FIN8104 International Financial Management
|Semester 2, 2018 Online|
|Short Description:||International Financial Mgt|
|Faculty or Section :||Faculty of Business, Education, Law and Arts|
|School or Department :||School of Commerce|
|Student contribution band :||Band 3|
|ASCED code :||081101 - Banking and Finance|
|Grading basis :||Graded|
Examiner: Taiji Watanabe
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.
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.
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.
On successful completion of this course, students should be able to:
- understand the international monetary system
- identify with the functions of the foreign exchange market
- work out the mechanism of foreign exchange rate determination
- apply the foreign currency derivatives
- manage the financial risks through interest rate and currency swaps
- identify and manage the foreign exchange risks and exposure
- determine the global cost of capital.
|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://omnia.usq.edu.au/textbooks/?year=2018&sem=02&subject1=FIN8104)
Please contact us for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Eiteman, D, Stonehill, A, & Moffett, M 2016, Multinational business finance, 14th edn, England Pearson Education Limited, Harlow, Essex, United Kingdom.
Eun, CS & Resnick, BG 2017, International financial management, 8th edn, McGraw-Hill, New York.
Madura, J 2017, International financial management, 13th edn, South-Western Cengage Learning, Mason, Ohio.
Shapiro, A 2014, Multinational financial management, 10th edn, John Wiley & Sons, New York.
Student workload expectations
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|QUIZ 1||5||5||24 Aug 2018|
|QUIZ 2||35||35||04 Oct 2018|
|EXAMINATION||60||60||End S2||(see note 1)|
- This is a restricted examination. The total working time for the examination is 2 hours. The examination date will be available via UConnect when the official examination timetable has been released.
Important assessment information
Online: 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.
On-campus: 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:
Students should refer to the Assessment Procedure http://policy.usq.edu.au/documents.php?id=14749PL (point 4.2.4)
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.
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 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).
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.
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.