AFW2341 - International financial management

Offered

Gippsland Second semester 2009 (Off-campus)
Sunway Second semester 2009 (Day)
Peninsula Second semester 2009 (Day)

Synopsis

Topics covered include multinational firms and globalisation; foreign direct investment; political risk; foreign exchange markets; currency derivatives (currency options and forward contracts); measuring and managing transaction exposure; cost of capital and capital structure for multinational firms; fundamentals of capital budgeting; international capital and exchange rate effects; international cash management; transfer pricing and international tax strategies.

Objectives

The learning goals associated with this unit are to:

• discuss the international financial environment and the importance of foreign exchange risk management
• discuss important financial management issues and their application to financial management of multinational firms
• discuss foreign exchange market mechanisms and explain how markets can be used to hedge foreign currency transaction exposure
• apply capital budgeting techniques in the context of a multinational firm
• apply critical thinking, problem solving and presentation skills to individual activities dealing with international financial management.

Assessment

Within semester assessment: 30%
Examination (3 hours): 70%

Contact hours

3 hours per week

Prohibitions

AFC3240