International Investment

The International Investment module introduces the learner to the world of foreign exchange and international investment. The module comprises four topics, and commences with a contrast between emerging markets and de- veloped economies. The concepts underlying fixed and floating exchange rates, foreign reserves and the gold standard are outlined to the learner. In- ternational investment and the options available to South African investors wishing to diversify offshore are summarised.

The two tier currency system that South Africa had in place for a number of years, the gradual phasing out of exchange controls in South Africa and the development of the net open forward position are outlined. Factors affect- ing the stability of the balance of payments position are summarised and leads and lags are defined.

The final topic in this module introduces the learner to international off- shore financial centres, money laundering and the requirements of local legislation. Trusts and offshore trusts are introduced and the problems with multi-jurisdiction estates summarised. Finally, different types of offshore mutual funds and taxes payable on foreign investments are listed.

Topics

  • Foreign Exchange & Foreign Markets
  • Investing Offshore
  • Foreign Exchange Control
  • Tax Havens and Trusts