Unit Outline

Most businesses operate in a global financial market, and very few facets of financial management are as important as managing exchange rate risk. This unit will provide you with the skills necessary to understand and address some of the multi-faceted issues of international financial management, with a focus on understanding exchange rate behaviour, factors influencing exchange rates, forecasting and managing exchange rate risk. Techniques will be studied and applied from various fields including financial management, macroeconomics, corporate finance and investment theory.

Intended Learning Outcomes

As per the Assessment and Results Policy 1.3, your results will reflect your achievement against specified learning outcomes.

On completion of this unit, you will be able to:


1.	Critically analyse the interaction between the real economy and financial markets.
2.	Critically analyse the role of international conditions on financial markets and multinational corporate behaviour.
3.	Transmit knowledge of finance in oral and written formats.

Requisites


REQUISITE TYPE	REQUISITES
Concurrent Pre-requisite	BEA683
Anti-requisite (mutual excl)	BEA702

Alterations as a result of student feedback

How will I be Assessed?

For more detailed assessment information please see MyLO.

Assessment schedule


ASSESSMENT TASK #	ASSESSMENT TASK NAME	DATE DUE	WEIGHT	LINKS TO INTENDED LEARNING OUTCOMES
Assessment Task 1:	Individual Assignment	Week 7	30 %	LO1, LO2, LO3
Assessment Task 2:	Group Research Report	Week 13	30 %	LO2, LO3
Assessment Task 3:	Online quizzes (x 2)	Refer to Assessment Description	40 %	LO1, LO2

Assessment details

Assessment Task 1: Individual Assignment

Task Description:

Questions based on lectures and chapters read: this assignment will consist of 5-7 questions related to the theory and practice including in chapters/lectures studied in weeks 1 to 6.

Task Length:

Maximum 1500 words + figures and charts

Due Date:

Week 7

Weight:

30 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)


1	Understand the nature and benefits of globalisation.	LO1
2	Appreciate the scope, complexity and importance of international financial markets.	LO1
3	Identify and interpret the relationship between global and domestic macroeconomic variables and short- and long-term exchange rate movements.	LO1
4	Explain the motives and forms of central bank interventions.	LO1
5	Distinguish between the current account, the financial account, and the official reserves account and describe the links among these accounts. Calculate a nation’s balance of payment accounts	LO1
6	Assess basic theories of exchange rate determination and their significance for international capital market equilibria	LO2
7	Identify factors affecting international flows of funds from trade, investment and speculation.	LO2
8	Identify key financing arrangements for facilitating international trade and investment amongst multinationals	LO2
9	Calculate the amount of currency appreciation or depreciation associated with a given exchange rate change	LO2
10	Organise ideas and structure arguments using financial terminology, graphs and data. State assumptions in communicating finance.	LO3

Assessment Task 2: Group Research Report

Task Description:

This is a research report on a current topic to TBA on the second part of the unit. Students may work individually or in groups of up to 4 students. Further details will be posted on MyLO under the Assessment link. Students are required to submit a record of group meetings including details.

Task Length:

Maximum 1500 words + figures, charts and references

Due Date:

Week 13

Weight:

30 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)


1	Assess basic theories of exchange rate determination and their significance for international capital market equilibria.	LO2
2	Identify the basic factors affecting exchange rates in a floating exchange rate system and estimate their influence.	LO2
3	Identify factors affecting international flows of funds from trade, investment and speculation.	LO2
4	Identify key financing arrangements for facilitating international trade and investment amongst multinationals	LO2
5	Describe trends and differences in corporate financing patterns around the world.	LO2
6	Identify the external financing options available to the multinational corporations.	LO2
7	Explain why firms may choose to raise capital overseas	LO2
8	Analyse how basic financial decisions on asset and liability management are made by multinational corporations operating in international financial markets.	LO2
9	Assess the primary functions associated with the use of the basic trade-financing instruments and explain from the standpoint of an exporter the (dis)advantages associated with each means of arranging payment.	LO2
10	Identify key factors associated with developing an overseas financing strategy.	LO2
11	Organise ideas and structure arguments using financial terminology, graphs and data. State assumptions in communicating finance.	LO3

Assessment Task 3: Online quizzes (x 2)

Task Description:

Two online quizzes. Each quiz contains 30 multiple choice questions to be answered in 60 minutes in weeks 4 and 10 (quizzes will be opened for a full week).
Week 4 quiz: Cover topics/lectures/chapters presented from week 1 to 3
Week 10 quiz: Cover topics/lectures/chapters presented from week 5 to 9.

Task Length:

60 minutes

Due Date:

Refer to Assessment Description

Weight:

40 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)


1	Understand the nature and benefits of globalisation.	LO1
2	Appreciate the scope, complexity and importance of international financial markets.	LO1
3	Identify and interpret the relationship between global and domestic macroeconomic variables and short- and long-term exchange rate movements.	LO1
4	Explain the motives and forms of central bank interventions.	LO1
5	Distinguish between the current account, the financialaccount, and the official reserves account and describe the links among these accounts. Calculate a nation’s balance of payment accounts.	LO1
6	Assess basic theories of exchange rate determination and their significance for international capital market equilibria.	LO2
7	Identify the basic factors affecting exchange rates in a floating exchange rate system and estimate their influence.	LO2
8	Calculate the amount of currency appreciation or depreciation associated with a given exchange rate change	LO2
9	Identify factors affecting international flows of funds from trade, investment and speculation.	LO2
10	Identify key financing arrangements for facilitating international trade and investment amongst multinationals	LO2
11	Describe trends and differences in corporate financing patterns around the world.	LO2
12	Identify the external financing options available to the multinational corporations.	LO2
13	Explain why firms may choose to raise capital overseas	LO2
14	Analyse how basic financial decisions on asset and liability management are made by multinational corporations operating in international financial markets.	LO2
15	Assess the primary functions associated with the use of the basic trade-financing instruments and explain from the standpoint of an exporter the (dis)advantages associated with each means of arranging payment.	LO2
16	Identify key factors associated with developing an overseas financing strategy.	LO2

How your final result is determined

To pass this unit, you need to demonstrate your attainment of each of the Intended Learning Outcomes, achieve a final unit grade of 50% or greater, and pass any hurdle tasks.

Submission of assignments

Where practicable, assignments should be submitted to an assignment submission folder in MYLO. You must submit assignments by the due date or receive a penalty (unless an extension of time has been approved by the Unit Coordinator). Students submitting any assignment in hard copy, or because of a practicum finalisation, must attach a student cover sheet and signed declaration for the submission to be accepted for marking.

Academic integrity

Academic integrity is about acting responsibly, honestly, ethically, and collegially when using, producing, and communicating information with other students and staff members.

In written work, you must correctly reference the work of others to maintain academic integrity. To find out the referencing style for this unit, see the assessment information in the MyLO site, or contact your teaching staff. For more detail about Academic Integrity, see Important Guidelines & Support.

Requests for extensions

If you are unable to submit an assessment task by the due date, you should apply for an extension.

A request for an extension should first be discussed with your Unit Coordinator or teaching support team where possible. A request for an extension must be submitted by the assessment due date, except where you can provide evidence it was not possible to do so. Typically, an application for an extension will be supported by documentary evidence: however, where it is not possible for you to provide evidence please contact your Unit Coordinator.

The Unit Coordinator must notify you of the outcome of an extension request within 3 working days of receiving the request.

Late penalties

Assignments submitted after the deadline will receive a late penalty of 5% of the original available mark for each calendar day (or part day) that the assignment is late. Late submissions will not be accepted more than 10 calendar days after the due date, or after assignments have been returned to other students on a scheduled date, whichever occurs first. Further information on Late Penalties can be found on the Assessments and Results Procedure.

Review of results and appeals

You are entitled to ask for a review of the marking and grading of your assessment task if there is an irregularity in the marking standards or an error in the process for determining the outcome of an assessment. Details on how to request a review of a mark for an assignment are outlined in the Review and Appeal of Academic Decisions Procedure.