This unit covers topics related to international finance, including exchange rate systems, exchange rate determination theory, and the management of firms' foreign exchange rate risk. It examines the importance of hedging and the challenges involved in assessing and managing such risks in a global context. The unit also covers hedging tools such as currency forwards, money market facilities, and options. Additionally, it explores the challenges of operating exposure and political risks associated with foreign direct investments, and includes an overview of cryptocurrencies.
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. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.
apply critical thinking, problem-solving, and teamwork skills in individual and group assessment tasks related to international finance.
critically appraise the applicability of exchange rate determination theories to today's globalised economy
analyse and evaluate the advantages and disadvantages of various exchange rate systems
evaluate and recommend appropriate hedging approaches for firms in various economic and firm-specific circumstances
evaluate the benefits and challenges of foreign direct investments and assess associated political risks
analyse and recommend alternative approaches to manage economic or operating exchange risk for firms
