INTERNATIONAL FINANCIAL MANAGEMENT

FIN5IFM

2021

Credit points: 15

Subject outline

In this subject, you will develop an understanding of the structure and operation of the international financial system, including an understanding of the process via which exchange rates are derived. You will also develop a thorough knowledge and understanding of the logic and relevance of the four major international parity conditions: Purchasing Power Parity; Interest Rate Parity; International Fisher Effect; and Foreign Exchange Expectation. Based on the theoretical foundation and empirical evidence, you will evaluate the relative merits and the risks associated with financing and investment decisions in a global economic setting.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorVan Vu

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 5 - Masters

Available as ElectiveYes

Learning ActivitiesCurrency Exchange Rates (lecture and tutorial) and Assessment components.

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Readings

Global investments

Resource TypePrescribed

Resource RequirementN/A

AuthorSolnik B., & D.McLeavey

YearN/A

Edition/Volume6th Edition

PublisherPEARSON - PRENTICE HALL

ISBN9780321527707

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

Intended Learning Outcomes

01. Analyse currency exchange rates
02. Discuss foreign exchange fundamentals; in particular the balance of payments, exchange rate regimes, and international parity relations and their implications. Discuss exchange rate determination theories and their potential implications.
03. Discuss the evolution of international monetary arrangements, the empirical evidence on the various parity conditions, and the analysis of exchange rate forecasting and its use and performance.
04. Explain and discuss the international asset pricing model (ICAPM), in particular, discuss the relation between exchange rates and asset prices.
05. Evaluate the implications of international diversification and discuss risk and return in international investment.
06. Discuss the management of foreign exchange risk.

Subject options

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Start date between: and    Key dates

Melbourne (Bundoora), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 31 - 42
One 1.00 h tutorial per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

Individual Assignment Equivalent to 2000 words

N/AAssignmentIndividualNo30 SILO1, SILO5, SILO6

One hour formative examination Equivalent to 1000 words

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4

Two hour final examination Hurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject

N/ACentral examIndividualYes50 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Online and/or in-class formative assessment tasks Equivalent to 500 words

N/AOtherIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 31 - 41
One 1.00 h tutorial per week on weekdays during the day from week 31 to week 41 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

Individual Assignment Equivalent to 2000 words

N/AAssignmentIndividualNo30 SILO1, SILO5, SILO6

One hour formative examination Equivalent to 1000 words

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4

Two hour final examination Hurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject

N/ACentral examIndividualYes50 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Online and/or in-class formative assessment tasks Equivalent to 500 words

N/AOtherIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2021, Summer, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 46 - 0
One 2.00 h lecture per week on weekdays during the day from week 46 to week 0 and delivered via face-to-face.

TutorialWeek: 47 - 0
One 1.00 h tutorial per week on weekdays during the day from week 47 to week 0 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

Individual Assignment Equivalent to 2000 words

N/AAssignmentIndividualNo30 SILO1, SILO5, SILO6

One hour formative examination Equivalent to 1000 words

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4

Two hour final examination Hurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject

N/ACentral examIndividualYes50 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Online and/or in-class formative assessment tasks Equivalent to 500 words

N/AOtherIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6