6 points, SCA Band 3, 0.125 EFTSL
Undergraduate - Unit
Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.
Faculty
Organisational Unit
Department of Banking and Finance
Chief examiner(s)
Professor Michael Skully
(First semester)
Dr Kym Brown
(Second semester)
Coordinator(s)
Professor Michael Skully
(First semester)
Dr Kym Brown
(Second semester)
Unit guides
Synopsis
When firms operate internationally they are exposed to not only asset risk but also exchange rate risk. We therefore build on an expected base finance knowledge by considering topics such as determination of exchange rates, the international monetary system, international parity conditions, foreign exchange markets, country risk analysis, fund raising via Euromarkets, Eurocurrency and international stock markets. Also, managing economic exposure, international portfolio investment, international trade finance, and international banking.
Outcomes
The learning goals associated with this unit are:
- understand how exchange rates are determined and the related parity theories
- evaluate arbitrage opportunities in exchange rates
- evaluate country risk for multi-national firms
- analyse the extent to which firms are exposed to economic exchange risk, evaluate their systems in place to manage it, and recommend alternative approaches
- appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification
- consider alternative international trade finance options
- examine derivatives related to foreign exchange
- analyse structural issues in the current and likely future of international banking
- apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with international finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF3331.
Assessment
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