This course develops the principles of international finance to gain an understanding of exchange rate dynamics and recent events in both developed and emerging economies. But, the dynamics of foreign exchange markets are not the only distinguishing feature of international financial markets. Institutions differ, and opportunities for portfolio and risk diversification are greater. Topics treated include: foreign exchange microstructure; the determination of nominal exchange rates; pricing of and trading in the spot and the forward foreign exchange; foreign-exchange options and currency swaps; theory and practice of the Euromarket funding and lending; sovereign debt crises; speculative attacks and liquidity crises; globalization.