BAFN601 - International Finance

Year

Credit points

Campus offering

Prerequisites

BAFN600 Finance and Quantitative Methods

Teaching organisation

Unit rationale, description and aim

BAFN601 International Finance is a specified unit in Master of Finance. Students will need to understand the concepts of international monetary system, balance of payments, foreign exchange markets, hedging via derivatives, multinational capital structure and cost of capital, international trade finance, foreign direct investment and political risk. Students will also need to compare and contrast the means of financing domestically and globally. You will further develop skills in analysing and developing strategies for making finance decisions to generate sustainable shareholder value, leading to common good to the society. This unit provides students with necessary knowledge and skills needed to key business decisions in relation to international finance.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - Critically assess corporate financial decision-making within the context of ethical perspectives. (GA2, GA3, GA4, GA5, GA6, GA8) 

LO2 - Analyse the structure and role of the foreign exchange spot and forward markets, and of the currency futures, swaps and options markets (GA4, GA5, GA6, GA7, GA8) 

LO3  - Evaluate the different ways in which companies can raise additional finance internationally and how that can lead to common good. (GA2, GA5, GA6, GA7, GA8) 

LO4 - Critically assess the business and financial risks faced by companies with international operations. (GA3, GA4, GA6, GA7, GA8) 

LO5 - Appraise international capital projects, foreign direct investment and political risks collaboratively. (GA3, GA4, GA6, GA7, GA8) 

Graduate attributes

GA2 - recognise their responsibility to the common good, the environment and society 

GA3 - apply ethical perspectives in informed decision making

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA7 - work both autonomously and collaboratively 

GA8 - locate, organise, analyse, synthesise and evaluate information 

Content

 Topics will include: 

• Multinational Financial Management 
• The International Monetary System 
• The Balance of Payments 
• The Foreign Exchange Market 
• International Parity Conditions 
• Foreign Currency Futures and Options 
• Interest Rate Derivatives and Swaps 
• Exchange Rate Determination and Forecasting 
• Foreign Exchange Exposure 
• Multinational Capital Structure and Cost of Capital 
• Raising Equity and Debt Globally 
• International Trade Finance 
• Foreign Direct Investment and Political Risk 
• Multinational Capital Budgeting and Cross-Border Acquisitions 

Learning and teaching strategy and rationale

The teaching and learning strategy is built on a “student-focused approach”. ACU’s teaching policy focuses on learning outcomes for students. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning from others. ACU promotes and facilitates learning that is autonomous and self-motivated, is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied.

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Blended” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups. Students are able to attend the interactive online sessions or face-to-face sessions, engage in self-directed learning supported by online activities, readings, forum discussions, assignment preparation and complete authentic activities and assessments.

Attendance mode

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher order thinking. The unit ensures that learning activities involve real-world scenarios that potentially pave the way for real-world preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.

This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platform (LEO-Learning Environment Online) used in this unit provides multiple forms of preparatory and practice opportunities for you to prepare and revise.

Blended Mode

In a blended mode, students will require intermittent face-to-face attendance determined by the School. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Online Mode

This unit uses an active learning approach to support students in the exploration of the essential knowledge associated with financial planning. Students can explore the essential knowledge underpinning financial planning and develop knowledge in a series of online interactive lessons and modules. Students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge of financial planning. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning.

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning that seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. In order to pass this unit, you are required to achieve an overall score of at least 50% and attempt all assessment items. Using constructive alignment, the assessment tasks are designed for you to demonstrate your achievement of each learning outcome.

Assessment one and two are the same regardless of whether teaching mode is attendance, blended, or online. Assessment three is the same for attendance and blended modes, but changes for online mode. This is indicated in overview of assessment table below. Both methods assess the same learning outcomes.

Overview of assessments

Representative texts and references

Eiteman, D et al., 2016, Multinational Business Finance, 14th edition, Pearson, England. ISBN- 13: 9781292097879

Bekaert, G and Hodrick, R 2014, International Financial Management, 2nd edition, Pearson, England. ISBN-13: 9781292021393

Madura, J 2018, International Financial Management, Abridged, 13th edition, Cengage, USA. ISBN-9781337099738