units

AFC3240

Faculty of Business and Economics

Undergraduate - Unit

This unit entry is for students who completed this unit in 2013 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

print version

6 points, SCA Band 2, 0.125 EFTSL

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LevelUndergraduate
FacultyFaculty of Business and Economics
Organisational UnitDepartment of Accounting and Finance
OfferedClayton First semester 2013 (Day)
Clayton Second semester 2013 (Day)

Synopsis

Topics include the international financial system, institutions and market practices; international finance theorems and their application; Euromarkets; international debt and equity raising; measurement of foreign exchange risk; managing foreign exchange exposure; foreign currency futures, options and swaps, international portfolio investment and capital budgeting and international trade finance.

Outcomes

The learning goals associated with this unit are:

  1. analyse and evaluate the benefits and disadvantages of the various exchange rate systems
  2. critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy
  3. explain the various tools and approaches for firms in hedging transaction exchange exposure, and recommend the most appropriate approach to hedging in a variety of economic and firm-specific circumstances
  4. analyse the extent to which firms are exposed to economic or operating exchange risk, evaluate their systems in place to manage it, and recommend alternative approaches
  5. appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification
  6. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with international finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFC3240.

Assessment

Within semester assessment: 40%
Examination: 60%

Chief examiner(s)

Dr Mohan Nandha (First semester)
Assoc Prof Elaine Hutson (Second semester)

Contact hours

3 hours per week

Prerequisites

Prohibitions