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GSBS6145

International Financial Management

10 Units

The course examines financial management from an international perspective. It begins with an in-depth examination of international financial markets and instruments, foreign exchange regimes and exchange rate determination and then focuses on investment and financing decisions primarily from the perspective of a multinational firm. A significant part of this course covers methods of evaluating foreign investment proposals, strategies for financing foreign investment and risk management issues for a firm dealing with multiple currencies and various financial and political institutions.

Faculty Faculty of Business and Law
School Newcastle Business School
Availability Trimester 2 - 2014 (Newcastle City Precinct)
Objectives

On completion of this course students will be able to:
1. Apply appropriate formats and technologies to financial communication. 2. Analyse, apply and evaluate information within the global financial environment of foreign exchange to solve problems and make informed decisions. 3. Review the problems of dealing in foreign currency and the advantages and disadvantages of overseas funding
4. Recognise and calculate forward exchange rates given spot rates
5. Identify market conventions on exchange rate quotation and correctly calculate those quotations
6. Demonstrate an integrative understanding of the foreign exchange market and the relationships between interest rates, spot and forward rates and expected inflation rates 7. Comprehend the range of hedging strategies including forward rate hedging and contingent hedging
8. Explain the use of futures and option contracts in hedging foreign exchange exposure
9. Analyse, evaluate and synthesise both quantitative and qualitative financial information to influence problem solving and decision making.

Content

The content of this course includes but is not limited to the following topics:

  1. International business environment
  2. International finance and foreign exchange determination
  3. Asset-pricing theory at an international level; country and other types of risks
  4. Introduction to foreign exchange and derivatives markets
  5. Measuring translation and transaction exposure
  6. Measuring economic exposure
  7. International markets and supranational institutions
  8. The cost of capital of a mulinational enterprise
  9. Corporate strategy and foreign direct investments; capital budgeting in a multinational setting
  10. Financing foreign trade
  11. Short-term financing and multinational financial system
  12. Introduction to international portfolio performance evalution
Replacing Course(s) Not applicable.
Transition Not applicable.
Industrial Experience 0
Assumed Knowledge GSBS6130 Corporate Finance
Modes of Delivery Internal Mode
Teaching Methods Lecture
Assessment Items
  • Essays / Written Assignments - Group project
  • Examination: Formal -
  • Presentations - Class - Presentation of Group Project
  • Quiz - Class - Mid trimester test
Contact Hours
  • Lecture: for 3 hour(s) per Week for Full Term
Compulsory Components None listed
Course Materials None listed
Timetable 2014 Course Timetables for GSBS6145

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