Faculty of Business: Finance and Economics
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): 25557 Corporate Finance: Theory and Practice
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces the concepts of international finance and the financial management of international businesses. Topics include foreign exchange, global financial markets, foreign exchange risk and its management, and financial decision-making techniques used by international business.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

1. Understand the role and practices of foreign exchange markets and their use in financial management by international businesses
2. Understand the exchange rate determination and the role of global financial markets
3. Appreciate the financial risks faced by international businesses and the principles for managing these risks
4. Use the principal financial management techniques in international business.

Contribution to graduate profile

The subject provides students with a general understanding of the financial management aspects of international business as well as the international financial system. It builds on learning outcomes from accounting, economics, finance, marketing and quantitative methods to provide students with a capability to undertake international finance case studies.

Teaching and learning strategies

A range of strategies will be used to provide students with flexible learning approaches. Printed and electronic learning materials and resources are available to support lecture and tutorial discussions.

Content

• The operations of foreign exchange markets
• General theories of exchange rates determination
• Global financial system and its use by international business
• Techniques and concepts used in international financial management
• Analysis of risk exposures of international business
• Risk management techniques and policies for international business.

Assessment

Assignments (Group)	20%
Assignments will involve detailed analysis of major topics relating to international financial management. Students will gain insight into the economic and political events that impact on international finance, and demonstrate their knowledge of international financial management practices. They assures objectives 1-4.
Mid-Semester Exam(Individual)	20%
The mid-session exam is designed to assess students' understanding of basic theories, techniques and concepts of financial management of an international firm. It addresses objectives 1, 2 and 3.
Final Examination (Individual)	60%
Examination serves to reinforce materials covered in the course. Students will be required to consider the impact of international finance on multinational firms and to demonstrate their understanding of the techniques and global financial policies. It assures objectives 1-4.

Examinations will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment. The assignment will be secured through a combination of updating of assessment tasks across semesters and/or plagiarism detection software.

To pass the subject, students must achieve at least 50% of the final overall grade.

Recommended text(s)

Madura, J. (2008) International Financial Management., 9th Edition, Ohio. Thomson/South Western.

Indicative references

Shapiro, A.C. (2006) Multinational Financial Management. 8th Edition. New York. John Wiley.