Assignment for International finance

In sum, you have to:
• choose a subject from your studies in international finance
• construct a question relevant to the subject
• devise a plan of research
• complete a pro forma and get it signed.
• carry out the plan as in the pro forma.

The project has a maximum length of 1,500 words.

The first point is that the project has run for many years. Language students have in the past produced very successful (first class) projects - you are not being asked to attempt the impossible.

This project differs from many others in that you are not given a subject area or details on how to carry out the project. Instead you are given guidance as to how you might go about these tasks and offered consultation services. How you construct the project is an important part of the project itself.

Avoid the following strategies: "I don't know what to do for my project would you tell me?" - i.e. learned helplessness. This is not consultation. Also, "Can I do what he's doing only in Spain?" This approach is heading for a low mark, no two countries are the same - you must develop your own project for its own reasons.

In sum, you have to:
• choose the subject
• construct a question relevant to the subject
• devise a plan of research
• complete a pro forma and get it signed.
• carry out the plan as in the pro forma.

The end result need not be especially long - by consulting effectively with me you will avoid the main pitfalls

Subject of project:

A technical project will involve some interpretation and manipulation of numbers. Your source is EIU, you will then need to export data to MINITAB (Excel is a poor alternative) and then save the results of the analysis in Word - notes are available.

This is NOT a test of your numerical ability. Projects with regressions can get low marks for badly explained models, poorly analysed results etc; projects with no more than histograms and averages can get high marks for well explained and relevant analysis. The tools you use do not determine your marks.

The project is executed at the terminal, that is why you can complete it in the given timetable. DO NOT "write off" for information.

If you get in a mess with the numbers, consult with me so do not worry. Consultation is part of the exercise. NO MARKS ARE DEDUCTED BECAUSE OF ASSISTANCE. Consultation is a strength not a weakness.

Choice of subject

subject areas: (this will make more sense when you have studied the subject areas!)

Generally, find an area and think small.

Areas chosen by previous projects in rough order of popularity, but not merit, are:

1) PPP theory, variations are choosing different: countries, time periods, indices, lags, periodicity (i.e. monthly quarterly etc), expectations.
2) IFE theory, variations are choosing different: countries, time periods, indices, lags, periodicity (i.e. monthly quarterly etc), expectations.
3) Market efficiency, runs tests.
4) Forward rates (you will have to ask me for the data).
5) Exchange rate variation and correlation tests with each other.
6) Balance of payments and the exchange rate.

Pro Forma This form with my comments must be included as part of your project

It is not possible to "plan as you go along" - you need a clear idea as to what you want to achieve before you begin your project. This "idea" must be as clearly specified as possible. The Pro Forma is intended to help in this process and to enable me to offer guidance. Complete the form as fully as possible - even for those sections you feel are less relevant to your particular choice of topic.

1. Central Question

2. Significance for International Finance

3. How will you test your question? (for non numerical investigations tell me how you are going to search for articles etc and how you are going to use them)

4. What will your test establish?

5. Data required for the Test

6. Source of Data

The write up

The following format is offered as a guide, why not use it? It shows that you have read this far!

Section 1. Introduction - What is being tested/reviewed? Why is the test/review important?

Section 2. Test design: How are you going to carry out your tests - be absolutely crystal clear in this section.

Review design: How are you going to conduct your review?

Section 3. Test: Results and further tests.

Review: Carry out review.

Section 4 Reflections on results and suggestions for further tests.

style

I have said enough about clarity. In addition, try to integrate your computer output (e.g. MINITAB) with your write up as closely as possible (minimize the need to refer to appendices, diagrams, equations etc., output should be part of the text) but place your source data (e.g. daily exchange rate changes for 3 years etc.) in an appendix.

You are not required to write up your notes nor to produce a lengthy tome. You should execute the project within the time allocated for International Finance - see me if this is not proving to be the case.

In conclusion to the project notes

As you may now have gathered an international finance project has been running for many years. Everything recommended here has been thoroughly tried and tested, so follow these instructions, in particular, do not pursue your own idea of a project and hand in "something that you call a project" at submission time, it will not pass. If you follow the instructions, you will gain much higher marks and enjoy the exercise.