Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Postgraduate Coursework
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
The course extends financial decision-making to the international setting. Topics include the foreign exchange market, predicting exchange rate movements, hedging exposures with various derivative and other alternatives, the challenges of raising funds internationally and the process and documents of international trade. The course makes extensive use of case studies and there is an expectation that students will make recommendations to real life problems and justify their decisions. This is a challenging course with a significant theory content which requires seminar attendance and participation in addition to the appropriate independent study and thought to be successful.
This subject introduces and extends financial decision making in an international context. We will introduce exchange rates, observe the impacts and investigate the factors that might explain exchange rate movements. Additionally, we consider strategies to minimise the effects of exchange rate changes. We cover a range of issues pertaining to the globalisation of capital markets, including international investment, multinational cost of capital and capital structure and multinational capital budgeting.
Course requirements
Assumed background
Students are assumed to have a thorough knowledge of basic finance, for example, have completed FINM7401
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM7065 or 7401 or 7805
Incompatible
You can't enrol in this course if you've already completed the following:
FINM3403
Restrictions
Quota: Minimum of 15 enrolments
Course contact
Course staff
Lecturer
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 build on your knowledge of finance by expanding the coverage to firms that operate in the international market.ﾠ
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Demonstrate a knowledge of the international monetary system and an ability to calculate and interpret values to various exchange rate problems
LO2.
Outline and apply theories of international finance which are used by firms to forecast exchange rates
LO3.
Explain foreign exchange exposure and compare instruments and techniques available to manage it
LO4.
Apply theories of international finance to case studies so as to analyse and evaluate and then articulate solutions to real world problems
LO5.
Compare costs and sources of capital of international and domestic firms
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Exam (Online)
|
30% |
Week 7, Thu
Online during Lecture time |
| Paper/ Report/ Annotation, Project |
Project Assignment
|
20% |
10/10/2024 1:00 pm |
| Examination |
Final Assessment (In-person)
|
50% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
In-Semester Exam (Online)
- Online
- Mode
- Written
- Category
- Examination
- Weight
- 30%
- Due date
Week 7, Thu
Online during Lecture time
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02
Task description
The test will comprise multiple-choice questions, short answers, and problem solving questions.
We will hold the online mid-term exam in Week 7 during the usual lecture time. You can take the exam from any location, but we highly recommend choosing a place with a stable internet connection to ensure a smooth experience.
A 15-minute submission period is available for submitting your examination. If your examination is submitted after this period late penalties will be applied unless you can demonstrate that there were problems with the system and/or process that were beyond your control.
AI Statement:
This assessment task is to be completed online. 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 | 90 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Open Book examination |
| Exam platform | Learn.UQ |
| Invigilation | Not invigilated |
Submission guidelines
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.
Project Assignment
- Online
- Mode
- Written
- Category
- Paper/ Report/ Annotation, Project
- Weight
- 20%
- Due date
10/10/2024 1:00 pm
- Learning outcomes
- L01, L02, L03, L04
Task description
This is an individual assignment.
The project requires students to make various international financial decisions. Examples include maximizing portfolio returns, discussing issues related to cryptocurrency, etc.
Students need to justify the decisions in a written report with supporting quantitative details. The report is to be 2,500 words (+/- 10%).
The supporting details include excel computation and the underlying theories.
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.
Submission guidelines
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.
Final Assessment (In-person)
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 50%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The Final Exam consists of
- Short-answer questions,
- Problem-solving questions,
- Essay questions.
Further details will be discussed in class.
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 or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials 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.
Additional learning resources information
Sustainable Development Goals
This course integrates the following Sustainable Development Goals (SDGs) throughout course learning activities.
Goal 8: Decent work and economic growth
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 |
Topic 1: Course Intro and The Intl Monetary System Globalisation; four major types of exchange rate mechanims (floating vs. fixed); bitcoin Learning outcomes: L01 |
Week 2 |
Tutorial |
Course Introduction and The Intl Monetary Learning outcomes: L01 |
Lecture |
Topic 2: The Foreign Exchange Market Characteristics of foreign exchange (forex)markets; terminology and calculations for spot and forward forex markets; triangular arbitrage Learning outcomes: L01 |
|
Week 3 |
Tutorial |
The Foreign Exchange (Forex) Market Learning outcomes: L01 |
Lecture |
Topic 3: International Parity Conditions Five parity conditions:
Learning outcomes: L01, L02 |
|
Week 4 |
Tutorial |
International Parity Conditions Royal Queensland Show Public Holiday - Wednesday 14 Aug 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L01, L02 |
Lecture |
Topic 4: Balance of Payments (BOP) Determinants of Exchange Rates II: Five accounts:
Learning outcomes: L01, L02 |
|
Week 5 |
Tutorial |
Balance of Payments Learning outcomes: L01, L02 |
Lecture |
Topic 5: Foreign Currency Derivatives
Learning outcomes: L01, L03 |
|
Week 6 |
Tutorial |
Tutorial Revision for the In-Semester exam Learning outcomes: L01, L02 |
Lecture |
Topic 6: Foreign Exchange Exposure I
Learning outcomes: L01, L02 |
|
Week 7 |
Tutorial |
Foreign Currency Derivatives Learning outcomes: L01, L03 |
Lecture |
In-Semester Exam Online In-Semester Exam during Lecture time. Learning outcomes: L01, L03, L04 |
|
Week 8 |
Tutorial |
Foreign Exchange Exposure I Learning outcomes: L01, L03, L04 |
Lecture |
Topic 7: Foreign Exchange Exposure II
Learning outcomes: L01, L03, L04 |
|
Week 9 |
Tutorial |
Foreign Exchange Exposure II Learning outcomes: L03, L04 |
Lecture |
Topic 8: Intl Portfolio Theory and Diversification
Learning outcomes: L05 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
Intl Portfolio Theory and Diversification Learning outcomes: L05 |
Lecture |
Topic 9: Sourcing Global Capital & Political Risk
Learning outcomes: L05 |
|
Week 11 |
Tutorial |
Sourcing Global Capital & Political Risk King's Birthday Public Holiday - Monday 7 Oct 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L05 |
Lecture |
Topic 10 International Capital Budgeting
Learning outcomes: L05 |
|
Week 12 |
Tutorial |
International Capital Budgeting Learning outcomes: L05 |
Lecture |
Guest Lecture/ Special Topics Learning outcomes: L03, L04 |
|
Week 13 |
Tutorial |
Revision Tutorials Learning outcomes: L01, L02, L03, L04, L05 |
Lecture |
Brief course and exam review Learning outcomes: L01, L02, L03, L04, L05 |
Additional learning activity information
Sustainable Development Goal Integration.
This course integrates the following Sustainable Development Goals throughout course learning activities.
Goal 8: Decent work and economic growth
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.