ECX2721

Trade finance and foreign exchange

(BUS)

Dr Mita Bhattacharya

6 points + 3 hours per week + First/second semester + Caulfield, Peninsula + Prerequisite ECX1710

Synopsis: International finance; the balance of payments accounts; the effect of macroeconomic policies on trade balance; foreign exchange markets - spot, forward, futures and options markets; the determination of exchange rates; parity conditions; hedging and speculating in foreign exchange markets and exposure, foreign investment; euromarket; aspects of short-term and medium-term financing and international monetary system.

Assessment: Major report (3000 words): 25% + Tutorial exercises: 15% + Examination (2 hours): 60%