Course Title: International Finance

Part A: Course Overview

Course Title: International Finance

Credit Points: 12


Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

BAFI1075

City Campus

Postgraduate

625H Economics, Finance & Marketing

Face-to-Face

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,
Spring2008,
Spring2011,
Spring2013

Course Coordinator: Dr Monica Tan

Course Coordinator Phone: +61 3 9925 5880

Course Coordinator Email:monica.tan@rmit.edu.au


Pre-requisite Courses and Assumed Knowledge and Capabilities

Corporate Finance [BAFI1059 or equivalent offering code]


Course Description

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.

Recommended Reading:
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.