International Financial Management

International Financial Management explains the essential characteristics of financial markets and financial intermediaries. The subject is divided into four parts. In the first part, students learn behavioural corporate finance. The second part provides insight into financial assets, clearing and settlement, and the current regulatory issues in the EU. In the third part, students understand different types of risk, and how they are managed by financial intermediaries. The primary goal of the fourth part is to explain operations of currency and derivative markets, including the most prevalent financial instruments (swap, futures, options).

The subject covers two major topics. The first aim is to introduce the theoretical background of taxation, to reveal the basic relationships of tax forms and taxpayers, and to describe the development of the three main tax types. The second aim is to introduce the principles of national and international taxation, the interconnection between them, and to introduce rules and legislation of taxation (scope of directives) of the European Union. We address the need for state involvement, public finance subsystems, general government revenue, public finance expenditure, and the financing of social systems, including the role of tax as a state revenue in the financing of the budget. In a more detailed discussion of the revenues of the public finances, we provide students with the basic principles of taxation, some fundamental ways of computing the tax liability in the frame of personal income tax, corporate tax, and valueadded tax. This is related to the description of the structure of the taxation procedure, turnover, and tax compliance in the Hungarian tax system and its administration. In the second major topic, students acquire knowledge of the basic system of international taxation and the systems of tax compliance.