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Explore how real exchange rates arise from nominal exchange rates and inflation differentials, showing how the dollar and yen move in real terms and affect cross-currency cash flows.
This course covers various topics in international finance. This includes concepts such as real exchange rates, purchasing power parity, hedging, foreign exchange risk, and capital budgeting. The course covers specific hedging activities, such as forwards and futures, and money market hedges. The course further covers multinational corporations, including international transfers within those corporations.