| Semester 1, 2020 Online | |
| Short Description: | International Finance |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Commerce |
| Student contribution band : | Band 3 |
| ASCED code : | 081101 - Banking and Finance |
| Grading basis : | Graded |
Staffing
Examiner:
Requisites
Pre-requisite: FIN1101
Other requisites
Recommended Pre-requisite: FIN1103.
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at .
Rationale
With the increasing global integration of money and capital markets, an understanding of the foreign exchange environment in which multinational enterprises operate is fundamental to the financial management dimensions of operating such enterprises.
Synopsis
This course has been written with the intention of providing a systematic analysis of a representative range of analytical issues in international finance and investment against the background of global financial markets. The course initially examines the international monetary system and analyses exchange rates, their determinants and their relationship to significant economic factors. Students would be exposed to currency and interest rate derivatives and the numerous hedging strategies that firms can adopt to mitigate currency risk. The remainder of the course adopts the investment, financing and dividend decisions of firms and applies them to an international setting.
Objectives
On successful completion of this course students should be able to:
- synthesise business knowledge, disciplinary concepts, theories, principles and processes to use the foundations and characteristics of the international monetary system and the function and structure of the foreign exchange market in solving real world problems;
- synthesise business knowledge, disciplinary concepts, theories, principles and processes to apply the determinants of exchange rates and use exchange rate quotations in their various forms to appropriate situations to solve problems facing firms and foreign exchange dealers;
- apply business-related knowledge and technical skills to identify and manage various foreign exchange exposure using the appropriate numeracy skills and a comprehension of the nature and operation of forwards, futures, options and swap financial markets;
- think critically, constructively and logically about foreign exchange issues and problems as they relate to real world scenarios and analyse how firms can utilise the global capital market to minimise their cost of capital and maximise availability.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Introduction to International Financial environment and history of International Monetary system | 15.00 |
| 2. | Foreign Exchange Markets and International Parity Theory | 30.00 |
| 3. | Foreign exchange Derivatives and exchange rate forecasting | 30.00 |
| 4. | Foreign exchange exposure | 15.00 |
| 5. | International global capital, equity and debt | 10.00 |
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from (unless otherwise stated). (https://omnia.usq.edu.au/textbooks/?year=2020&sem=01&subject1=FIN3106)
Please for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Eiteman, DK, Stonehill, AI & Moffett, MH 2016, Multinational business finance, 14th edn, Pearson Education, Essex, England (global edition).
Reference materials
Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.
Eun, C.S & Resnick, B.G 2017, International financial management, 8th edn, McGraw-Hill Education, Dubuque, United States of America.
Hull, JC 2017, Fundamentals of futures and options markets, 9th edn, Pearson, Boston, United States of America.
Madura, J, Hoque, A & Krishnamurti, C 2018, International financial management, Asia-Pacific edn, Cengage Learning, South Melbourne, Victoria.
Shapiro, AC 2014, Multinational financial management, 10th edn, Wiley, Hoboken, New Jersey.
Valentine, T, Ford, G, O'Hara, L & Sundmacher, M 2011, Fundamentals of financial markets and institutions in Australia, Pearson, Frenchs Forest, New South Wales.
Student workload expectations
| Activity | Hours |
|---|---|
| Directed 精东传媒app | 39.00 |
| Independent 精东传媒app | 126.00 |
Assessment details
| Description | Marks out of | Wtg (%) | Due Date | Notes |
|---|---|---|---|---|
| QUIZ 1 (MULTIPLE-CHOICE) | 10 | 10 | 18 Mar 2020 | (see note 1) |
| REPORT | 10 | 10 | 23 Apr 2020 | (see note 2) |
| QUIZ 2 (MULTIPLE-CHOICE) | 20 | 20 | 20 May 2020 | |
| TAKE HOME EXAM | 60 | 60 | End S1 | (see note 3) |
Notes
- Quiz 1 and Quiz 2 will be available to download from the 精东传媒app Desk approximately three to four weeks prior to the due date. Students can download the Quiz assessment as many times as they wish as each Quiz is uniquely linked to your student ID. However, students can only submit their Quiz assessment once (on or before the due date). See detailed instructions in your study material.
- A short written report to test students ability to communicate clearly and concisely in presenting relevant knowledge and ideas in the field of international finance to a range of audiences
- This will be a take home exam. Students will be provided further instruction regarding the exam by their examiner via 精东传媒appDesk. The examination date will be available via UConnect when the Alternate Assessment Schedule has been released.
Important assessment information
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Attendance requirements:
Online: There are no attendance requirements for this course. However, it is the students' responsibility to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
On-campus: It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. -
Requirements for students to complete each assessment item satisfactorily:
Due to COVID-19 the requirements for S1 2020 are: To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks for that item.
Requirements after S1, 2020:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.) -
Penalties for late submission of required work:
Students should refer to the Assessment Procedure (point 4.2.4) -
Requirements for student to be awarded a passing grade in the course:
Due to COVID-19 the requirements for S1 2020 are: To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Requirements after S1, 2020:
To be assured of receiving a passing grade a student must obtain at least 50% of the total weighted marks available for the course (i.e. the Primary Hurdle), and have satisfied the Secondary Hurdle (Supervised), i.e. the end of semester examination by achieving at least 40% of the weighted marks available for that assessment item.
Supplementary assessment may be offered where a student has undertaken all of the required summative assessment items and has passed the Primary Hurdle but failed to satisfy the Secondary Hurdle (Supervised), or has satisfied the Secondary Hurdle (Supervised) but failed to achieve a passing Final Grade by 5% or less of the total weighted Marks.
To be awarded a passing grade for a supplementary assessment item (if applicable), a student must achieve at least 50% of the available marks for the supplementary assessment item as per the Assessment Procedure (point 4.4.2). -
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course. -
Examination information:
Due to COVID-19 the requirements for S1 2020 are: An Open Examination is one in which candidates may have access to any printed or written material and a calculator during the examination.
Requirements after S1, 2020:
This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the examination for this course are:- writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination)
- calculators which cannot hold textual information (students must indicate on their examination paper the make and model of any calculator(s) they use during the examination).
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Examination period when Deferred/Supplementary examinations will be held:
Due to COVID-19 the requirements for S1 2020 are: The details regarding deferred/supplementary examinations will be communicated at a later date.
Requirements after S1, 2020:
Any Deferred or Supplementary examinations for this course will be held during the next examination period. -
精东传媒app Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene 精东传媒app policies and practices. These policies can be found at .
Assessment notes
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Referencing in assignments:
Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at .