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DIPLOMATIC ACADEMY
OF THE RUSSIAN
FOREIGN MINISTRY
INTERNATIONAL ECONOMICS
COURSE SYLLBUS 2017
These outlines are intended to give brief descriptions of module contents.
More detailed outlines and reading lists will be given out at the beginning of each
module. The Module Coordinator or Senior tutor will provide students with more
details on each subject.
NOTE:
ACCORDING TO DIPLOMATIC ACADEMY POLICY ATTENDANCE OF ALL
MODULES IS MANDATORY
Content
1. Transition Economies in the Post-Soviet Area ………………………………….4
2. International Accounting…………………………………………………………6
3. Macroeconomics…………………………………………………………………9
4. GeoEconomics………………………………………………………………….10
5. Strategic Management Decision Making……………………………………….12
6. Institutional Economics…………………………………………………………15
7. Actual problems of the international economic security in the context of
globalization ………………………………………..………………………….16
8. Transnational corporations and International economic organizations as the
instruments of influence on the world economy………………………………..18
9. International Finance……………………………………………………………20
10.International Banking…………………………………………………………...23
11.Russia’s place in the World Economy………………………………………….25
12. Grading system……………………………………………………………….
Transition Economies in the Post-Soviet Area
Module Coordinator: Vladimir Skalkin, PhD email:
[email protected]
Aims and Objectives:
(i) identify the characteristics of capitalism, planned socialism, and market socialism
(ii) assess the performance of the economic systems;
(iii)study leading examples of each system (the United States, the Soviet Union, and
Yugoslavia);
(iv) learn the major tasks of transition from planned or market socialism to capitalism;
(v) study the experience of transition in Russia, China, and central Europe and other regions
gain a better understanding of capitalism.
Course Description:
The field of "transition economies" studies issues faced by countries making the transformation from
central planning as the primary force for allocating resources to market-driven resource allocation.
Many of the issues, of course, have a much larger relevance insofar as questions arise about the
appropriate roles of the state and private sectors, about the analysis of the many institutions governing
economic life, and about the nature of structural change. In addition, the revolution of economic
systems currently underway in Russia, central and eastern Europe, central and South-East Asia, Latin
America, Africa is a unique event in human history and thus of intrinsic interest. Although every
subfield of economics can find interesting applications in transition economies, the transformation
raises completely new and fascinating problems, due to the magnitude and speed of the change
attempted.
In order to provide a background for our in-depth study of the economics of transition, we will first
examine the legacy of the Soviet economic system, which these countries inherited. We then explore
the demise of central planning and the debates about the best practices in transforming socialist
economies. Next, we review the progress of transition in various countries, asking why and how
countries pursued vastly different strategies concerning macroeconomic stabilization, market
liberalization, firm privatization, institutional development, and the establishment of a social safety net.
Finally, with the upcoming EU accession of several transition countries in 2013 and after, we discuss
whether the transition is over in these countries and how we might define, in general, when transition is
complete.
Country Group Presentation:
Each group of students will give a 10 – 12 minute presentation on a different transition country. These
will be spread out over several class periods, probably doing 2-3 per class after the first review. You
should address the following issues:
(a) Why and when the country became socialist, (b) any noteworthy events during the socialist era,
(c) how the economy was transformed during the socialist era, (d) how and when it broke with its
socialist past, (e) significant political events and economic
developments since the beginning of its transition, identifying current issues facing the government and
what projects they are pursuing in conjunction with the international development agencies (World
Bank, EBRD, IMF, etc.). . The research paper should be 15-20 pages, excluding graphs, tables, and
other supporting material. It is a joint effort, and you are responsible for all work which bears your
name. Students will be assigned to groups once everyone has given me a rough idea of their intended
topic and country areas.
Prerequisites:
A good understanding of microeconomic and macroeconomic principles via Economics.
Basic algebra and statistics will also be used throughout the course.
Course Outline and Reading List:
1. Introduction To Transition Economies;
2. History of Transition Economies;
3. Economics of Transition Economies;
4. Doing Business in Transition Economies.
Readings:
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Bornstein, Morris, "The Comparison of Economic Systems" in Morris Bornstein (ed.)
Comparative Economic Systems: Models and Cases, 6th ed. Richard D. Irwin, Inc., 1989.
Cao, Yuan Zheng, Gang Fan, and Wing Thye Woo, "Chinese Economic Reform: Past Successes
and Future Challenges," in Wing Thye Woo, Stephen Parker, and Jeffre D. Sachs (eds)
Economies in Transition. MIT Press. 1997.
Hayek, Friedrich A., "The Use of Knowledge in Society." American Economic Review. XXXV,
no. 4, pp. 519-30, 1945 (reprint).
Laar, Martin, "The Estonian Economic Miracle." Heritage Foundation. 2007.
Leeson, Peter T., and William N. Trumbull, "Comparing Apples: Normalcy, Russia, and the
Remaining Post-Socialist World." Post-Soviet Affairs 22, no. 3 (July-Sept., 2006).
Neuberger, Egon, "Classifying Economic Systems," in Morris Bornstein (ed.) Comparative
Economic Systems: Models and Cases, 6th ed. Richard D. Irwin, Inc., 1989.
Read, Leonard E., "I, Pencil." The Freeman, December, 1958.
Gros, Daniel, and Alfred Steinherr, Economic Transition in Central and Eastern Europe: Planting
the Seeds. Cambridge University Press, 2004.
Chapter 2: The obsession with growth Chapter 3: The job (pp 59-81) Chapter 3: The job (pp. 82102) Chapter 4: Transition: ten years later
International Accounting
Module Co-ordinator: Vladimir Skalkin, PhD
email: [email protected]
Aims and Objectives:
(i) to prepare financial statements for groups of entities, for publication in accordance with
International Accounting Standards (IASs);
(ii) to evaluate accounting practice with particular reference to capital maintenance
theory, asset valuation and disclosure and the expression of economic substance
over legal form;
(iii)to evaluate recent developments under discussion to improve the regulation of financial
reporting;
(iv)to analyze and interpret financial statements in an international context.
Course Description:
This course examines the international dimension of financial reporting and analysis. It
provides students with an in-depth look at the multinational enterprise and the preparation and
presentation of financial statements in different nations. Topics covered include international
corporate taxation, foreign currency translation, financial disclosure, and international accounting
harmonization. One of our basic goals will be to learn how accounting developed in various cultures
by studying the political, economic, and social institutions that influenced the development of
accounting theory and practice in different countries. We will then study some of the major
accounting issues that face companies from different nations attempting to compete in a global
marketplace. We will focus on the progress in harmonizing financial accounting principles around
the world with a special emphasis on the work of the International Accounting Standards Board. We
will evaluate the international standard setting process including the work of the International
Accounting Standards Board (IASB). Selected elements of international standards relating to assets,
liabilities and income measurement are examined. Issues relating to accounting by multinationals are
considered. Finally, a variety of national settings are considered, compared and contrasted with the
IASB's position.
Attendance:
In accordance to DA (Diplomatic Acadeemy) policy:
Class attendance is mandatory. The student’s attendance and participation in class
discussion and other course work is an absolute precondition of receiving credit in the course.
Students are expected to attend each lecture, seminar or class activity on a regular and punctual
basis. Students are not permitted to enter the classroom after class has begun, since his/her entry
disrupts the entire class. Class attendance is taken and excessive absence without written
permission or a documented medical excuse will result in a reduction of grade or failure of the
course.
Ethical Conduct and Examinations:
In accordance to DA policy:
The possession or use of any material or device in or during the taking of an examination is
strictly prohibited unless authorized by the course instructor.
No student shall give or receive assistance in the preparation of any assignment or in the
taking of an examination without the authorization of the course instructor.
No student shall copy or in any way use the exam work of another student in taking an exam.
Students who fail to abide by sections A-C above will automatically receive the grade of F for
the course. Permanent records of all violations are kept in the student’s file. Students who violate
these standards two times will be subject to further discipline, which will include probation, or
suspension from the university as determined appropriate by the Rector, Vice Rector, and Vice Rector
for Academic Affairs and the Dean of the Students. Three accumulated violations will result in
automatic dismissal from the university.
Required Materials:
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Needles, Powers, Mills, Anderson, Principles of Accounting, Boston,
2008,2011 2Choi, Frost, Meek International Accounting, 3rd ed. Prentice Hall,
New Jersey, 1999
A.Melville. International Financial Reporting Standards. FT,Prentice Hall 2011
Good Group International Limited. International Group Illustrative Financial Statements.
Based on International Financial Reporting Standards in issue at 30 June 2006. E&Y, 2006
ACCA F7 Study Texts
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Recommended readings:
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Deloitte IFRS e-learning
http://212.135.140.61/contentMenu.asp7
The Institute Of Chartered Accountants of England and Wales
http://www.icaew.co.uk/library/index.cfm?AUB=TB2I_77005,MNXI_77005#ias1
• International Accounting Standards Board www.iasb.org
• Financial Accounting Standards Board www.fasb.org
• Ernst & Young http://www.ey.com/global/content.nsf/International/Assurance_-_IAS__Tools_and_Resources
• Deloitte & Touche IASplus http://www.iasplus.com/new/about.htm
Macroeconomics
Module Co-ordinator: Vladimir Skalkin, PhD email:
[email protected]
Aims and Objectives:
(i) to explore the important questions of macroeconomics and the main
components of macroeconomics theory;
(ii) to help students to develop the necessary concepts and tools to analyze the
current macroeconomic events and its impact on the business environment and
the economy;
(iii)to enable students to understand and evaluate the effects of various government policies on
the business environment and the economy;
(iv) to encourage students to think critically and creatively when making effective
economic decisions and policy suggestions supported by macroeconomic theories and
analytical and quantitative techniques.
Course Description:
As we live in a currently deglobalizing time interdependent world, understanding of the roles
and behavior of markets, states and institutions, and civil society is vitally important. It is believed
that I Geopolitical Economy (GPE) provides a solid foundation for those who are attempting to
comprehend the above-mentioned roles and behavior, and key regional and global issues that will
affect everyday life of individuals. The GPE is an interdisciplinary academic field within international
relations which draws inputs from international politics, several branches of economics, including
economic theory, political economy, complexity economics, institutionalist, development,
international economics, and economic history. This course aims to familiarize students with the
theories and dynamic linkages among markets, states and institutions, and civil society in the regional
and global context. The course covers major theories, concepts and issues of GPE including,
international institutions, international trade, international finance, international development, and
consequences and controversies of globalization.
Prerequisites:
Introductory knowledge of economics (as taught in the Principles of
Economics courses) will be of great help in understanding this course. The course
will start at a basic level but will progress rapidly, so that the bulk of the analysis
will be conducted at an intermediate to advanced level. The range of topics
covered is also quite extensive. Suggested texts for private study are:
(i)
Principles of Economics by N. Gregory Mankiw
(ii)
Macroeconomics by P. Krugman.
You should cover the rudimentary parts of microeconomic concepts of
supply and demand, price determination, and market clearing, etc, and emphasize
on the macroeconomic concepts presented in Krugman and Mankiw‘s books. In
particular, it would be very useful to review the following concepts: identity vs.
equilibrium condition, nominal vs. real variables, stock vs. flow, and exogenous
vs. endogenous variables.
Reading:
Olivier Blanchard, Macroeconomics,5th edition (updated, European Edition) 2010,
Pearson Education Inc.
GeoEconomics
Module Co-ordinator: Vladimir Skalkin, PhD
email: [email protected]
Aims and Objectives:
(i) to answer what is Geopolitical Economy, stressing the fundamental nature of GPE
and its multidimensional character;
(ii) to outline the liberal perspective on Geopolitical Economy;
(iii) to explore many of the political–philosophical ideas associated with classical mercantilism,
realism, and neo-mercantilism;
(iv) to discuss structuralism which includes the ideas of Marx, Engels, Lenin, Stalin, and
Mao in addition to contemporary thinkers in this analytical framework;
(v) to survey a variety of developments and changes that have occurred in the post-World
War II production;
(vi) to discuss the causes, consequences and solution for global financial imbalances;
(vii)
to focus on contemporary financial crisis and survey the problems.
Course Description:
This part of the course puts an emphasis on topics in the interaction of modern
macroeconomics and financial economics, namely consumption, saving, portfolio choice, credit
market imperfections, asset pricing, and money demand. The course is designed to introduce
important concepts, results, and modeling approaches that can prepare students for cutting-edge
doctoral research in these areas. The reading list that follows is quite extensive, and is intended as a
guide to all students, from those interested in understanding basic concepts to those with a serious
research interest in these topics. When reading articles, you should focus on the big picture rather
than on the details of each paper. You can later revisit details if you decide to pursue a particular
research topic. Studying the main readings is critical. Macroeconomics needs not only to be read but
also to be digested and synthesized. After taking this course, you are expected to understand articles
and reports in the Economist or the Wall Street Journal more clearly.
Pedagogical techniques:
(a) Class room lectures;
(b) In class discussion;
(c) Reading assignments from the Internet, books and journals;
(d) Other assignments and participants’ presentations;
(e) Case studies;
(f) Group Project.
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Required textbook and other course materials:
It is quite difficult to cover the whole spectrum of International Political Economy by a single
volume. But if pressed to select one book, the following could be recommended:
Balaam, D., & Dillman, Bradford (2011). Introduction to International Political Economy
(5 ed.). New Jersey: Pearson Education.
Strategic Management Decision Making
Module Co-ordinator: Vladimir Skalkin, PhD
email: [email protected]
Course Description:
Strategic Management Decision Making Examines the use of management accounting
systems to solve problems and manage activities in an organization. Blending contemporary theory
with practical applications and actual company experiences, the course provides a framework for
understanding management accounting and control systems and how their design and operation
create value for the organization.
Learning Objectives:
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The candidate will understand organizational behavioral concepts and apply strategic
management frameworks to corporate financial and ERM business problems.
The candidate will understand the decision-making process and the lessons learned from the
risk-taking activities and experiences of other organizations. In particular, the candidate will
be able to apply the learning objectives of all the prior sections of the syllabus to the risk
management principles embodied within the case studies explored in this section.
The Candidate will be able to:
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Apply basic accounting concepts used in producing financial statements.
Explain how economic capital can be used as a value measure by financial
institutions.
Compare and contrast MCEV and Solvency II and their uses in risk
management and
Analyze the credit risk exposure of a given contract.
Explain the various forms of credit risk models. Demonstrate the ability to
perform analysis with these models.
Compare and contrast commonly used credit risk metrics.
Compare and contrast various credit risk mitigation strategies, and recommend
a course of action.
Compare and contrast various liquidity risk measures, and recommend a
strategy for managing liquidity risk.
Explain and calculate Credit Value Adjustment.
Explain the impact of Regulation, including Basel II, Basel III, and
Dodd-Frank on Capital requirements.
Explain exposure and regulatory capital as prescribed in these regulations.
Explain ERM principles and frameworks
Describe the best practices and frameworks for ERM processes under various
industry forums and regulatory guidelines and standards.
Explain the principles driving the direction of new regulation and industry
standards in risk governance.
Describe the components of a risk appetite statement.
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Design and develop a risk appetite statement and risk-return strategy.
Apply capital allocation models to a multi-line organization.
Compare and contrast various ERM and Capital Management frameworks
as to their ability to assess value and articulate the risk-return strategy of an
organization.
Evaluate the value-added for an organization by jointly evaluating risk
measurement and capital allocation.
Assess how an ERM process can improve capital efficiency and articulate the
risk-return strategy.
Describe the communication process and explain the strategic importance of
communication to organizations.
Describe the fundamentals of decision making and explain decision-making
styles and influences.
Describe common types and causes of organizational conflict and apply the
elements of a basic negotiation process.
Assess how the behavior of individuals and groups in organizations drives
organizational decisions and performance;
Demonstrate the importance of analyzing the firm’s external environment and
the internal organization.
Define types of business-level strategies and recommend an appropriate
business-level strategy for a given situation.
Explain the impact of competitive dynamics on strategic management.
Critique financial models, assumptions and decisions including the impact of
behavioral finance concepts.
Evaluate the robustness and flexibility of the risk management framework and
recommend approaches for continual improvement in the framework and
processes.
Assess the risk of the status quo alongside any other risky and or risk
management decision.
Resources:
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SDM-100-13: Managerial Accounting for CERAs and FSAs, 2013, by Tim Cardinal
SDM-101-13: Hidden Hedge Fund in Insurers
SDM-102-13: Chapter 24 of Asset/Liability Management of Financial Institutions:
Maximizing Shareholder Value through Risk-Conscious Investing
SDM-103-13: A Market Cost of Capital Approach to Market Value Margins
SDM-104-13: A Comparative Analysis of US and Canadian Solvency
II Capital Adequacy Requirements in Life Insurance
SDM-105-13: The European Insurance CFO Forum Market Consistent Embedded Value
Principles
An ERM Approach to Income Tax Risk, by John Manistre, Risk Management March 2009
Issue 15
Corporate Finance & ERM Advanced Exam: Strategic Decision Making – Complete Fall 2013
SDM-106-13: Chapters 5-6 of Credit Risk Measurement In and Out of the Financial Crisis,
3rd Edition by Saunders and Allen
SDM-107-13: Chapter 17 of Financial Institutions Management: a Risk Management
Approach, 2010 7th edition, by Saunders and Cornett.
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SDM-108-13: Chapters 2 and 3 of Liquidity Risk – Measurement and Management,
Matz and Neu editors.
Corporate Value of Enterprise Risk Management: The Next Step in Business Management,
Segal
 Chapter 6 – Risk Decision Making
 Chapter 7 – Risk Measuring
 Chapter 8 – Risk Governance
SDM-101-13: Oliver Wyman: Hidden Hedge Fund in Insurers
SDM-103-13: A Market Cost of Capital Approach to Market Value Margins
SDM-105-13: The European Insurance CFO Forum Market Consistent Embedded Value
Principles
SDM-109-13: Managing the Invisible: Measuring Risk, Managing Capital, Maximizing Value,
Panning
SDM-110-13: ASB ASOP 46 Risk Evaluation in Enterprise Risk Management
SDM-111-13: Quantitative Risk Management
 Chapter 2.2 (Risk Measurement) background
 Chapter 6.1 (Coherent Measures of Risk)
 Chapter 6.3 (Capital Allocation)
Institutional Economics
Module Co-ordinator: Vladimir Skalkin, PhD
email: [email protected]
Course Description:
Institutional and behavioral economics incorporates insights from other social sciences, such
as psychology and sociology, into economic models, and attempts to explain anomalies that defy
standard economic analysis. Institutional economics is the study of the evolution of economic
organizations, laws, contracts, and customs as part of a historical and continuing process of
economic development. Behavioral economics and institutional economics are naturally treated
together, since so much of the logic and design of economic institutions has to do with complexities
of human behavior. Topics include economic fluctuations and speculation, herd behavior, attitudes
towards risk, money illusion, involuntary unemployment, saving, investment, poverty, identiy,
religion, trust, risk management and social welfare institutions.
Course Requirements: Problem sets, short term paper on one of the topics on the reading list,
take-home final exam of short essay form.
Readings:
Shiller, Robert J., Irrational Exuberance 2nd Edition, 2005 (prepublication draft, 2004)
Actual problems of the international economic security in the context of
globalization
Module Co-ordinator: Professor Ivan V. Surma
email: [email protected]
Aims and Objectives:
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Identify, analyze and predict the state of the economic system of the state on the basis of
macroeconomic indicators from the point of view of economic security;
Have knowledge and to understand the logic of global processes and the development of
world economic system in their condition politics, history and law;
Analyze and take into account the cost-effectiveness of international activities and economic
security in the implementation of all programs and projects.
Course Description:
Theoretical foundations of the conceptual and categorical apparatus used in the field of
economic security in today's global economic environment. Study of the economic security of the
structure, its system maintenance and indicative analysis and forecasting system based on
indicators of threshold values and their transformation into a crisis. Review of major international
and national mechanisms for the maintenance of economic security in a global economy and
training of students the main international and national methods of maintaining and ensuring the
economic security of the world economic globalization space. Practice and especially the use of
the policy of "Beijing Consensus" and the "Washington Consensus". A comprehensive analysis of
the economic security threats and evaluation of potential economic risks and forecasts of the
dynamics of the main threats to economic security in a globalizing world economy. The essence
and basic economic security, structure, threat indicators and thresholds. Indicative system of
economic security. Positive and negative aspects of globalization. Global problems of our time:
the problem of underdevelopment, the problem of the negative effects of globalization, the
problems of food and resources, the demographic problem, a global environmental problem,
global problem of disarmament and conversion. National power of the state. Methodological
problems of assessing the impact of the crisis on the national economy. Features of formation of a
positive vector of development in three main areas: socio-demographic, economic, financial and
innovation. The problem of the development of the country's social guidelines and their respective
political goals. Significant trends in the global world economy, threatening the economic security
of the state, such as the risk of loss of economic independence of the country (such as fuel and
raw material appendage of the world economy); decay and degradation of quality (scientific and
technical) capacity; Food dependence on imports as a result of the destruction of agro-industrial
complex; the decline in the labor force and the quality of human capital; deepening social
differentiation, and others.
Teaching methods:
The module will consist of interactive lectures followed by seminars in a form of casestudy. Typically there will be a 50:50 split between seminar and lecture time. Lecture material
will be presented with the help of power point presentations, of which students receive a copy at
the end of the class (also available on-line). Case studies, demonstration of video with in group
discussion. Seminars will include minimum one case-study.
Self-study involves reading literature sources (including the ones in Internet) and hand-out
material, preparing presentations on a chosen topic, working on case studies individually or in
groups, writing an essay on a chosen topic.
Requirements for students and ways to participate:
Writing essays, discussions on the methodology used, presenting research methods, case
analysis.
Readings:
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ECONOMIC SECURITY – NEW APPROACHES IN THE CONTEXT OF
GLOBALIZATION. URL: http://ceswp.uaic.ro/articles/CESWP2015_VII2_AND.pdf
Kuznetsov, A., Toganova, N. and Gutnik, A. (2010),“Evolution of approaches to economic
security problems in Europe”, Imemo Ran, Moscow, available at: mpra.ub.unimuenchen.de/42798/1/MPRA_paper_42798.pdf (accessed 12 February 2017).
Kahler, M. (2005),“Economic security in an era of globalization”, available at:
http://irps.ucsd.edu/assets/014/6745.pdf (accessed 10 February 2017).
Hough, P. (2008) Understanding Global Security, 2nd ed., Routledge, London. International
Labour Organization (ILO) (2004),Economic Security for a Better World, Geneva, available
at: http://www.socialprotection.org/gimi/gess/RessourcePDF.action;jsessionid=ba5695c9f7bbc9a3a30c5d398728
626619fcdcfb08ee9b6437707cd5e3e60929.e3aTbhuLbNmSe34MchaRahaKch90?ressource.
ressourceId=8670 (accessed 11 February 2017).
Boutin, K. J.D. (2014),“China’s Industrial Development and Regional Economic Security”,
Alfred Deakin Research Institute, available at: www.deakin.edu.au/researchservices/forms/v/7808/wps-44w.pdf (accessed 12 February 2017)
G. Huber, P. Rehm, M. Schlesinger, and R. Valletta. Economic Security at Risk: Findings
from the Economic Security Index, 2010. - http://www.economicsecurityindex.org
The Economic Security Index: A New Measure for Research and Policy Analysis.
Economic Research - http://www.frbsf.org/economic-research/publications/working-papers/
The economic security of Russia: General Course: Textbook, [by red.V.Senchagova]. –
Moscow: Delo, 2005. – 896 p.
Economic security Blog - URL: https://www.ncoa.org/topic/economic-security
Transnational corporations and International economic organizations as the
instruments of influence on the world economy
Module Co-ordinator: Professor Ivan V. Surma
email: [email protected]
Aims and Objectives:
(i) to have knowledge and to understand the logic of corporate governance in transnational
corporations and its role in the management of the corporation and the world economy;
(ii) to identify, analyze and predict the state of the macroeconomic indicators of the world
economic system from the point of view of economic stability transnational corporation;
(iii)to understand and analyze a role of the international economic organisations of system of
the United Nations and informal economic organizations in world economy.
Course Description:
Analyzes of the situation on the international market due to increased activity of
transnational corporations (TNCs), consideration of the causes and consequences of this
activation, as well as its positive and negative consequences for the global economy. Especially
transnational corporations is a combination of centralized management with a certain degree of
independence of its member and located in different countries, legal entities and structural
subdivisions (branches, representative offices, subsidiaries). The main criteria for assessing the
level of transnationalization of corporations and the index of transnationalization. The evolution
of transnational corporations and their impact on the global economy. Competitive advantages of
TNCs and the factors contributing to economic globalization. The positive role of TNCs and the
main threats to the globalization and growth of TNCs. Political and economic importance of
transnational corporations is so great that in the historically foreseeable future they will remain an
important factor in enhancing the impact of the industrialized countries for many regions of the
world. Hence the conclusion that taking care of the conversion of the leading domestic
corporations into transnational become conscious objective of the foreign policy of states seeking
to strengthen its influence in the international scale.
Fundamentals of corporate governance. Corporate governance and its brief history. The
basic system of corporate governance and the relationship between governments. Corporate
Governance Models. Interested parties and their role in corporate governance. Features of
formation of a positive vector of corporate governance. Corporate governance issues in the group
companies. Mergers and acquisitions. Organization for Economic Cooperation and Development
and corporate governance standards. Corporate Governance Code and improving corporate
reputation and image.
A characteristic feature of the modern world economic development is the increasing role
of informal economic organizations, in the frequency of the Davos Economic Forum. The Paris
and London clubs of creditors. International economic organizations of the UN system and other
international economic organizations (IMF, World Bank, European Bank for Reconstruction and
Development, International Finance Corporation) and their role in regulating the world economy.
Teaching methods:
The module will consist of interactive lectures followed by seminars in a form of casestudy. Typically there will be a 50:50 split between seminar and lecture time. Lecture material
will be presented with the help of power point presentations, of which students receive a copy at
the end of the class (also available on-line). Case studies, demonstration of video with in group
discussion. Seminars will include minimum one case-study.
Self-study involves reading literature sources (including the ones in Internet) and hand-out
material, preparing presentations on a chosen topic, working on case studies individually or in
groups, writing an essay on a chosen topic.
Requirements for students and ways to participate:
Writing essays, discussions on the methodology used, presenting research methods, case
analysis.
Readings:
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Marc Goergen. International Corporate Governance. January 2012 by Prentice Hall.
Brian R. Cheffins. The History of Modern US Corporate Governance. December 2011 by
Edward Elgar Publishing Ltd.
Massimo Belcredi, Guido Ferrarini. Boards and Shareholders in European Listed
Companies: Facts, Context and Post-Crisis Reforms. October 2013 by Cambridge University
Press.
Paul Davies, Klaus Hopt, Richard Nowak, Gerard van Solinge. Corporate Boards in Law
and Practice: A Comparative Analysis in Europe. November 2013 by Oxford University
Press.
Green Paper. Corporate Governance in Financial Institutions and Remuneration Policies,
European Commission, Brussels, 2010.
Governance in crisis: A comparative case study of six US Banks, Nestor Advisers Research
Note 0109. London, Nestor and Associates, 2009.
NYSE Listed Company Manual, Corporate Governance Standards,2009.
FSB Principles for Sound Compensation Practices Implementation Standards. Financial
Stability Board (FSB), 2009.
Institutional Shareholder Services. U. S. Postseason Report, September 29, 2011.
Green Paper. The EU Corporate Governance Framework. European Commission, Brussels,
2011.
Morck Randall K. A history of corporate governance around the world: family business
group to professional managers, University of Chicago Press, 2005, p. 662, 663.
Anderson R. Independent Governance: Risk and Assurance, Consultant Report for
the OECD, 2009.
International Finance
Module Coordinator: Boris Loguinov, PhD
email: [email protected]
Aims and Objectives:
(i)
(ii)
to identify the structure of international financial market and its characteristics
to develop an understanding and appreciation of the critical financial issues facing
managers of international firms in financial markets
(iii) to study all forms of international financial operations starting from foreign exchange
deals and finishing by international trade payment methods
(iv) to know how to make the analysis of exchange rates and foreign exchange exposures
including an understanding of forces affecting exchange rates
(v) to discuss how international equities different kinds of debt securities are issued
(vi) to provide an in-depth understanding of the process and techniques used to make
international investment decisions
Course Description:
International Finance deals with the management of finances in a global market. It explains
how the international financial system is organized and how to operate with foreign currency,
international securities, and loans. The global financial system is vast and varied. It consists of many
different types of financial institutions, as well as financial markets in stocks, bonds, loans,
currencies, and derivatives. Central banks, governments, banks, funds, commercial companies,
individuals participate as investors and borrowers buying assets and mobilizing resources globally.
The global financial system is highly interconnected. The global flow of goods, services, and
finance is almost $30 trillion or 40% of global GDP. But how was it measured? To answer this
question, it is necessary to explain the main principles of balance of payments, as well as types of
international financial operations and rules for conducting them.
The foreign exchange market is the most liquid with the volume of $5 billion daily. Like any
other product sold in markets, the price of a currency is determined by the demand for that currency
relative to supply. Economists and investors always tend to forecast the future exchange rates, but
all of numerous theories to predict exchange rates have their own limitations. Anyway, we know the
factors that cause currency supply and demand schedules to change depend on economic conditions
as well as foreign exchange arrangements and convertibility of national currency. Gold does not
back today’s currencies anymore. Each country chooses its own foreign exchange regime. Floating
rate, crawling peg, fixed rate are among them. This course will explain what is necessary to
maintain a fixed exchange rate or floating exchange rate system and what are some of the pros and
cons of each regime. Students must understand it and know how all these national arrangements get
on with each other and how the contemporary international monetary system has evolved. Lectures
on currency topics include practical part. We will discuss major techniques that can be used by
traders to mitigate risks and to hedge foreign exchange exposure. Forward contracts, futures
contracts, options, and swap deals will be the focus of attention.
International securities also have risks, returns, indices, and volatility factors like currencies
and loan markets. The international securities market is composed of several segments with separate
types of financial instruments: debt securities (foreign and eurobonds), equities (often in form of
depositary receipts), commercial papers. Investors or traders who purchase securities from the
issuing company in the primary market can sell them in the secondary market. There are many
different designs for secondary markets. It is structured as a dealer market or an agency market.
International trade financing is observed in classes too. This form of financing is required
especially to get funds to carry out international trade operations. Depending on the types and
attributes of financing, there are five major methods of transactions in international trade:
prepayment, letter of credit, drafts, consignment, and open account. In one of the last lectures, we
will discuss the methods of transactions and finance normally utilized in international trade and
investment operations.
Business Game “International State-Investor Disputes”.
Students are divided into 2 groups: (1) managers of a company or a fund invested abroad, (2)
representatives of authorities of the host country. Each group gives a 20 – 25 minute presentation
based on the research it has conducted previously. At the very beginning the two groups should
choose a dispute on the website of International Center for Settlement of Investment Disputes
(https://icsid.worldbank.org). Making choice on the site be sure the subject of the dispute contains
facts about usage of international securities, cross-boarder loans, or foreign exchange operations.
Students should address the following issues:
a) for the group presenting the company (or the fund): a short history of the company (or
fund), its structure and owners, key financial indicators from the balance sheet, goals of
investment in the host country, losses because of the government decisions
b) for the group presenting the State authorities: key provisions of the national financial
legislation, which state bodies regulate international operations in the financial markets,
instruments the government use in the financial markets, causes of the decisions harmed
the foreign company (or fund).
During the game players try to imagine they are the real participants of the chosen real
dispute, so students should be prepared and find online as much additional information about the
company (or the fund), the host country, national legislation, similar financial deals, and disputes as
it possible. The position of each group should be firm and well-grounded.
The research paper of each group with key ideas is appreciated. It should be 15-20 pages,
excluding graphs, tables, and other supporting material. It is a joint effort, and students are
responsible for all work which bears their names. Students will be assigned to groups according to
their preferences.
Prerequisites
A good understanding of business and macroeconomic principles via Economics. Basic
knowledge in history, math and statistics will also be used throughout the course.
Course Outline and Reading List
1.
2.
3.
4.
5.
6.
7.
8.
Balance Of Payments: Principles, Structure, Analysis;
Evolution of International Monetary System ;
Operations in Foreign Exchange Market;
International Credit Market: Players, Products, Indicators;
Forms of International Settlements;
International Securities and Operations in Global Capital Market;
Strategic Decision-Making in International Financial Markets;
Protection of International Investors.
Readings:









International Finance. © Copyright 2015 by Tutorials Point (I) Pvt. Ltd.
Frederic s. Mishkin. Economics of Money, Banking & Financial Markets, The,
Student Value Edition (10th Edition) (Pearson Series in Economics). Columbia
University. 2013.
Balance of Payments and International Investment Position Statistics. IMF data.
The Annual Report on Exchange Arrangements and Exchange Restrictions. IMF.
2014
IMF Global Financial Stability Report:
http://www.imf.org/external/pubs/ft/gfsr/index.htm
BIS Quarterly Review, December 2016
Links to Central Banks websites: http://www.bis.org/cbanks.htm
The World Bank: www.worldbank.org
International Center for Settlement of Investment Disputes
(https://icsid.worldbank.org)
International Banking
Module Coordinator: Boris Loguinov, PhD
email: [email protected]
Aims and Objectives:
(i) To identify forms of international banking and its characteristics, including offshore
banking;
(ii) To assess the performance of the main national banking systems, comparing quantity and
types; of banks, standards, and requirements to them, the role of shadow banking ;
(iii)To study 2 methods of international banking statistics as it is developed and used by the
Bank; for International Settlements (BIS) ;
(iv) learn how international banks are regulated and supervised;
(v) review the set of international banking operations divided into 2 groups: activity in its own;
interests (carry trade, securities trading, credit default swaps) and serving clients (loans,
deposits, settlements, payments etc.);
(vi) know how to negotiate and conclude an agreement with a foreign bank.
Course Description:
The course examines why banks of one country go abroad and open banking facilities in
other countries or provide cross-border services. International banking includes foreign trade
finance and lending to corporations and governments resident in foreign countries as well as
multinational banking through branches and subsidiaries opened often in more than one country. To
understand and analyse contemporary trends in international banking it is essential to study two
statistical approaches to measuring cross-boarder assets and liabilities. The students will cope well
with the BIS locational and consolidated banking data after theoretical and practical classes.
According to the theory of international business and investment banks establish branches
and other affiliates where they have advantages over local banks and are permitted to operate. So,
future managers of international banks and enterprises or just well-educated international specialists
must know rules and standards of national banking legislations and international agreements like
Basel Accords (Basel 1-3) and GATS (WTO). The regulation of international banks is under review
in this course.
Also, it is necessary to learn the structure of the largest national banking systems (USA, EU,
China, Japan, Switzerland) to understand the place and the role the foreign banks take. The national
banking system represents the system of credit institutions, regulation authorities and additional
entities involved in stabilising banking market and mitigating risks for banks and their customers,
but national banking systems differ substantially. There are different types of banks, dissimilar state
bodies and requirements to regulate banking activity, and finally special economic and financial
conditions shaping environment in which national and foreign banks operate. We will consider these
varieties in details.
Practically international banks are engaged in a wider range of banking operations. They
conclude agreements with their customers in accordance to international law. Loan agreement is the
most complex among them. Both sides, banks and their clients, intend to get benefits, but they
always take risks. Risks specific to each international banking products can be detected, calculated
and managed. We review all kinds of risks in international banking during the classes.
Business Game “How to open a branch (or a subsidiary) of a bank abroad”.
Students are divided into 3 groups: (1) managers of a bank, (2) representatives of authorities
of the host country, (3) experts. Each group will give a 20 – 25 minute presentation based on the
research they do previously. Managers choose a bank (it should be a real bank) and a host country,
they give this information to the other groups.
Students should address the following issues and questions:
c) for the group of the managers: a short history of the bank, its structure, key financial
indicators of the bank, goals for the presence in the country
d) for the group of authorities: key provisions of national banking laws, which state bodies
regulate international banking activity and instruments they use for that
e) for the group of experts: critical information about the bank, key problems of banking
supervision in the host country, banking statistics/
The research paper of each group with key ideas is appreciated. It should be 15-20 pages,
excluding graphs, tables, and other supporting material. It is a joint effort, and you are responsible
for all work which bears your name. Students will be assigned to groups according to their
preferences.
Prerequisites:
A good understanding of microeconomic and macroeconomic principles via Economics.
Basic knowledges in international finance will also be used throughout the course.
Course Outline and Reading List :
1. Characteristics of Multinational Banks and International Development Banks;
2. Forms of International Banking. Offshore Banking;
3. International Banking in Individual Countries: The USA, The EU, China, Japan,
Switzerland, Russia;
4. Operations and Risks Of International Banks.
5. Regulating and Supervising International Banks;
Readings:







Banks As Multinationals (RLE Banking & Finance). Edited by Geoffrey Jones
© 2012 – Routledge
BIS Quarterly Review, December 2016
Bank Regulation and Supervision around the World. World Bank. 2001—2012
Federal Deposit Insurance Corporation. International Banking
Dodd-Frank Wall Street Reform and Consumer Protection Act. July 21, 2010.
Cerutti, E. How banks go abroad: Branches or subsidiaries? / E. Cerutti, G. Dell’Ariccia, M.
Martınez // Journal of Banking & Finance. ― 2007. ― № 31. ― Р. 1669—1692.
Russia’s place in the World Economy
Module Coordinator: Boris Loguinov, PhD
email: [email protected]
Aims and Objectives:
•
•
•
•
•
identify the characteristics of the Russian economy and its external economic relations with
key trade and investment partners nowadays
assess the performance of the Russian market institutions and the financial system,
comparing taxes, state budget, internal and external debts with other countries (developed,
developing and transitional)
study conditions for doing business and investing in Russia, students analyze practical
examples (cases)
learn the major legal acts creating rules and standards for economic activity in Russia
review the set of western sanctions against Russia and the Russian counter-sanctions against
the West, how they hamper and help in the development of the Russian economy.
Course Description:
Russia’s place in the world economy is not as substantial as in the world policy, but it shouldn’t
be underestimated and labelled as “a resource appendage to the West”. Yes, the main export goods of
Russia are crude oil, gas, metals, but at the same time Russian firms produce and sell abroad very
complex peaceful nuclear technology products, unique arms, electrical machinery, IT products etc. The
country has everything to be the first in most global markets: huge territory, almost all kinds of natural
resources, clever and comparatively cheap labor force, capital.
But what is the problem? Why does part of the factors of production leave the market and
Russia remain behind many developed countries having not enough international competitiveness and
management practice?
First let’s have in mind short period for building market economy and market relations after the
collapse of The Soviet Union. Second there is an excessive role of State in economy, which means
numerous check-ups of business, big share of capital of enterprises and banks belonging to the
government. Third Russia has a large shadow sector in economy. In addition, the country has just faced
with external shocks and is trying to adjust its economy to lower oil prices, consequences of
quantitative easing of the largest central banks, sanctions. Add to it internal imbalances in regional
development and imperfect structure of labour market.
In classes, we review these problems and challenges in details as well as the progress of
creating powerful and effective companies in energy, IT sectors, aircraft construction and emerging
middle class which is so important for launching consumer economy. We discuss how the country
succeeds in investment development and integration with its neighbours. Students will see
significance of the country for balancing interests of different players in international economic and
financial organisations (WTO, IMF, G20) and learn many other aspects characterizing Russia’s real
place in the World Economy.
Business Game “Sanctions against Russia: is it possible to use the external restrictions as a
stimulus to the internal economic development?”
Students are divided into 2 groups. Each group will give a 20 – 25 minute presentation based
on the different points of view: possible or impossible to use sanctions as stimuli to development.
Students should address the following issues and questions: (a) when Russia faced with really
sensitive economic sanctions, (b) what they are in details, (c) how the economy can be transformed
using particular external restrictions, (d) significant negative and positive economic events and
developments since the beginning of imposing sanctions, (e) current economic measures of the
Russian government and their consequences for business and households. The research paper of
each group with key ideas is appreciated. It should be 15-20 pages, excluding graphs, tables, and
other supporting material. It is a joint effort, and you are responsible for all work which bears your
name. Students will be assigned to groups according to their preferences and beliefs.
Prerequisites:
A good understanding of microeconomic and macroeconomic principles via Economics.
Basic historical and geographical knowledge will also be used throughout the course.
Course Outline and Reading List:
1. Origins of the Key Problems and Challenges for the Russian Economy Since the Collapse of
the Soviet Union;
2. Fundamentals of the Russian Economic Development at Present;
3. Finance and State Budget, Taxes, Banks, Foreign Exchange and Securities Markets;
4. The Russian Economic Legislation (The Main Provisions of the Civil Code, Tax Code,
Foreign Investment Law, Banking Law and Some Others);
5. External Economic Relations of the Russian Economy (Foreign Trade and Investment,
Migration, Integration and Participation in the Economic Groups and Organisations);
6. Doing Business in Russia.
Readings:
• Russian Federation: Facts and Figures. Ministry of Economic Development of the
Russian Federation
• Core areas of activity of the Russian Federation Government ,
• Implementation of crisis recovery measures and modernization of Russian economy.
Ministry of Economic Development of the Russian Federation
• Federal State Statistics Service of The Russian Federation.
http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/en/main/
• The World Bank. Russia Economic Report. No. 36 I November 2016.
• The IMF Country Report No. 16/229 (Russia), 2016
• For the comparative analysis of the conditions for Doing Business in Russia:
http://www.doingbusiness.org/data/exploreeconomies/russia#trading-across-borders
• https://sputniknews.com/russia/
Grading System
Fail
(max
100
point
s)
ECTS
Satisfactory
0 - 35
36 - 55
Good
Excellent
56-64
65-70
71- 78
79-85
86-100
Well
below the
required
standard.F
ail
Poor
performan
ce overall,
some
evidence
of
learning.
Fail.
Satisfactor
y
performan
ce
Good
performan
ce overall,
but some
weaknesse
s
Good
performan
ce
Very good
performan
ce
Excellent
performan
ce
FX(2)
F(2+)
Е(3)
D(3+)
С(4)
В(4+)
А(5)