Konstantin Kontor

Konstantin Kontor is Director and Professor of Finance at the American Institute of Business and Economics in Moscow, in 2000-2009 he had been teaching financial strategy at the Stockholm School of Economics in Riga (SSE Riga); Mr Kontor also manages KKP Partners, a Moscow based strategic and investment consulting company that he founded in 1998.

International Finance and Risk Management

Purpose of this Course

The main goal of this course is to provide the students with a basic understanding of the principles of international finance (economics of the international environment, purchasing power parity, and sources of risk in the international financial markets.) We will also discuss the theoretical background on which the practices of operation of the international financial markets are based.

Another goal of the course is to expose the students to the Western standards, approaches, and terminology used in the international capital markets and financial institutions worldwide.

The final goal is to discuss the real methodologies of financial decision-making and financial analysis. The course is heavily case-based. It also covers certain issues from the Western financial history.

Course Materials

Selected chapters from the textbook:

• Alan С. Shapiro. Multinational Financial Management, Allyn and Bacon.
• Notes, articles, and cases from the course package.

Grading

Grading of this course will be based on assignments, examinations and class participation.

Because the course is heavily case-based attendance is mandatory. Failure to attend 40% of classes leads to immediate failure in the course and loss of credit.

During the course the students will have to submit 4 homeworks, 2 midterm case write-ups, and take the final examination. Failure to take the final or to hand in any of the midterm case reports is tantamount to failure in the course.

The course will be graded in accordance with the following schedule:

Course Topics

1. Introduction: The scope of international finance. International monetary systems
2. International parity relationships
3. The nature of international risk exposure
4. International risk exposure – Cases (I)
5. International risk exposure – Cases (II)
6. Reasons for hedging international risk exposure
7. Hedging instruments (I): currency options and futures
8. Hedging instruments (II): currency swaps
9. Capital budgeting in the international environment
10. Cost of capital across countries
11. Multinational taxation and investment decisions — An overview
12. Final exam

You can download description of the course here.