General Information
The objective of this subject is to understand how to manage risks and take advantage of opportunities in the global financial markets. Broad topics include: 1) the foreign exchange market, 2) hedging foreign exchange risk, 3) raising capital internationally, 4) cross-border and multi-currency valuation.
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Details
Academic unit: Bond Business School Subject code: FINC71-607 Subject title: International Financial Management Subject level: Postgraduate Semester/Year: January 2018 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Computer Lab: x11 (Total hours: 22) - Laboratory
- Lecture: x12 (Total hours: 24) - Weekly Lecture
- Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: This is a case-based subject. The classroom contribution grade strives to measure how you have contributed to the learning environment of your classmates. After each lecture session, I record my perceptions of each student's contribution and also refer to the peer assessor's notes. Then I record a grade with attendance, participation, contribution (as defined during the first class powerpoint slides) each allocated a score out of 1; you can receive more than 1/1 for contribution for a given class. You are expected to email me ([email protected]) in advance (if possible), if you have to be absent from a lecture. -
Resources
Prescribed resources: Journals
- Southam, Dunbar and Linqist (2013). Initial Public Offerings.
Others
- Southam (2017). International Financial Management. Ivey Publishing
- Various Authors Media.
iLearn@Bond & Email: iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
| Academic unit: | Bond Business School |
|---|---|
| Subject code: | FINC71-607 |
| Subject title: | International Financial Management |
| Subject level: | Postgraduate |
| Semester/Year: | January 2018 |
| Credit points: | 10.000 |
| Timetable: | https://bond.edu.au/timetable |
|---|---|
| Delivery mode: | Standard |
| Workload items: |
|
| Attendance and learning activities: | This is a case-based subject. The classroom contribution grade strives to measure how you have contributed to the learning environment of your classmates. After each lecture session, I record my perceptions of each student's contribution and also refer to the peer assessor's notes. Then I record a grade with attendance, participation, contribution (as defined during the first class powerpoint slides) each allocated a score out of 1; you can receive more than 1/1 for contribution for a given class. You are expected to email me ([email protected]) in advance (if possible), if you have to be absent from a lecture. |
| Prescribed resources: | Journals
Others
|
|---|---|
| iLearn@Bond & Email: | iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au |
Enrolment requirements
| Requisites: |
Pre-requisites:Co-requisites:There are no co-requisites |
|---|---|
| Assumed knowledge: |
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
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| Restrictions: |
Nil |
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate the ability to deliver an effective oral presentation and to produce a clear and concise written report that demonstrates higher order understanding of key functions and concepts in international finance.
- Our students will demonstrate the ability to select global financing strategies and propose ethically responsible solutions that will benefit the relevant stakeholders.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
Generative Artificial Intelligence in Assessment
The University acknowledges that Generative Artificial Intelligence (Gen-AI) tools are an important facet of contemporary life. Their use in assessment is considered in line with students’ development of the skills and knowledge which demonstrate learning outcomes and underpin study and career success. Instructions on the use of Gen-AI are given for each assessment task; it is your responsibility to adhere to these instructions.
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Assessment details
Type Task % Timing* Outcomes assessed Paper-based Examination (Limited Open) Midterm Examination 40% Mid-Semester Examination Period 1,4,5 Case Study§ Partner (Your Choice) Case Study Report 10% Week 5 1,2,3,4,5 Case Study Individual Case Study Report 10% Week 9 1,3,4,5 Case Study§ Team Case Study Report, Presentation and Peer Assessment 20% Week 11 1,2,3,4,5 *Class Participation Individual Class and Tutorial Contribution 20% Ongoing 1,5 - § Indicates group/teamwork-based assessment
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
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Assessment criteria
Assessment criteria
High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment. Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
| Type | Task | % | Timing* | Outcomes assessed |
|---|---|---|---|---|
| Paper-based Examination (Limited Open) | Midterm Examination | 40% | Mid-Semester Examination Period | 1,4,5 |
| Case Study§ | Partner (Your Choice) Case Study Report | 10% | Week 5 | 1,2,3,4,5 |
| Case Study | Individual Case Study Report | 10% | Week 9 | 1,3,4,5 |
| Case Study§ | Team Case Study Report, Presentation and Peer Assessment | 20% | Week 11 | 1,2,3,4,5 |
| *Class Participation | Individual Class and Tutorial Contribution | 20% | Ongoing | 1,5 |
- § Indicates group/teamwork-based assessment
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
Assessment criteria
| High Distinction | 85-100 | Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. |
|---|---|---|
| Distinction | 75-84 | Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. |
| Credit | 65-74 | Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. |
| Pass | 50-64 | Usually awarded to students whose performance meets the requirements set for work provided for assessment. |
| Fail | 0-49 | Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. |
Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Study Information
Submission procedures
Students must check the iLearn@Bond subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
In fairness to your classmates, case reports cannot be accepted after the class discussion of that case. With instructor permission, an alternative assignment will be provided in situations where the deadline cannot be met.
Academic Integrity
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Bond University utilises Originality Reporting software to inform academic integrity.Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
Accessibility and Inclusion Support
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
Subject curriculum
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Week 1
Introduction; Globalization and the Multinational; Firm Foreign Exchange Market.
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Week 2
International Monetary System; Exchange Rate Theory and Arbitrage; Learning with Cases.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 3
Case: Country Risk Management; Managing Foreign Exchange Risk I; Hedging with Forwards and Futures.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 4
Managing Foreign Exchange Risk II; Money Market Hedge; Hedging with Options.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 5
Managing Foreign Exchange Risk III; Case: Hedging Foreign Exchange Risk.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate the ability to deliver an effective oral presentation and to produce a clear and concise written report that demonstrates higher order understanding of key functions and concepts in international finance.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 6
Managing Foreign Exchange Risk IV; Case: Currency Swap.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate the ability to deliver an effective oral presentation and to produce a clear and concise written report that demonstrates higher order understanding of key functions and concepts in international finance.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 7
Midterm; Covers Weeks 1 – 6; 'Cheat Sheet' Allowed; 50% Quantitative; 50% Qualitative.
SLOs included
- Our students will demonstrate the ability to identify and manage the risks faced by globally active firms and apply their knowledge and problem-solving techniques in capital raising and international valuation to take advantage of opportunities in the global financial markets.
- Our students will demonstrate an understanding of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
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Week 8
Global Financing I; Case: International Equity Markets.
SLOs included
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate the ability to deliver an effective oral presentation and to produce a clear and concise written report that demonstrates higher order understanding of key functions and concepts in international finance.
- Our students will demonstrate the ability to select global financing strategies and propose ethically responsible solutions that will benefit the relevant stakeholders.
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Week 9
Global Financing II; Case: International Debt Markets; Valuation Primer.
SLOs included
- Our students will work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an international financing issue.
- Our students will demonstrate the ability to deliver an effective oral presentation and to produce a clear and concise written report that demonstrates higher order understanding of key functions and concepts in international finance.
- Our students will demonstrate the ability to select global financing strategies and propose ethically responsible solutions that will benefit the relevant stakeholders.
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Week 10
International Valuation I; Introduction to IPOs; Working Session for Teams.
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Week 11
International Valuation II; IPO Team Presentations at Road Show.