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International finance deals with the financial operations of business firms in an environment of open and integrated financial markets. Students will examine theoretical finance constructs to enable them to understand key elements relating to arbitrage, financing, hedging, investment and speculation. The basic question that the unit addresses is: Given the macroeconomic and macro-financial environment of the present time, how do business firms operate with respect to their financial operations? This unit concentrates on the macro aspects first with later emphasis on the micro, firm-level aspects of the subject matter.