DANIEL ARTHUR LAPRES

Cabinet d'avocats

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INTERNATIONAL FINANCE
 
 
 

COURSE DESCRIPTION

This course is intended for senior undergraduates and masters level students in international business. Its purpose is to introduce participants to the world of international finance including issues of current interest, in particular:
- the trends and issues on international financial markets
- globalization
- electronification of markets
- management of financial crises
- international finance in wartime.

The program consists of lectures, case studies, and exercises.

OUTLINE

Meetings 1 and 2:

The actors of the international financial system (I)

States
- Money creation
- Exchange rate policy
- Trade policy
- Fiscal Policy
- Monetary Policy
- Hortatory policy

International governmental organizations (IGOs)
- International Monetary Fund Group
- World Bank and other development banks
- Organization for Economic Cooperation and Development (OECD)
- Bank for International Settlements
- International Organization of Securities Commissions

Readings:
Understanding the balance of payments, extract from Multinational Financial Management by Shapiro
Supply and Demand Curves Explained
Hong Kong Monetary Authority

Assignment
Review the balance of payments between the United States and China (2003-2022) .
What conclusions do you draw about China’s evolution as an actor of international finance?
What conclusions do you draw about the origins and consequences of the US-China Trade War?

Meeting 3:

The actors of the international financial system (II)

Business entreprises
- Industrial and commercial enterprises
- Financial institutions
- Public

Individuals
- Tourism
- Transfer payments
- Investments

Readings
Exploring Global Expansion: A Study of International Fortune 500 Companies
Fortune Global 500
International banking statistics
McKinsey Global Banking Annual Review
US-EUROPE balance of payments (2003-2022)

Assignments
Review the Conference on China’s Belt and Road initiative (BRI), 2019 . From internet research, update the relevant information since 2019 and write a report on the financial issues that arise in connection with the BRI (internally for China and for other countries, within and outside the BRI).

Refer again to the US-China balance of payments statement (2003-222) . With additional internet research, do you observe financial decoupling between the US and China? What are your own opinions on this subject?

Meeting 4:

Approaches to financial globalization
- Territorial globalization
- Sectoral globalization
- Globalization of risks

Readings
WTO, Developments in trade in financial services
The liberalization of financial markets

Assignment
Using the Bank for International Settlements Consolidated positions on residents of All countries (total) and Cross-border claims, all sectors, all instruments, 2023-Q1, pick one country in Europe and one other country and evaluate and compare the degree of globalization of their financial markets.

Meeting 5

Electronification of financial markets
- Economics of digitization
- Electronification of trading platforms
- Electronification of information disclosure
- Crypto-currencies

Readings:
BIS Electronic finance: a new perspective and challenges, 2001
BIS, Virtual banking and beyond, 2022
Electronic Money and the Future of Central Banks
Droit communautaire afférant aux Systèmes de Négociation Alternatifs
Droit communautaire afférant aux services financiers en ligne
Webliography on internet finance in China
Regulating Crypto (IMF, 2022)
PwC Global Crypto Regulation Report 2023

Assignment
Trace briefly the history since 1949 of any major international exchange, in particular highlighting how it has been integrated with other exchanges; identify its current method of trading (electronic or physical market) and the evolution of its trading capacity and actual trading volumes; identify the number of days of delay between the recording of trades and their settlement.

Meeting 6

Financial crises
- Bubbles
- Economic risks
- Market risks
- Operational risks
- Regulatory risks
- Shadow banking
- Black Swans
- Market crashes
- Crisis resolution

Readings
Tulip Bulb Mania
Asset Bubbles Through History: The 5 Biggest
Stock Market Crash of 1929
Savings and Loans Crisis 1986-89
Stock Market Crash of 1987
Long-term Capital Management
Baring's Bank
La crise financière en Corée
The dotcom Bust
US and global financial crisis 2007-9
Greek Financial cirses in 2010, 2012 and 2015
China August 2015 - News reports and Graphs
History and Overview of Securitization

The Implications of the Financial Reform Act for Foreign Banks, Financial Institutions and Financial Regulators

Assignments
Identify another financial market crash, summarize its causes, its development and its resolution.
Identify the winners and losers from the financial crisis in South Korea in 1997.

Meeting 7:

International finance during wartime
- Extra-territorial effects of financial regulation
- Financial sanctions
- Tax havens
- Money laundering
- Confiscation of enemy property

Readings
Yasmine Budustour and Leen Budustour The doctrine of separate legal personality and its significance in international business
OECD, A Beneficial Ownership Implementation Toolkit
IMF, Tackling Tax Havens
IMF, Piercing the Veil
OECD, Behind the Corporate Veil
iPLeaders, Lifting of Corporate Veil
Yale Law Journal, Confiscation of Enemy Private Property,
Yale Law Journal, Enemy Property
International and Comparative Law Quarterly, Principles of Compensation for Nationalized Property
Lawfare, The Legal Challenges Presented by Seizing Frozen Russian Assets

Assignment:
Evaluate the effectiveness of European Union sanctions against Russia by referring to the Russian balance of payments

Meeting 8 (80 minutes):

Exam (open book, no telephones, no computers)

DANIEL ARTHUR LAPRES

Cabinet d'avocats

contacts
 

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