Units
International Finance
Unit code: EFB312
Contact hours: 3 per week
Credit points: 12
Information about fees and unit costs
This unit examines the theory and practice of international finance, including the mechanics and uses of the spot, forward, swap, futures and options markets in foreign exchange; the relationship between domestic and international capital markets; interest rate and exchange rate determination; risk management of foreign exchange; international trade finance; evaluation of offshore investment.
Availability
| Semester | Available |
|---|---|
| 2012 Semester 1 | Yes |
| 2012 Semester 2 | Yes |
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
The rationale of this unit is to introduce you to the international aspects of financial management and economics.
Aims
The aims of this unit are to:
Objectives
Course Learning Goals (Undergraduate)
The QUT Business School has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:
Have knowledge and skills pertinent to a particular discipline (KS)
1.1 Integrate and apply disciplinary theory and skills to practical situations
1.2 Incorporate the use of technology appropriate to the discipline and context
Be critical thinkers and effective problem solvers (CTA)
2.1 Identify, research and critically analyse information relevant to a business problem or issue, be able to synthesise that information in order to evaluate potential solutions, make recommendations or otherwise effectively address the problem or issue
Be professional communicators in an intercultural context (PC)
3.1 Communicate effectively through written tasks appropriate to varied contexts and audiences
3.2 Communicate effectively through professional oral presentations appropriate to varied contexts and audiences
Be able to work effectively in a Team Environment (TW)
4.1 Demonstrate effective team skills in order to contribute appropriately to the production of a group output
Have a Social and Ethical Understanding (SEU)
5.1 Apply ethical reasoning, standards or codes of practice relevant to the discipline and make decisions that are informed by social and cultural understanding
Unit Objectives
Upon completion of this unit, students will be able to:
1. Identify arbitrage opportunities in the currency markets.
2. Forecast future exchange rate movements.
3. Analyse and quantify foreign exchange risk.
4. Evaluate the return on international investments.
The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.
Content
Students will learn the history of exchange rate regimes and markets, practical skills to calculate and understand current and expected foreign exchange rates, the workings of currency derivatives, the effect of changing exchange rates on firm value, the benefits of international investing, international investment risks, why companies expand internationally and where they get their funding from, and brief introductions to international working capital management and corporate governance. This knowledge will be useful to students in both their personal and professional lives.
Approaches to Teaching and Learning
Each session will consist of approximately two hours of lecture and one hour of tutorials/workshop. The lecture will focus on providing you with core theoretical and conceptual frameworks that are essential in the analysis of international financial issues. The tutorials/workshops will provide you with the opportunity to solve certain practical as well as theoretical questions which will test your understanding of the theories and concepts discussed during the lecture. The tutorials/workshops will also provide you with the opportunity to analyse cases that illustrate the application of international finance theories to the real world.
Resources such as copies of overheads for each lecture topic, tutorial questions and solutions, and assignment details are provided on the unit's Blackboard site.
Assessment
Students will receive feedback in various forms throughout the semester which may include:
Assessment name:
Mid-Semester Examination
Description:
The test covers lectures, tutorials and readings from Weeks 1 to 5 inclusive. Multiple-choice questions may be both qualitative and quantitative.
Length/Duration: 1 hour (plus 15 minutes perusal time)
Formative or Summative: Summative and Formative
Relates to objectives:
Unit objectives: 1, 2 and AOL goals: KS (1.1)
Weight:
40%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Week 7
Assessment name:
End of Semester Examination
Description:
The test covers lectures, tutorials and readings from Weeks 1 to 13 inclusive. Short answer questions may be both qualitative and quantitative.
Length/Duration: 2 hours (plus 15 minutes perusal time)
Formative or Summative: Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), CTA (2.1), PC (3.1)
Weight:
60%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Central Exam Period
Academic Honesty
QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.
A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.
Resource materials
Prescribed Text
Eiteman, D.K., Daly K., Rath S., Stonehill, A.I., and Moffett, M.N. (2011) Multinational Business Finance 2E, Pearson Australian Edition
However, if you already have any of the following textbooks they cover similar material and you may not need to purchase the prescribed textbook above:
Eiteman, D.K., Stonehill, A.I., and Moffett, M.N. (2008) Multinational Business Finance, Pearson International Edition
Madura, J., (2010) International Financial Management 10th edition, South-Western
Shapiro, A., (2005) Foundations of Multinational Financial Management 5th edition, Wiley
Shapiro, A., (2006) Multinational Financial Management 8th edition, Wiley
References
The following are useful references including textbooks, journals and websites. Additional references can also be found at the unit's Blackboard site:
Solomon, J., (2007) Corporate Governance & Accountability 2nd edition, Wiley
Husted, S., and Melvin M., (2006) International Economics 7th edition, Pearson
Moosa, I.M., (2004) International Finance: An Analytical Approach, 2nd edition, Irwin/McGraw-Hill
Other Readings - Periodicals
Students are encouraged to consult periodicals/journals such as Euromoney, Asiamoney and Finance, The Economist, IMF International Capital Markets, IMF Occasional Paper Series, Bank of International Settlements' Annual Reports, Business Review Weekly, Australian Business Monthly, Far Eastern Economic Review, Journal of International Business, Journal of Finance, among others.
Risk assessment statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.
Last modified: 21-May-2012
