FIN3106 International Finance
|Semester 1, 2013 On-campus Toowoomba|
|Faculty or Section :||Faculty of Business and Law|
|School or Department :||School of Accounting, Economics and Finance|
|Version produced :||7 March 2014|
Examiner: Dom Pensiero
Moderator: Frank Elston
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 http://www.usq.edu.au/current-students/support/computing/hardware.
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.
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. The remainder of the course adopts the investment, financing and dividend decisions of firms and applies them to an international setting.
On successful completion of this course, students should be able to:
- demonstrate an understanding of the foundations and characteristics of the international monetary system
- demonstrate an understanding of the function and structure of the foreign exchange market
- apply exchange rate quotations in their various forms to appropriate situations to solve problems facing firms and foreign exchange dealers
- demonstrate an understanding of the determinants of exchange rates
- identify and manage various foreign exchange exposure and, in doing so, demonstrate the appropriate numeracy skills
- demonstrate comprehension of the nature and operation of forwards, futures, options and swap financial markets
- analyse how firms can utilise the global capital market to minimise their cost of capital and maximise availability.
|1.||Introduction: the international monetary system||5.00|
|2.||Introduction to the foreign exchange market||10.00|
|3.||Exchange rate forecasting||15.00|
|4.||Foreign exchange risk exposure and management||15.00|
|5.||Introduction to foreign currency derivatives||20.00|
|7.||Foreign direct investment and cost of capital||20.00|
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (https://bookshop.usq.edu.au/bookweb/subject.cgi?year=2013&sem=01&subject1=FIN3106)
Please contact us for alternative purchase options from USQ Bookshop. (https://bookshop.usq.edu.au/contact/)
Eiteman, DK, Stonehill, AI & Moffett, MH 2010, Multinational business finance, 12th edn, Prentice Hall, Boston, Massachusetts.
Eun, CS & Resnick, BG 2009, International financial management, 5th edn, McGraw-Hill/Irwin, Boston, Massachusetts.
Hull, JC 2010, Fundamentals of futures and options markets, 7th edn, Pearson Education, Harlow, England.
Levi, MD 2009, International finance, 5th edn, Routledge, London.
Shapiro, AC 2010, Multinational financial management, 9th edn, John Wiley & Sons, 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 requirements
|Lectures or Workshops||26.00|
|Tutorials or Workshops||26.00|
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|CMA TEST 1 (MULTIPLE-CHOICE)||5||5||12 Mar 2013||(see note 1)|
|CMA TEST 2 (MULTIPLE-CHOICE)||25||25||22 May 2013|
|2-HOUR EXAMINATION||70||70||End S1||(see note 2)|
- CMA test 1 will be available to download from the Study Desk from the first week of the semester. CMA test 2 will be available to download from the Study Desk approximately three weeks prior to the due date. Students can download the CMA assessment as many times as they wish as each CMA is uniquely linked to your student ID. However, students can only submit their CMA assessment once (on or before the due date). See detailed instructions in your study material.
- The examination is scheduled to be held in the end-of-semester examination period. Students will be advised of the official examination date after the timetable has been finalised.
Important assessment information
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:
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:
If students submit assignments after the due date without prior approval of the examiner, then a penalty of 5% of the total marks gained by the student for the assignment may apply for each working day late up to ten working days at which time a mark of zero may be recorded.
Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
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.
This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the restricted 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). Students are not permitted to take mobile telephones, pagers or other electronic means of communication into the examination room.
Examination period when Deferred/Supplementary examinations will be held:
Any Deferred or Supplementary examinations for this course will be held during the next examination period.
University Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene University policies and practices. These policies can be found at http://policy.usq.edu.au.
Assignments: (i) The due date for an assignment is the date by which a student must submit the assignment to the USQ. (ii) Students must retain a copy of each item submitted for assessment. This must be produced within 24 hours if required by the examiner. (iii) The examiner may grant an extension of the due date of an assignment in extenuating circumstances. All applications for extensions must be accompanied by supporting documentation. In all circumstances no assignments will be accepted two calendar weeks after the due date. The examiner shall consider the statement accompanying a late assignment and decide on the outcome. (iv) The examiner will not accept submission of assignments by facsimile. (v) Assignments are to be submitted with the appropriate assignment cover.
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 http://www.usq.edu.au/library/referencing.
Course weightings: Course weightings of topics should not be interpreted as applying to the number of marks allocated to questions testing those topics in an examination paper. The examination may test material already tested in assignments.
Deferred work: Students who, for medical, family/personal, or employment-related reasons, are unable to complete an assignment or to sit for an examination at the scheduled time may apply to defer an assessment in a course. Such a request must be accompanied by appropriate supporting documentation. One of the following temporary grades may be awarded: IDS (Incomplete - Deferred Examination); IDM (Incomplete Deferred Make-up); IDB (Incomplete - Both Deferred Examination and Deferred Make-up).
Dishonest actions: (i) Any student who is alleged to have performed a dishonest action relating to any assessment in the course will have a course of action taken against him/her as outlined in the academic regulations. (ii) Pieces of assessment should be the work of individual students. Joint pieces of assessment are not permitted unless written approval has been obtained from the examiner. (iii) Dishonest action in relation to assessment includes: copying or attempting to copy the work of others; use of or attempting to use information prohibited from use in that form of assessment; submitting the work of another as your own; consciously committing acts of plagiarism, that is, taking and using another's thoughts or writings as one's own with intent to deceive, which occurs when paragraphs, sentences, a single sentence or significant parts of a sentence which are copied directly, are not enclosed in quotation marks and appropriately footnoted or referenced in the text; direct quotations are not used, but text is paraphrased or summarised, and the source of the material is not acknowledged by footnoting or other reference in the text.
Computer, e-mail and Internet access: 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 http://www.usq.edu.au/current-students/support/computing/hardware.