Units
Finance for International Business
Unit code: EFB240
Contact hours:
Credit points: 12
Information about fees and unit costs
In this unit students analyse the way international operations and performance of business can be put at risk by changing financial and regulatory conditions across borders and determine how best to manage the exposure to this risk. This unit examines the following: the evolution of the international financial system; the foreign exchange market; the types of foreign exchange rate exposures; managing exchange; translation and consolidation risks; assessing foreign direct investment targets; comparing the performance of foreign affiliates; operations exposure to regulatory risk of tax; investment and competition policy changes; country risk assessment and managing country risk exposure.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 1 | Yes |
| 2013 Semester 2 | Yes |
| 2013 Summer | Yes |
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
Doing business internationally increases the range of financial transactions and risks that must be managed within the international firm. Managers making decisions involving international trade and investment, need to be aware of the nature and extent of the risks involved and be knowledgeable of fundamental financial skills used to measure and manage these risks. This unit builds on the skills developed in primary units of the International Business major and provides a firm base for developing financially sustainable international business strategies in later units.
Aims
The aim of this unit is for students to:· understand the evolution of the global financial markets;
· develop awareness of the influence of the global financial environment on the trading and investment operations of internationally exposed firms;
· conduct basic analysis of the influences that macroeconomic variables have on globally traded currencies; and
· assess different types of risk and exposures that firms face when conducting international financial transactions.
Objectives
Learning Outcomes
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 Outcomes
At the successful completion of this unit, students should be able to:
1. Have developed a theoretical framework for analysing financial matters of the international firm;
2. Identify the factors that affect risk and foreign exchange exposure when undertaking international financial transactions;
3. Evaluate the operations of the foreign exchange market and its instruments;
4. Analyse and compare foreign investment opportunities and assess their viability; and
5. Apply technology for assessing foreign exchange impacts on international transactions and settlements.
The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.
Content
This unit covers a variety of topics that deal with a number of issues including: an introduction to the international payments system, the operation of the foreign exchange markets, specific instruments such as the forward and futures market used for payments of financial obligations, country risk analysis and multinational business payment exposure.
Approaches to Teaching and Learning
This unit will be primarily delivered in the format of three hours class contact; a two hour lecture block followed by an hour's tutorial period. This unit is designed to advance the students' level of critical enquiry and to encourage them to participate in critical debate of issues raised through the use of websites drawn from the internet. All lectures and tutorial exercises are posted on the unit's Blackboard site. Instructions for use and access to the Blackboard site are presented in Lecture One.
Tutorials form an integral component of this unit and students are expected to attend and participate. Cooperation and active learning are the key strategies in this unit.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The Unit Coordinator will provide further details regarding CRA during the course of the semester during class and on the unit's Blackboard site.
Assessment
Students will receive feedback in various forms throughout the semester which may include:
Assessment name:
Assignment
Description:
The assignment involves researching recent international financial statistics/events and using methodologies taught in the course to assess the validity of theory at country level.
Length/Duration:1,500 words maximum
Formative or Summative: Formative and Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), (1.2), CTA (2.1), SEU (5.1)
Weight:
30%
Internal or external:
Internal
Group or individual:
Group with Individual Component
Due date:
Week 8
Assessment name:
Tutorial/Workshop
Description:
The tutorial/workshops involves group discussions of individually pre-prepared answers to weekly questions. Students are assessed on attendance and making three individual presentations and postings of answers, assigned in class, to Blackboard over the duration of the semester.
Length/Duration: 12 x 1-hour tutorials + private/group preparation time
Formative or Summative: Formative and Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1), (3.2), TW (4.1), SEU (5.1)
Weight:
20%
Internal or external:
Internal
Group or individual:
Group
Due date:
Weeks 2 to 13
Assessment name:
End of Semester Examination
Description:
The exam tests definitions, financial concepts, and the application of theory to international financing of trade and investment and is drawn from the material covered in lectures and tutorials.
Length/Duration: 2 hours + 10 minutes perusal
Formative or Summative: Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), PC (3.1)
Weight:
50%
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
Eun, Cheol, S. and Bruce G. Resnick (2012) International Financial Management, (6th edn.) McGraw-Hill, New York.
All students are expected to purchase their own copy of the principal text International Financial Management (6th edn.) Readings and assigned work is drawn directly from the text and continual referral to the text is part of this learning strategy.
Additional Resource
Recommended Texts and Useful Reading:
Madura, J. (2012) International Financial Management, (11th Edn.). South-Western, Mason.
Buckley, A. (2004) Multinational Finance (5th edn.). Prentice Hall Financial Times, Harlow.
Carbaugh, R. J. (2011) International Economics, (11th edn.). South-Western, Mason.
Eiteman, K., Stonehill, A.I. and Moffett, M.W. (2010) Multinational Business Finance, (12th edn.). Prentice Hall, Boston.
Krugman, P.R. and Obstfeld, M (2011) International Economics Theory and Policy, (9th edn.). Pearson Education, Boston.
Griffin, R. and Pustay, M. (2010) International Business: A Managerial Perspective (6th edn.). Pearson/Prentice Hall, NJ.
Melvin, M. (2004) International Money and Finance (7th edn.). Pearson/Addison-Wesley, Boston.
Mishkin, F.S. (2010) The Economics of Money, Banking and Financial Markets, (9th edn.), Pearson Education, Boston
Shapiro, A.C. (2005) Foundations of Multinational Financial Management (5th edn.), Wiley, New York.
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: 05-Mar-2013
