustainable financial services.

Ability to learn

At the end of the course the student must:
- be able to autonomously learn advanced notions in specialized topics related to international and sustainable finance.

Contents

The course is divided into two parts. The first illustrates the theoretical foundations of international finance. The second discusses the possible contributions of finance to the achievement of sustainable development goals.
In the first part of the course the main theories of determining the exchange rate are analyzed. In particular, the role that monetary and financial variables play in these theories is highlighted. The study of the effects of Monetary Policies on relevant variables such as interest rates and the price level plays a central role in this part of the course.
The second part aims to provide a conceptual map concerning the role of the various players in the financial system, the market dynamics and the spaces for regulation capable of promoting the consideration of ESG (Environmental, Social and Governance) factors in choices of financial actors.

Extended Syllabus

PART I - Exchange rates and macroeconomics in the open economy
1. Introduction to international finance
2. National accounts and balance of payments
3. Exchange Rates and Currency Markets: A Portfolio Approach
4. Currency, interest rates and exchange rates
5. Price level and exchange rate in the long run
6. Production and exchange rate in the short run
7. Fixed exchange rates and foreign exchange market intervention

PART II - Finance for sustainable development
1. Introduction
2. From sustainable development to sustainable finance
3. The role of finance in supporting sustainable development
4. Obstacles to the development of sustainable finance
5. The Action Plan of the European Commission and the implementing measures

Recommended Bibliography

Part one
Krugman, Obstfeld and Melitz, International Economics 2, Pearson
chapters 1 to 7

Second part
Linciano et al (2021)
Finance for sustainable development
Sustainable Finance Notebook No. 1
CONSOB.
pdf available for download at the following address:
https://www.consob.it/web/area-pubblica/fin-sostenibile

other teaching material will be communicated and, where possible, made available by the teacher during the course.

Methods of Provision

Conventional

Teaching Methods

The teaching activity will be provided through meetings lasting two hours for a total amount of 72 hours. The meetings will mainly consist of lectures by the teacher aimed at achieving the training objectives of the course. The didactic activities can also be carried out through seminars held by experts, group work or laboratory experiences. If the legal-health framework and the University provisions provide for it, the teaching activities and the related receptions / exams can be carried out electronically (totally or partially). For any further information and updates, please refer to the University portal.

Evaluation methods

Verification of learning:

Students will be assessed with a written exam consisting of five open questions with predefined answer spaces and five multiple choice questions with only one correct alternative. The duration of the written test is one hour. All multiple choice questions and two open questions will be aimed at verifying the knowledge acquired during the course and will reflect the topics covered during the teaching and present in the program.
The other three open questions will be structured as follows:
A question aimed at verifying the ability to apply knowledge, or to verify the ability to develop hedging mechanisms against exchange rate risk in import / export companies; develop procurement strategies for raw materials quoted in foreign currencies; manage financial investments in different territorial contexts; establish the degree of consideration of ESG factors.
A question aimed at verifying the autonomy of judgment that will ask the student to decide on the advisability of making financial investments in foreign currencies also with a view to sustainable development or to evaluate the reliability of the various nations on the basis of their macroeconomic conditions in the global economic context.
A question aimed at verifying the ability to learn, which will ask the student to explain the meaning of a short passage containing intermediate and advanced level notions.

Each open question will be assigned one of the following qualitative judgments: no answer, insufficient, sufficient, fair, good and excellent.
The judgment regarding the open questions will also be formulated in the light of the communication skills shown by the student in the answers.
Each multiple choice question will be assigned one of the following attributes: no answer, wrong answer, correct answer.
The teacher will then proceed to an overall evaluation of the test by formulating a final mark expressed out of thirty using the following conversion grid:

fail --> failure to pass the exam
pass --> from 18 to 20
fair --> from 21 to 24
good --> from 25 to 27
very good --> from 28 to 30
excellent --> 30 with honors

Contacts/More Information

For information and educational material
http://erre.unich.it/giulioni
The teacher carries out learning support activities both by receiving on-site and by teleconference by appointment.

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree