Monash University Handbook 2010 Undergraduate - Unit

Synopsis

This unit focuses on the topics of international finance and trade. This includes the importance of international finance; the balance of payments accounts; the mechanisms for financing international trade; the effect of macroeconomic policies on trade balance; the determination of exchange rates; the operation of foreign exchange
markets and alternative exchange rate systems; foreign investment; foreign exchange risk and operating exposure.

Objectives

The learning goals associated with this unit are to understand and explain the concept of:

• payments among nations and macroeconomic policies to adjust balance of payments disequilibrium
• operation of foreign exchange markets and alternative exchange rate systems
• methods of managing foreign exchange risk and operating exposure
• multinational corporations in international trade and the mechanisms for financing international trade
• roles of Euromarkets, medium and short term international financing.

Assessment

Within semester assessment: 40%
Examination (2 hours): 60%

Contact hours

3 hours per week

Prerequisites

ECW1101

Prohibitions

ECF2721