BFF3231 - International finance

Overview

Multinational corporations are forced to operate in an increasingly competitive and complex global environment. Firms and financial Intermediaries are exposed to international competition and financial managers need to understand macroeconomic and currency risks and how international financial markets function. This unit provides an introduction to macroeconomics in an international context, to multinational enterprise, and financial management. Topics covered include macroeconomic implications of cross border transactions, operation of foreign exchange markets, methods of hedging foreign exchange risks, overseas financing and investment decisions, international working capital management, and international financial markets, banking and treasury.

Offerings

S1-01-CAULFIELD-FLEXIBLE

S2-01-CAULFIELD-FLEXIBLE

Requisites

Prerequisite

Prohibition

Rules

Enrolment Rule

Contacts

Chief Examiner(s)

Dr Kym Brown

Learning outcomes

On successful completion of this unit, you should be able to:

understand and interpret key macroeconomic concepts for Australia and foreign economies

recognise definitional and measurement problems associated with the available finance, corporate, and macroeconomic data, with a particular focus on the open economy dimension to develop basic data fluency skills

analyse and evaluate the benefits and disadvantages of the various exchange rate systems

critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy

analyse the extent to which firms and banks are exposed to foreign exchange risk, evaluate their systems in place to manage it, including the various tools and approaches for firms in hedging foreign exchange exposure in a variety of economic and firm-specific circumstances

appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification

critically appraise emerging issues in finance, such as ethics, socially responsible finance, and the impact of technology, with a particular focus on the international aspects

apply critical thinking and problem solving to individual and/or group activities dealing with international finance and demonstrate the acquisition of a comprehensive understanding of the topics covered by BFF3231.

Teaching approach

Enquiry-based learning

Active learning

Problem-based learning

Assessment

1 - Within semester assessment

2 - Project

3 - Quiz / Test

4 - Demonstration

Scheduled and non-scheduled teaching activities

Seminars

Tutorials

Workload requirements

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Learning resources

Technology resources

Other unit costs

Costs are indicative and subject to change. Electronics, calculators and tools: $100