International Finance

Subject Code:

ECO800

Subject Aim:

The aim of this subject is to offer you a highly developed understanding of the analytical tools required by a financial manager to operate in the international business environment. This includes developing an advanced knowledge of foreign exchange markets and their operation; the relationships between exchange rates, interest rates, and price levels; the management of currency risk; and how multinational corporations make financing and investment decisions abroad, bank and trade; offshore financial centres, money laundering across borders; and current issues in global banking and the phenomenon of financialisation.

Learning Outcomes:

1. Analyse the challenges in managing an international business in the context of globalisation
2. Explain the market practices and trading conventions of foreign exchange markets and understand the theories underpinning foreign exchange rate determination.
3. Apply advanced knowledge of financial derivatives to manage foreign currency risk
4. Critically assess the roles and functions of banks in international trade and finance
5. Evaluate foreign direct investment decisions, and the role of offshore financial centres in the global flow of finance and as conduits for investment in foreign markets
6. Apply advanced knowledge of current issues in global banking and financialisation in managing the international finance of a business

Student Assessment:

Exams will take place in weeks 15 & 16. Please refer to the official Exam Timetable for further information.

The final exam will be closed-book and held in standard examination conditions in the ICMS official exam period. The duration of the exam will be two (2) hours PLUS 10 minutes of reading time. The exam is worth 40%. Detailed information about the exam will be provided in Week 14 tutorial session and also posted on the subject Moodle site.