Write a research project discussing a topic on International Finance
The paper should follow the basic structure:
I. The paper should start with a short introduction/motivation section. Why should anyone care about your topic? Here talk about specifics, current events, politics, etc. (~1 pg). Be sure to establish a clear thesis (argument/focus) and lay out preliminary support you will reference throughout the next section.
– Use sources from reputable publications here (NY Times, Wall Street Journal, Economist, etc)
II. Next, you are expected to review the major contributions on the topic and the current state of the literature, citing at minimum five sources scholarly sources. This should be the bulk of your paper (~3-4 pgs). It is a literature review of your topic. If you have a specific topic (e.g. a specific trade deal, etc) then be sure to generalize your topic for this section. So if you were discussing NAFTA or Brexit, you would want to discuss recent literature on free trade agreements/areas for the literature review. Here you want to discuss general theories on your topic so that you can establish the necessary economic relationships.
– Use scholarly sources here (Journal Articles, Federal Reserve, IMF or NBER Studies, etc)
III. Extension. You just reviewed the literature on a specific subject. Here you should suggest an extension to the current literature (~.5 pgs). What is missing from the literature you reviewed (could be a new data set, case study, research methodology)?
IV. Conclusion. Wrap it up. Tie together the support presented above to call back to main thesis (~ .5 pg).
V. Reference Section that links to in-text citations. Use any citation format you choose (APA, MLA, etc), just be consistent throughout the paper. If you choose to, you can simply footnote within the text and forego this section.
Sample Solution
International finance is a broad field that encompasses the movement of money, goods, and services across borders.
Sample Solution
International finance is a broad field that encompasses the movement of money, goods, and services across borders.
Introduction
International finance is a broad field that encompasses the movement of money, goods, and services across borders. It is a complex and ever-changing field, and it is important to understand the key concepts and issues in order to make informed decisions about international economic policy.
One of the most important concepts in international finance is the exchange rate. The exchange rate is the price of one currency in terms of another. It is a key determinant of the cost of imports and exports, and it can have a significant impact on the overall health of an economy.
Another important concept in international finance is foreign direct investment (FDI). FDI is the investment by a company in another country. It can take many forms, such as the establishment of a new subsidiary, the acquisition of an existing company, or the purchase of a controlling interest in a company. FDI can have a significant impact on the economies of both the home and host countries.
Literature Review
There is a large body of literature on international finance. Some of the most important contributions to this literature include:
- The Mundell-Fleming model is a model of the international monetary system that explains the relationship between exchange rates, interest rates, and the balance of payments.
- The portfolio balance model is a model of international capital flows that explains how investors allocate their portfolios across different assets, including assets denominated in different currencies.
- The gravity model is a model of international trade that explains the volume of trade between countries as a function of their economic size and distance.
Extension
One area where the literature on international finance could be extended is in the study of the impact of financial crises. Financial crises can have a devastating impact on economies, and it is important to understand how they can be prevented and managed.
Another area where the literature could be extended is in the study of the impact of globalization on international finance. Globalization has led to an increase in the cross-border movement of money, goods, and services. This has had a significant impact on the international financial system, and it is important to understand how this impact will continue to evolve in the future.
Conclusion
International finance is a complex and ever-changing field. However, by understanding the key concepts and issues, it is possible to make informed decisions about international economic policy. The literature on international finance is vast, but it is important to focus on the most important contributions. By doing so, it is possible to gain a deeper understanding of this important field.
References
- Obstfeld, M., & Rogoff, K. S. (2012). Foundations of international macroeconomics (7th ed.). Princeton University Press.
- Frankel, J. A., & Rose, A. K. (2002). An estimate of the effect of common currencies on trade and income. The Quarterly Journal of Economics, 117(2), 437-466.
- Gourinchas, P.-O., & Jeanne, O. (2007). The elusive gains from international financial integration. Review of Economic Studies, 74(3), 715-741.
