PDF unit guide - Faculty of Business and Economics

BFC3240
International finance
Unit Guide
Semester 1, 2015
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Last updated: 03 Mar 2015
Table of Contents
BFC3240 International finance - Semester 1, 2015.................................................................................1
Mode of Delivery..............................................................................................................................1
Workload requirements....................................................................................................................1
Unit Relationships............................................................................................................................1
Prerequisites........................................................................................................................1
Prohibitions..........................................................................................................................1
Chief Examiner(s)........................................................................................................................................1
Campus Lecturer(s).....................................................................................................................................1
Clayton.............................................................................................................................................1
Your feedback to Us....................................................................................................................................2
Previous Student Evaluations of this Unit....................................................................................................2
Academic Overview...................................................................................................................................3
Learning Outcomes.........................................................................................................................3
Unit Schedule.............................................................................................................................................4
Teaching Approach..........................................................................................................................4
Assessment Summary.....................................................................................................................5
Hurdle Requirements...........................................................................................................5
Second marking...................................................................................................................5
Return of final marks............................................................................................................5
Exam viewing.......................................................................................................................6
Assessment criteria..............................................................................................................6
Assessment Requirements......................................................................................................................7
Assessment Tasks...........................................................................................................................7
Assessment task 1...............................................................................................................7
Assessment task 2...............................................................................................................7
Examination(s).............................................................................................................................................8
Examination 1..................................................................................................................................8
Learning resources......................................................................................................................................9
Feedback to you..........................................................................................................................................9
Assignment submission...............................................................................................................................9
Online submission...........................................................................................................................9
Required Resources....................................................................................................................................9
Prescribed text(s) and readings.......................................................................................................9
Other Information....................................................................................................................................10
Policies..........................................................................................................................................10
Graduate Attributes Policy.................................................................................................10
Student Charter.........................................................................................................................................10
Student services........................................................................................................................................10
Monash University Library.........................................................................................................................10
Moodle 2....................................................................................................................................................10
Disability Liaison Unit................................................................................................................................11
BFC3240 International finance - Semester 1, 2015
Topics include the international financial system, institutions and market practices; international finance
theorems and their application; Euromarkets; international debt and equity raising; measurement of
foreign exchange risk; managing foreign exchange exposure; foreign currency futures, options and
swaps, international portfolio investment and capital budgeting and international trade finance.
Mode of Delivery
Clayton (Day)
Workload requirements
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per
semester typically comprising a mixture of scheduled learning activities and independent study.
Independent study may include associated readings, assessment and preparation for scheduled
activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled
activities may include a combination of teacher directed learning, peer directed learning and online
engagement.
See also Unit timetable information
Unit Relationships
Prerequisites
AFC2140 or BFC2140
Prohibitions
AFW2341, BFW2341, BFF2341,AFC3240
Chief Examiner(s)
Associate Professor Elaine Hutson
Campus Lecturer(s)
Clayton
Assoc Professor Elaine Hutson
Campus: Caulfield
Phone: +61 3 990 32110
Email: [email protected]
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BFC3240 International finance - Semester 1, 2015
Your feedback to Us
Monash is committed to excellence in education and regularly seeks feedback from students, employers
and staff. One of the key formal ways students have to provide feedback is through the Student
Evaluation of Teaching and Units (SETU) survey. The University’s student evaluation policy requires that
every unit is evaluated each year. Students are strongly encouraged to complete the surveys. The
feedback is anonymous and provides the Faculty with evidence of aspects that students are satisfied
and areas for improvement.
For more information on Monash’s educational strategy, see:
www.monash.edu.au/about/monash-directions/ and on student evaluations, see:
www.policy.monash.edu/policy-bank/academic/education/quality/student-evaluation-policy.html
Previous Student Evaluations of this Unit
If you wish to view how previous students rated this unit, please go to
https://emuapps.monash.edu.au/unitevaluations/index.jsp
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Academic Overview
Learning Outcomes
The learning goals associated with this unit are:
1. analyse and evaluate the benefits and disadvantages of the various exchange rate systems
2. critically appraise the extent to which the theories of exchange rate determination explain
exchange rate movements in today's globalised economy
3. explain the various tools and approaches for firms in hedging transaction exchange exposure,
and recommend the most appropriate approach to hedging in a variety of economic and
firm-specific circumstances
4. analyse the extent to which firms are exposed to economic or operating exchange risk, evaluate
their systems in place to manage it, and recommend alternative approaches
5. appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification
6. apply critical thinking, problem solving and presentation skills to individual and/or group activities
dealing with international finance and demonstrate in an individual summative assessment task
the acquisition of a comprehensive understanding of the topics covered by BFC3240.
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Unit Schedule
Week
Activities
0
Assessment
No formal assessment or activities are
undertaken in week 0
1
What is IF/IFM? Current multinational financial
challenges, and ownership and governance of the
company
2
The international monetary system
3
The balance of payments
4
The US and European financial crises
5
The foreign exchange market, and international parity
conditions, part 1-Â purchasing power parity
6
International parity conditions, part 2 - interest rate
parity
7
Mid-semester test in lecture this week
8
The determinants of exchange rates
9
Currency derivatives
10
Transaction exposure management
11
Operating exposure management
12
International portfolio theory
Mid-semester test in lecture
Group assignment due 4pm Friday 15th
May
SWOT VAC
No formal assessment is undertaken
SWOT VAC
Examination period
LINK to Assessment Policy:
http://policy.monash.edu.au/policy-bank/
academic/education/assessment/
assessment-in-coursework-policy.html
Teaching Approach
This unit will be taught as a two-hour lecture and a one-hour tutorial each week for 12 weeks. The lecture
sessions will cover significant points of the topics (see Unit Schedule). It is not intended that the lecturer
will cover every aspect of each topic, but rather provide a framework of the important theoretical
concepts and practical issues.
Lecture slides and tutorial questions will be posted on Moodle. Solutions to non-mathematical tutorial
questions will not be posted on Moodle. Students are expected to attend all lecture and tutorial
sessions.
In order to participate and to gain maximum benefit from the tutorial sessions, all of the questions set for
each week are to be attempted before the tutorial for that week. At times in the tutorials the tutor will
invite students to raise and discuss relevant issues and areas of concern. Students should take this
opportunity to clarify areas of difficulty, and to contribute actively to class discussions.
Students are expected to spend additional private study time and access the recommend readings,
which are available on the library’s Reading List system.
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Unit Schedule
To ensure a high probability of completing successfully this unit, students need to approach it in a
systematic way. At a minimum this should involve:
• reading the prescribed material prior to each weekly session;
• preparing solutions to each set of questions prior to the session;
• attending sessions and participating in discussions;
• reviewing material from other references from time to time
Assessment Summary
Within semester assessment: 40%
Examination: 60%
Assessment Task Value
Due Date
Mid-semester test
20%
Week 7 (week beginning 20th April) in lecture
Group assignment
20%
Friday, 15th May, 4 pm
Examination 1
60%
To be advised
Hurdle Requirements
There is a hurdle requirement in this unit. The learning outcomes in this unit require students to
demonstrate in the individual summative assessment task a comprehensive understanding of the topics
covered in the unit. This is demonstrated by the requirement that the student must attain a mark of at
least 50% in the final summative assessment task.
A student's final mark is normally the sum of the marks obtained in all of the individual assessment items
in the unit. Where a student fails the unit solely because of failure to satisfy the hurdle requirement, a
mark of 48 will be returned for the unit.
Second marking
Where an assessment task is given a fail grade by an examiner, that piece of work will be marked again
by a second examiner who will independently evaluate the work, and consult with the first marker. No
student will be awarded a fail grade for an assessment task or unit without a second examiner confirming
the result.
Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark,
unless the total of such pieces exceeds 30% of the final mark.
Return of final marks
Faculty policy states that 'the final mark that a student receives for a unit will be determined by the Board
of Examiners on the recommendation of the Chief Examiner taking into account all aspects of
assessment'.
The final mark for this unit will be released by the Board of Examiners on the date nominated in the
Faculty Calendar. Student results will be accessible through the my.monash portal.
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Unit Schedule
Exam viewing
Feedback on student performance in examinations and other end-of-semester assessment is required, in
accordance with the University's procedures on unit assessment. For more information, go to:
http://www.buseco.monash.edu.au/baf/student/exam-view/index.html.
Assessment criteria
Assessment Criteria Grading Descriptors available at:
http://www.buseco.monash.edu.au/esg/agu/policies/assessment.html.
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Assessment Requirements
Assessment Tasks
•
Assessment task 1
Title:
Mid-semester test
Due date:
Week 7 (week beginning 20th April) in lecture
Details of task:
This will be a 60-minute test.
The test will be closed book and approved calculators will be permitted.
•
Materials that are examinable in the test include the content in lecture weeks 1 – 5
(tutorial weeks 1 – 6).
Weighting/Value:
20%
Estimated return date:
Marks will be made available to students during tutorials by week 10.
Criteria for marking:
Overall, the work submitted for assessment will be graded in accord with the table
showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p.6).
Learning objectives assessed:
This assessment task is designed to verify your achievement of learning objectives 1, 2
and 6.
Additional information:
If an application for special consideration is received within two days after the in-semester
test, and the application is approved by the Chief Examiner, then a make-up test will be
offered, which must be taken prior to the examination period.
Assessment task 2
Title:
Group assignment
Due date:
Friday, 15th May, 4 pm
Details of task:
This is a group assisgnment for 3 to 5 people. Question to be advised. It will involve a
real-world issue/problem that you have to research, assess and evaluate, and make a
recommendation about.
Word limit:
2000
Weighting/Value:
20%
Presentation requirements:
Academic integrity:
In order to ensure the academic integrity of your submission and to deter others from
copying your work, your submission may be processed by text matching software such as
Turnitin. For additional information, the University's Student Academic Integrity Policy can
be found at URL:
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Assessment Requirements
http://www.policy.monash.edu/policy-bank/academic/education/conduct/student-academic-integritySee Additional Information below for "guidelines and handy hints".
Estimated return date:
Feedback and marks will be available within two weeks of submission.
Criteria for marking:
Overall, the work submitted for assessment will be graded in accord with the table
showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p.6).
Learning objectives assessed:
This assessment task is designed to verify your achievement of learning objectives 2 and
6.
Submission details:
Assignments should be submitted via the department assignment box at Clayton Campus,
Building 11 (Menzies Building), Level 10.
Work submitted for assessment must be accompanied by a completed and signed
assignment coversheet, available at URL:
http://www.buseco.monash.edu.au/student/forms/assignment-cover-sheet-fbe.doc.
Penalties for late lodgement:
Applications for an extension of time allocated to an in-semester assessment task must be
made by completing the application form.
The application form must be submitted to the Chief Examiner for consideration no later
than two university working days after the due date.
Examination(s)
• Examination 1
Weighting:
60%
Length:
3 hours
Type (open/closed book):
Closed book
Electronic devices allowed in the exam:
Electronic devices (including calculators) are not permitted in tests and examinations in
this unit unless identified with an "approved for use" label. These labels are available
from: Clayton campus: Banking and Finance General Office (building 11, level 10).
Remarks:
The final examination will be held during the official examination period. Information about
examination schedule can be accessed through my monash portal at URL:
https://my.monash.edu.au/.
All topics are examinable (both lecture and tutorial material included).
Overall, the work submitted for assessment will be graded in accord with the table
showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p.6)
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Assessment Requirements
Learning resources
Monash Library Unit Reading List (if applicable to the unit)
http://readinglists.lib.monash.edu/index.html
Feedback to you
Types of feedback you can expect to receive in this unit are:
• Graded assignments with comments
• Test results and feedback
Assignment submission
Online submission
If Electronic Submission has been approved for your unit, please submit your work via the learning
system for this unit, which you can access via links in the my.monash portal.
Required Resources
Virtual learning environment (VLE): Moodle
Material used in class together with other information of importance to you will be published online via
the unit’s Moodle site. In order to access information about this unit in Moodle you must be enrolled in
the unit and have a valid student account with authcate username and password. Moodle is accessed
through my.monash portal. When you log in to the portal you access Moodle in the "home page" by
clicking on the Moodle 2 link under "Online Systems".
Q Manual
Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which
is the faculty's student guide for producing quality work on time. Copies of this manual can be purchased
at the bookshop or accessed online.
Calculators
Electronic devices (including calculators) are not permitted in tests and examinations in this unit unless
identified with an "approved for use" label. These labels are available from: Clayton campus: Banking
and Finance General Office (building 11, level 10).
Prescribed text(s) and readings
Eiteman, D.K., Stonehill, A.I., & Moffett, M.H. (2013) Multinational Business Finance, (13th ed. Global
Edition). Pearson Education.
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Other Information
Policies
Monash has educational policies, procedures and guidelines, which are designed to ensure that staff and
students are aware of the University’s academic standards, and to provide advice on how they might
uphold them. You can find Monash’s Education Policies at:
www.policy.monash.edu.au/policy-bank/academic/education/index.html
Key educational policies include:
• Student Academic Integrity Policy and Student Academic Integrity: Managing Plagiarism and
Collusion Procedures ;
• Assessment in Coursework Programs;
• Special Consideration;
• Grading Scale;
• Discipline: Student Policy;
• Academic Calendar and Semesters;
• Orientation and Transition; and
• Academic and Administrative Complaints and Grievances Policy.
Graduate Attributes Policy
http://www.policy.monash.edu/policy-bank/academic/
education/management/monash-graduate-attributes-policy.html
Student Charter
www.opq.monash.edu.au/ep/student-charter/monash-university-student-charter.html
Student services
The University provides many different kinds of support services for you. Contact your tutor if you need
advice and see the range of services available at http://www.monash.edu.au/students
Monash University Library
The Monash University Library provides a range of services, resources and programs that enable you to
save time and be more effective in your learning and research. Go to www.lib.monash.edu.au or the
library tab in my.monash portal for more information.
Moodle 2
All unit and lecture materials, plus other information of importance to students, are available through the
virtual learning environment Moodle site. You can access Moodle via the my.monash portal.
Where to go for help
If you're stuck, confused or simply not sure how to approach Moodle, there are a number of Moodle
resources that you can tap into.
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Other Information
Disability Liaison Unit
Students who have a disability or medical condition are welcome to contact the Disability Liaison Unit to
discuss academic support services. Disability Liaison Officers (DLOs) visit all Victorian campuses on a
regular basis.
• Website: http://www.monash.edu/equity-diversity/disability/index.html
• Telephone: 03 9905 5704 to book an appointment with a DLO;
• Email: [email protected]
• Drop In: Equity and Diversity Centre, Level 1, Building 55, Clayton Campus.
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