International Business: Global Capital Markets and Regional Trade Zones

Description

Description: This course has been designed to introduce a variety of aspects of international business. Globalization and growing international trade amongst many different countries have brought new challenges and opportunities for many new economies and established economies.

This course examines international organisation and policies which business need to be aware of and may encounter while trading internationally.

Background: Capital Markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.

Global Capital Markets handles the origination, structuring and underwriting of primary equities, investment-grade and high-yield bonds and syndicated loans. It has three areas:

The Capital Markets & Treasury Solutions (CMTS) group covers and serves the treasury-related needs of corporate, financial institution, sovereign and agency clients. The combined group is responsible for the delivery of the entire suite of financing, risk management and treasury product solutions (including Global Transaction Banking products) to these groups.

Equity Capital Markets (ECM) provides primary equity products including IPOs, follow-on offerings, rights issues, block trades, accelerated book buildings and convertible and exchangeable bonds. Deutsche Bank is the only firm to have book run the four largest IPOs ever: General Motors, Agricultural Bank of China, AIA Group and Industrial and Commercial Bank of China.

The Leveraged Debt Capital Markets (LDCM) franchise combines a premier high yield bond market business with diverse debt financing capabilities. Deutsche Bank is one of the few firms that can price, structure, underwrite and distribute senior, mezzanine and high yield transactions on both sides of the Atlantic.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an international organisation created to foster global international monetary co-operation amongst its member states. It is an organisation with 185 members worldwide, with its headquarters in Washington DC., USA. Dominique Strauss-Kahn is the organisation’s current Managing Director. The IMF was formally established on December 27, 1945, when its first 29 member nations signed the Articles of Agreement.

What are the purposes of the IMF?

The first article in the organisation’s Articles of Agreement outlines the purposes of the IMF. Although the Articles have been amended three times, the first Article has not been altered. Article 1 of the Article of Agreement sets out the IMF’s main responsibilities. These are as follows:

• promoting international monetary cooperation;
• facilitating the expansion and balanced growth of international trade;
• promoting exchange stability;
• assisting in the establishment of a multilateral system of payments; and
• making its resources available to members experiencing balance of payments difficulties.