25421 International Financial Management
UTS: Business: Finance and EconomicsCredit points: 6 cp
Subject level: Undergraduate
Result Type: Grade and marksRequisite(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:
- understand the role and practices of foreign exchange markets and their use in financial management by international businesses
- understand the exchange rate determination and the role of global financial markets
- appreciate the financial risks faced by international businesses and the principles for managing these risks
- 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
Assessment item 1: Assignments (Group)
| Objective(s): | 1-4 |
| Weighting: | 20% |
| Task: | 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. |
Assessment item 2: Mid-Semester Exam(Individual)
| Objective(s): | 1-3 |
| Weighting: | 20% |
| Task: | 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. |
Assessment item 3: Final Examination (Individual)
| Objective(s): | 1-4 |
| Weighting: | 60% |
| Task: | 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. |
Required text(s)
Madura, J. (2008), International Financial Management, 9th edn, Cincinnati Ohio: Thomson South-Western College. (Madura)
Shapiro, A.C. (2006), Multinational Financial Management, 8th edn, New York: John Wiley. (Shapiro)
Indicative references
Buckley, A. (2004). Multinational Finance, 5th Edition, Prentice Hall.
Crum R.L., Brigham, E.F. and Houston, J.F., (2005). Fundamentals of International Finance, 1st Edition, Cincinnati Ohio: Thomson South-Western College.
Eiteman, D.K., Stonehill, A.I. and Moffett, M.H., (2007). Multinational Business Finance, 11th Edition, Pearson-Addison Wesley.
Eun, C.S. and Resnick, B.G. (2007). International Financial Management, 4th Edition, Irwin: McGraw-Hill.
Moosa, I.A. (2004). International Finance, 2nd Edition, Sydney: McGraw Hill.
Sathye, M., Rose, L., Allen, L. and Weston, R. (2006). International Financial Management, Wiley.
Shapiro, A.C. (2006). Foundations of Multinational Financial Management, 5th Edition, John Wiley.
Faculty of Business (2006), Guide to Writing Assignments (available through UTSOnline or at www.business.uts.edu.au/resources/guide.html)
