Monash University Handbook 2010 Undergraduate - Unit

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 budgeting and exchange rate effects; international cash management; transfer pricing and international tax strategies.

Objectives

The learning goals associated with this unit are to:

1. discuss the international financial environment and the importance of foreign exchange risk management
2. discuss important financial management issues and their application to financial management of multinational firms
3. discuss foreign exchange market mechanisms and explain how markets can be used to hedge foreign currency transaction exposure
4. apply capital budgeting techniques in the context of a multinational firm
5. apply critical thinking, problem solving and presentation skills to individual activities dealing with international financial management and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFW2341.

Assessment

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

Chief examiner(s)

Jothee Sinnakkannu

Contact hours

3 hours per week

Prohibitions

AFC3240