Monash University Handbook 2010 Undergraduate - Unit

Synopsis

This unit focuses on the topics of international finance and trade. This includes: the importance of 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 speculation in foreign exchange markets; foreign investment; trade barriers.

Objectives

The learning goals associated with this unit are to:

• understand the concept of payments among nations and macroeconomic policies
• understand the operation of foreign exchange markets and alternative exchange rate systems
• understand the multinational corporations in international trade
• understand trade barriers: tariffs and nontariff trade barriers

Assessment

Within semester assessment: 30%
Examination (2 hours): 70%

Chief examiner(s)

Mita Bhattacharya

Contact hours

3 hours per week

Prerequisites

ECF1200

Prohibitions

ECW2721