Anticipated study time : 7½ – 11½ hours
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 developed economies. The concepts underlying fixed and floating exchange rates, foreign reserves and the gold standard are outlined to the learner. International 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 affecting 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 offshore 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.