Course Title: International Finance
Part A: Course Overview
Course Title: International Finance
Credit Points: 12
625H Economics, Finance & Marketing
|Sem 1 2006,
Sem 1 2007,
Sem 1 2008,
Sem 1 2009,
Sem 1 2010,
Sem 1 2011,
Sem 1 2012,
Sem 1 2013,
Sem 1 2014,
Sem 2 2006,
Sem 2 2007,
Sem 2 2008,
Sem 2 2009,
Sem 2 2010,
Sem 2 2011,
Sem 2 2012,
Sem 2 2013,
Sem 2 2014,
Course Coordinator: Dr Monica Tan
Course Coordinator Phone: +61 3 9925 5880
Course Coordinator Email:firstname.lastname@example.org
Pre-requisite Courses and Assumed Knowledge and Capabilities
Corporate Finance [BAFI1059 or equivalent offering code]
This course introduces the student to international aspects of finance. The international economy is playing an ever increasing role in finance and students need to be aware of the threats and opportunities of this development. International finance differs from ‘domestic’ finance in tow important regards. First, the absence of a common currency for transactions and second, the pricing of capital assets may be substantially different in the global economy. This course, accordingly, focuses on exchange rates and their different determinants and also the implications of capital market segmentation.
This course includes the following topic areas –
· Introduction to International Finance
· Corporate Governance around the World
· The International Monetary System
· Balance of Payments
· The Market for Foreign Exchange
· International Parity Relationships and Forecasting Foreign Exchange Rates
· Foreign Exchange Exposure
· International Portfolio Investment
· Foreign Direct Investments
· Multinational Capital Budgeting
· Multinational Tax Management
If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.
Objectives/Learning Outcomes/Capability Development
This course will help you develop your ability to:
• Understand why it is important to study international finance.
• Distinguish international finance from domestic finance.
• Illustrate the institutional framework within which:
- International payments are made.
- The movement of capital is accommodated.
• Discover the balance of payments, how it is constructed and how balance of payments data may be interpreted. Analyse the institutional framework within which exchange rates are determined. • Explain key international parity relationships, such as interest rate parity and purchasing power parity, and approaches to exchange rate forecasting.
• Explain why investors diversify their portfolios internationally and evaluate how much investors can gain from international diversification.
• Examine the effects of fluctuating exchange rates on international portfolio investments.
• Analyse international capital budgeting and taxation management.
• Determine various issues associated with foreign direct investments by MNCs, which play a key role in shaping the nature of the emerging global economy.
Overview of Learning Activities
To achieve the objectives listed above this course requires you to participate in various learning activities. These activities comprise the following:
• attendance, participation and notetaking during scheduled lectures
• reading of and notetaking from prescribed and recommended text books and other references
• optional consultation with academic staff
• completion of assessment tasks
Overview of Learning Resources
The resources includes set of Class Notes and Prescribed Text. Course materials are available through the Blackboard via MyRMIT. A range of online resources are available through RMIT library.
Periodicals - Asian Wall Street Journal, The Pacific Basin Finance Journal, Applied Financial Economics, The Economist, The Far Eastern Review, Time Magazine.
Overview of Assessment
Assessment tasks for this course will assist you to achieve the learning outcomes and capabilities stated above.
These tasks may include, but not limited to assignments, tests, presentations or examination.
Formative feedback will be provided throughout the semester.