Credit Points 10

Legacy Code 51211

Coordinator Heath Spong Opens in new window

Description This subject provides a comprehensive analysis and coverage of contemporary international finance by describing the international financial system, institutions and market practices; international finance theorems and their application; Euromarkets; international borrowing, lending and capital sourcing; measurement of foreign exchange risk; managing foreign exchange exposure; foreign currency derivatives, international investment; and globalisation and the MNC.

School Business

Discipline Business And Management

Student Contribution Band HECS Band 4 10cp

Level Postgraduate Coursework Level 7 subject

Restrictions

Students must be enrolled in a postgraduate Business program.

Learning Outcomes

On successful completion of this subject, students should be able to:

1. Analyse and evaluate the benefits and disadvantages of the various exchange rate systems;
2. Evaluate the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy;
3. Apply the various tools and approaches for firms in hedging transaction exchange exposure, and recommend the most appropriate approach to hedging in a variety of economic and firm-specific circumstances;
4. Analyse the extent to which firms are exposed to economic or operating exchange risk, evaluate their systems in place to manage it, and recommend alternative approaches;
5. Analyse the issues and choices that arise with international investment;
6. Apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with international finance issues.

Subject Content

International Monetary System
Parity Conditions in International Markets
The Foreign Exchange Market
Foreign Currency Derivatives and Exposure
The Balance of Payments
International lending, borrowing and sourcing of Capital
International Investment
Risk management techniques
Globalisation and the multinational enterprise
Exchange rate Exposure