FN225 International Finance
DESCRIPTION
This unit aims to provide an understanding with the operation and role of international financial markets from a macroeconomic view. The unit covers aspects such as foreign exchange markets and determination of exchange rates; the role of foreign exchange derivatives; the international monetary system; international capital flows and markets; interest parity relationships; currency areas; and international debt.
RELEVANT COURSES
Elective unit
CREDIT POINTS
10
DELIVERY MODE
On campus
Intensive
Extensive
PREREQUISITE OR CO-REQUISITE
UNIT LEARNING OUTCOMES
LO1 Understand and recognise the structure of international financial markets from a macroeconomic view
LO2 Analyse and explain the Australian balance of payments and its relationship to international finance
LO3 Explain the foreign exchange market and the concepts of nominal, real and effective exchange rates
LO4 Explain the role of risk and risk management in foreign exchange markets
LO5 Explain the theories of exchange-rate determination
CONTENT
- The foreign exchange market
- The balance of payments and effective exchange rate
- Exchange rate determination
- The international monetary system and exchange rate arrangements
- The eurocurrency market and international banking
- International banking regulation and Basel accords, exchange rate forecasting, technical analysis and trading rules
- Currency futures and swaps, currency options
- International arbitarage, foreign exchange risk and exposure
- Foreign exchange risk management
- International short-term financing and investment
- International long-term financing and investment
- Foreign direct investment and international capital budgeting
ASSESSMENT METHODS
- Online Quizzes – 20%
- Critical Analysis – 30%
- Exam – 50%
PRESCRIBED READINGS
Lessambo, F. I. (2021). International finance: New players and global markets. Cham, Switzerland: Palgrave Macmillan.
Check with the lecturer each semester before purchasing any textbooks