Faculty of Business and Economics

print version

This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 3, 0.125 EFTSL

Postgraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.


Business and Economics

Organisational Unit

Department of Economics


Dr Horag Choi



  • First semester 2016 (Day)


This unit focuses on the topics of international finance and trade. This includes the importance of international finance, the determination of exchange rates, foreign investment, parity conditions, hedging and speculation in foreign exchange markets, foreign exchange markets-spot, forward, futures and options markets, the balance of payments accounts and the effect of macroeconomic policies on trade balance.


The learning goals associated with this unit are to:

  1. understand the operation of foreign exchange markets
  2. understand the key factors that influence international financial markets
  3. analyse and evaluate the benefits and disadvantages of the various exchange rate systems
  4. understand the concept of payments among nations and macroeconomic policies
  5. understand and analyse the interactions among the foreign exchange rate, trades and macroeconomic policies.


Within semester assessment: 40%
Examination: 60%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)


Students must be enrolled in course 3842 to undertake this unit.