International Financial Management

Course code GSBS6145Units 10Level 6000Faculty of Business and LawNewcastle Business School

The course examines financial management from an international perspective. It begins with an in-depth examination of international financial markets and instruments, foreign exchange regimes and exchange rate determination and then focuses on investment and financing decisions primarily from the perspective of a multinational firm. A significant part of this course covers methods of evaluating foreign investment proposals, strategies for financing foreign investment and risk management issues for a firm dealing with multiple currencies and various financial and political institutions.

Available in 2014

Newcastle City PrecinctTrimester 2
Previously offered in 2013, 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005
ObjectivesOn completion of this course students will be able to:
1. Apply appropriate formats and technologies to financial communication.
2. Analyse, apply and evaluate information within the global financial environment of foreign exchange to solve problems and make informed decisions.
3. Review the problems of dealing in foreign currency and the advantages and disadvantages of overseas funding
4. Recognise and calculate forward exchange rates given spot rates
5. Identify market conventions on exchange rate quotation and correctly calculate those quotations
6. Demonstrate an integrative understanding of the foreign exchange market and the relationships between interest rates, spot and forward rates and expected inflation rates
7. Comprehend the range of hedging strategies including forward rate hedging and contingent hedging
8. Explain the use of futures and option contracts in hedging foreign exchange exposure
9. Analyse, evaluate and synthesise both quantitative and qualitative financial information to influence problem solving and decision making.
ContentThe content of this course includes but is not limited to the following topics:
1. International business environment
2. International finance and foreign exchange determination
3. Asset-pricing theory at an international level; country and other types of risks
4. Introduction to foreign exchange and derivatives markets
5. Measuring translation and transaction exposure
6. Measuring economic exposure
7. International markets and supranational institutions
8. The cost of capital of a mulinational enterprise
9. Corporate strategy and foreign direct investments; capital budgeting in a multinational
setting
10. Financing foreign trade
11. Short-term financing and multinational financial system
12. Introduction to international portfolio performance evalution
Replacing Course(s)Not applicable.
TransitionNot applicable.
Industrial Experience0
Assumed KnowledgeGSBS6130 Corporate Finance
Modes of DeliveryInternal Mode
Teaching MethodsLecture
Assessment Items
Essays / Written AssignmentsGroup project
Examination: Formal
Presentations - ClassPresentation of Group Project
Quiz - ClassMid trimester test
Contact HoursLecture: for 3 hour(s) per Week for Full Term
Timetables2014 Course Timetables for GSBS6145