AFF5140 - International finance

Leader: Dr Ting Yean Tan

Offered

Caulfield Second semester 2007 (Evening)

Synopsis

Theory of international parity conditions, valuation of currency options, theory of interest rate parity, derivation of measurements of the three types of exposure, influences on optimal financial structure and cost of capital, direct foreign investment, political risks, the capital budgeting process, working capital management and trade financing techniques.

Objectives

The learning goals associated with this unit are to:

• develop an understanding of the nature and benefits of globalization and international markets integration
• develop an understanding of the fundamental theories which underpin international finance
• develop an appreciation of the implications of these theories when firms are engaged international operations
• develop analytical skills via understanding the intuition and logic behind each theory and the possible application of the theory
• develop analytical and presentation skills by requiring presentation of a case study analysis.

Assessment

Two assignments (2000-3000 words): 25% each
Examination (3 hours): 50%

Contact hours

3 hours per week, or equivalent