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FIN8104 International Financial Management

Semester 2, 2013 External Toowoomba
Units : 1
Faculty or Section : Faculty of Business and Law
School or Department : School of Accounting, Economics and Finance
Version produced : 21 July 2014

Contents on this page

Staffing

Examiner: Taiji Watanabe
Moderator: Frank Elston

Requisites

Pre-requisite: FIN8202

Other requisites

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.

Rationale

Trade is increasingly being facilitated by governments through trade agreements and the abolition of trade barriers. Accordingly multinational businesses today have to deal with international suppliers, customers and financiers. Profitability in these circumstances depends on the understanding and effective management of risks, financial instruments and taxation regimes.

Synopsis

This course covers the financial management, and more specifically, the financial management dimensions of leading a multinational enterprise. It includes international monetary system, exchange rate dynamics and forecasting, discussion of exchange rate risk and exposure management and finally, sources of international finance.

Objectives

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

  1. understand the international monetary system
  2. identify with the functions of the foreign exchange market
  3. work out the mechanism of foreign exchange rate determination
  4. apply the foreign currency derivatives
  5. manage the financial risks through interest rate and currency swaps
  6. identify and manage the foreign exchange risks and exposure
  7. determine the global cost of capital.

Topics

Description Weighting(%)
1. Multinational enterprise: internal dimensions 6.00
2. Multinational enterprise: external environment 4.00
3. The foreign exchange market 14.00
4. Parity conditions and exchange rate forecasting 18.00
5. Foreign exchange futures and options 14.00
6. Interest rate and currency swaps 14.00
7. Foreign exchange exposure management 20.00
8. Financing foreign operations 10.00

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=02&subject1=FIN8104)

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.

Reference materials

Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.
  • Eun, CS & Resnick, BG 2012, International financial management, 6th edn, McGraw-Hill, New York.
  • Madura, J 2010, International financial management, 10th edn, South-Western Cengage Learning, Mason, Ohio.
  • Shapiro, A 2010, Multinational financial management, 9th edn, John Wiley & Sons, New York.

Student workload requirements

Activity Hours
Assessments 34.00
Directed Study 26.00
Private Study 105.00

Assessment details

Description Marks out of Wtg (%) Due Date Notes
CMA TEST 1 0 0 01 Aug 2013
CMA TEST 2 30 30 03 Oct 2013
2-HOUR EXAMINATION 70 70 End S2 (see note 1)

NOTES
  1. 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

  1. Attendance requirements:
    If you are an international student in Australia, you are advised to attend all classes at your campus. For all other students, there are no attendance requirements for this course. However, it is the students' responsibility 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.

  2. 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.)

  3. 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.

  4. 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.

  5. 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.

  6. Examination information:
    This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the examination for this course are:
    1. writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination)
    2. 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.

  7. 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.

  8. 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.

Assessment notes

  1. Assignments:
    1. The due date for an assignment is the date by which a student must submit the assignment to the USQ.
    2. Students must retain a copy of each assignment submitted for assessment. This must be produced within 24 hours if required by the examiner.
    3. If students submit assignments after the due date and wish to claim extenuating circumstances then they shall provide validated documentary evidence with the assignment, explaining the circumstances. The examiner shall consider the statement accompanying a late assignment and decide on the outcome.
    4. Assignments are to be submitted with the appropriate assignment cover.


  2. 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.

  3. Course weightings:
    Course weightings of topics should not be interpreted as applying to the number of marks allocated to questions testing those topics in the final examination paper. The final examination may test material already tested in assignments.

Other requirements

  1. 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.