The world financial environment has been undergoing an important structural change. After decades of a “rule-based” global financial governance underpinned by rapid globalization in practically all socio-economic segments, in the recent decade we have been witnessing a transformation towards a “deal-based” system accompanied with a clear backlash in some segments of the globalization. The transformation has been accelerated with COVID-19 pandemics, later on with Ukraine war and the second term of the US president, and most recently with the US-Iran war. All these geopolitical developments have changed fundamentally the global financial environment in which businesses operate. 

The course consists of four main parts:  
•    The course starts with introduction of the of the global governance concept and discusses main macro-economic trends and features of the global financial governance established after WW II
       and supported strongly with broad-based globalization. 
•    The course continues with examination of the two main components of the global international financial environment, namely (i) balance of payments (including international investment position),
      and (ii) exchange rates. This introduction is needed for an analysis of the concept and evolution of the international monetary system as well as for a discussion of the global financial governance
       system that is in transformation from a “rule-based” into a “deal-based” system. 
•    The third part of the course is focused on two specific risks in international finance, namely on (i) foreign exchange risk (including forecasting of foreign rates based on international party
      conditions) and on (ii) country risk (including political risk as well as economic and financial risk). 
•    Within the final part of the course, two specific international finance topics will be analysed in some depth. The first one addresses selected forms of international capital flows to emerging
      economies from both, official sources (multilateral financial institutions, official development aid) as well as private sources (selected financial instruments, such as syndicated loans and bonds).
     The second topic deals with issues of particular relevance for two specific country groups – one for the EU / euro-area’s members and another one for emerging economies – both within the
      context of growing geopolitical tensions. Analysis of the EU / euro-area members group will be concentrated on the economic governance of the European monetary area while the discussion
      related to the emerging economies group will be focused on growing external debt servicing problems of many countries within this group and on alternatives for effective restructuring of these
      debts. 

The main objective of the course is to give participants a focused overview of international finance issues at the global level. The course is designed to combine both a practical and theoretical approaches to global finance. Students will be put into positions of a various players in international finance (foreign direct and / or portfolio investor, creditor, government of the recipient country, multilateral financial institution, etc.). Mathematical context of the course will be kept to a minimum, with the main focus being on institutional aspects as well as on practical application.

After the course, participants are expected to understand main international finance concepts, their relationship to other macroeconomic aggregates as well as institutional aspects of international finance and capital flows at global level. More specifically, participants will be able: 

• to understand key concepts in international finance,
• to demonstrate ability to analyse international finance problems and to write issue papers on this subject, and 
• to present ideas on international financial issues in a clear, concise and professional manner

At least 80% course attendance is necessary to pass.

The course will be carried out as a combination of lectures, exercises and individual assignments to be done by the participants. Reading assignments will be assigned to the students for each of the lectures. Students are expected to stay current in their reading assignment preparation before class, to regularly attend class and to participate actively in the class discussions.

 Course implementation

 The course will be implemented as a 6-session module course in the period between 1 and 11 December 2026. Each of the session will consist of 4 school hours with one 30-minutes break. The schedule of the sessions is as follows:

•     Tuesday, 1 December 08:30 – 12:30
•     Wednesday, 2 December 16:00 – 20:00
•     Thursday, 3 December 08:30 – 12:30
•     Wednesday, 9 December 14:00 – 18:00
•     Thursday, 10 December 11:00– 15:00
•     Friday, 11 December 08:30 – 12:30 

The exam is scheduled for 18 December, 9.00 – 10.30. 

Students will be assessed on:

• their knowledge on the content domain of international finance,
• their ability to understand and analyze the issues presented in their during-the course and home assignments, and 
• the quality of the written assignments and responses on the examination questions. 

The final grade will be composed on the following four components:

•        During the class assignments 10 per cent
•         Home assignments                 20 per cent
•         Final Exam                              70 per cent

During the class assignment will be done directly in class

Home assignments will be introduced in the class and will be have to be submitted at the time of the final written exam.

Final exam – in the form of a written “open book” exam – in the duration of about 90 minutes will be composed of between 6 - 8 questions. Most of the questions will of an essay type while 1 or 2 will be aimed at providing quantitative answers. »Open book« exam means that students may use all documents in the »hard copy form« they deem appropriate. Students are NOT allowed to use computers / phones / smart watches (and similar devises) either to consult info / data sources on-line and / or to generate texts with AI assistance.      

 For a positive grade, a student must reach at least 60 per cent (60 out of possible 100 points), of this at least 35 points must be from the final exam.

Though not obligatory for official enrolment into the course, basic understanding of macroeconomic concepts would be desirable.  

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Though not obligatory for official enrolment into the course, basic understanding of macroeconomic concepts would be desirable.  

Lecturer can be contacted via mail: mojmir.mrak@ef.uni-lj.si

A course pack consisting of some of the above texts, presentations and cases will be available before the beginning of the course.