Course coordinator
Dr Vanitha Ragunathan
Course overview
- Study period
- Semester 1, 2025 (24/02/2025 - 21/06/2025)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
Extends financial decision-making to the international setting. Problems introduced through exchange rates are considered. Issues such as the determination of cost of capital, benefits of international diversification, the quantification & hedging of economic exposure are addressed.
This course will help students develop an understanding of issues in international finance that are important for investors and managers operating in the global marketplace. We first investigate the factors that might explain exchange rate movements and their impacts on firm's financial decision-making. We then consider strategies to minimise the effects of exchange rate changes on firm value. A range of issues pertaining to the globalisation of capital markets, including international investment, multinational cost of capital and capital structure, multinational capital budgeting and restructuring will also be addressed.ﾠ
Course requirements
Assumed background
Before attempting this course, students are advised that it is important to complete the appropriate prerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by the School of Business, the Faculty of Business, Economics and Law or the University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Students are assumed to have knowledge of basic finance concepts such as cost of capital, capital structure, the basics of portfolio diversification, derivatives etc. It is recommended students have a good understanding of issues covered in Corporate Finance (either through FINM2415 or FINM3411) to do well in FINM3403.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM2401 or 2411 or 2412 or 2415
Incompatible
You can't enrol in this course if you've already completed the following:
FINM7406
Course contact
Course staff
Lecturer
Dr Vanitha Ragunathan
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full name
- Student ID
- Course Code
Aims and outcomes
This course aims to provide you with skills to critically evaluate challenging financial decision-making in international settings including the management of exchange rate risk, determination of cost of capital, and international diversification.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
apply exchange rate techniques to solve exchange rate problems.
LO2.
analyze the determinants of exchange rates.
LO3.
evaluate the impact of exchange rate movements on firm value and apply strategies to minimize the impact of these changes.
LO4.
evaluate the operation of international capital markets and diversification opportunities available in these markets.
LO5.
To undertake, as part of group, in depth examination of real-world problems faced by multi-national firms. Students develop skills needed to be successful member of a dynamic group including the ability to assess unique value of each individual member and accordingly determine team assignments; to solve the assigned task in a collegial and timely fashion to ensure team success.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Exam
|
25% |
11/04/2025 12:00 pm
In-Semester exam will be held during class on Friday (12-2pm). This In-Semester assessment will be administered through Blackboard. |
| Paper/ Report/ Annotation |
Case Study - Assignment
|
25% |
23/05/2025 3:00 pm
Case questions will be made available on Blackboard on 5th May (9 am). The completed report is DUE by Week 12 Friday 23rd May (3 pm). |
| Examination | End of Semester Exam | 50% |
End of Semester Exam Period 7/06/2025 - 21/06/2025 |
Assessment details
In-Semester Exam
- Mode
- Written
- Category
- Examination
- Weight
- 25%
- Due date
11/04/2025 12:00 pm
In-Semester exam will be held during class on Friday (12-2pm). This In-Semester assessment will be administered through Blackboard.
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02
Task description
The exam questions will cover the following three topics:
Topic 1: The Foreign Exchange Market
Topic 2: The International Monetary System and Balance of Payments
Topic 3: International Parity Conditions
The exam will comprise of 20 multiple-choice questions with each question worth 1 mark and TWO calculation questions with each worth 2.5 marks. No part marks are allocated for calculation questions (i.e. they are all-or-nothing).
Further details about the exam will be discussed in class and posted to our course Blackboard site.
AI Statement:
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 90 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Open Book examination |
| Exam platform | Other |
| Invigilation | Not invigilated |
Submission guidelines
The Blackboard exam link will be open from 12 - 2pm. From the time you click on the test, you will have 100 minutes (90 minutes plus 10 minutes of reading time) to answer 20 multiple choice questions and two (2) calculation questions. The link will close at 2pm. To ensure that you have the allocated time of 90 minutes plus 10 minutes, make sure you start the exam before 12:20 pm.
Make sure you sit the test from a location that has internet with GOOD bandwith.
There will be NO lectures or tutorials in the week of the in-semester exam.
Deferral or extension
You may be able to defer this exam.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
Case Study - Assignment
- Team or group-based
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 25%
- Due date
23/05/2025 3:00 pm
Case questions will be made available on Blackboard on 5th May (9 am). The completed report is DUE by Week 12 Friday 23rd May (3 pm).
- Other conditions
- Peer assessment factor.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The case will be used to examine your report writing skills, general finance knowledge, research skills and ability to critically evaluate complex case scenarios. The assessment will take the form of a report to be submitted to clients.
This is a GROUP assignment.
Please note the following:
(1) Each group will comprise of five (5) members. Group sign-on will be done through Blackboard AFTER the census date to minimise potential disruptions to groups.
Initially, students will be given the opportunity to form their own group, so coordinate the sign-on with potential team members. If you are forming a team, it is
important that all intended team members sign-up at the same time as open team slots could be filled by others. We will not remove individuals once they have signed up to a team.
(2) Group sign-on will commence on Monday Week 8 (14th April, 9 am) and the link will be available until Thursday Week 8 (17th April, 3 pm). Students that have not signed up to a team by 3 pm 17th April will be randomly allocated to groups with fewer than five members.
To ensure that all members of group contribute equally to the project, we will use peer evaluation. More information on peer evaluation will be posted closer to the date. Results of peer evaluation could be used to adjust students score in extreme circumstances. One such example of an "extreme circumstance" is where a student has ignored all communication and has contributed nothing to the submitted assignment. In this case, the student will be awarded a score of zero.
AI Statement:
This task has been designed to be challenging, authentic and complex. Whilst students may use AI technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
To be submitted through Blackboard assessment link.
The report should be up to 5 typed pages (12 point font, one and a half line spacing) plus tables and graphs.
Please note:
(1) Cover page, Executive Summary, Tables, Graphs, Appendices will NOT count towards the page limit.
(2) Brevity is a virtue. This assessment should be thought of as report to be presented to a fee-paying client and as such we expect the submission to be both well reasoned and well presented.
(3) While there is no penalty for exceeding the page limit, we will stop reading the submission at the end of page 5 of the report.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
End of Semester Exam
- Mode
- Written
- Category
- Examination
- Weight
- 50%
- Due date
End of Semester Exam Period
7/06/2025 - 21/06/2025
- Learning outcomes
- L01, L02, L03, L04
Task description
The final assessment will be a Centrally scheduled, in-person exam held during the Examination period.
This exam covers all of the material from ALL topics.
It might comprise of some multiple-choice questions and 3-4 short answer and practical questions involving both theory and calculation. Some (or all) short answer/practical questions may have multiple parts.
Further details about the exam will be discussed in class and posted to the course Blackboard site.
Tutorial problems which are mostly past exam questions are a good indicator of how exam questions will be written.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed Book examination - specified written materials permitted |
| Materials | One A4 sheet of handwritten notes, double sided, is permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
1: Exchange Rate Conventions Learning outcomes: L01 |
Week 2 |
Tutorial |
Tutorial - Exchange Rate Conventions Learning outcomes: L01 |
Lecture |
2: Intl Monetary System & Balance of Payments Learning outcomes: L01, L02 |
|
Week 3 |
Tutorial |
Tutorial - Intl Monetary System Intl Monetary System & Balance of Payments Learning outcomes: L01, L02 |
Lecture |
3: International Parity Conditions Learning outcomes: L02 |
|
Week 4 |
Tutorial |
Tutorial - International Parity Conditions Learning outcomes: L02 |
Lecture |
4: Foreign Currency Derivatives Learning outcomes: L03 |
|
Week 5 |
Tutorial |
Tutorials - Foreign Currency Derivatives Learning outcomes: L03 |
Lecture |
5: Measuring & Managing Transaction Exposure Learning outcomes: L03, L05 |
|
Week 6 |
Tutorial |
In-Semester Practice Problems In tutorials in Week 6 we will cover practice problems in preparation for the online In-Semester exam. |
Lecture |
6: Measuring & Managing Economic Exposure Learning outcomes: L03, L05 |
|
Week 7 |
Lecture |
In-Semester Exam The online In-Semester exam will be held during lecture class hours. This assessment will cover Topics (lectures) 1-3 only. NOTE: There will be NO lectures or tutorials in the week the in-semester exam is held. Times for In-Semester consultation will be posted to Blackboard in due course. |
No student involvement (Breaks, information) |
No Tutorials |
|
Week 8 |
Tutorial |
Tutorials: Measuring, Managing Transaction Exposure Good Friday Public Holiday - Friday 18 April 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L03, L05 |
No student involvement (Breaks, information) |
No Lecture - Public Holiday Good Friday Public Holiday - Friday 18 April 2025 |
|
Mid-sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 9 |
Tutorial |
Tutorial - Measuring, Managing Economic Exposure Learning outcomes: L03, L05 |
Lecture |
7: International Cost of Capital Learning outcomes: L04 |
|
Week 10 |
Tutorial |
Tutorial - Cost of Capital for Foreign Investments Labour Day Public Holiday - Monday 5 May 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L04 |
Lecture |
8: International Capital Budgeting Learning outcomes: L01, L04, L05 |
|
Week 11 |
Tutorial |
Tutorial - International Capital Budgeting Learning outcomes: L04, L05 |
Lecture |
9: Raising Global Capital & Corporate Governance Learning outcomes: L04 |
|
Week 12 |
Tutorial |
Tutorial - Raising Global Capital & Corp Governance Learning outcomes: L04 |
Lecture |
10: International Portfolio Theory and Diversification Learning outcomes: L04, L05 |
|
Week 13 |
Tutorial |
Tutorial - Portfolio Theory and Diversification Intl Portfolio Theory and Diversification Learning outcomes: L02, L04, L05 |
Lecture |
11: Course Review Learning outcomes: L01, L02, L03, L04 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.