General Information
Learning to take advantage of opportunities in the global financial markets while managing the associated risks is the aim of this advanced finance subject. The primary themes include understanding the nature of international financial markets, risk management and hedging by firms with international operations, the advantages and disadvantages of the diverse sources of funds available from international financial markets and issues related to cross-border and multi-currency valuation. You will apply theoretical frameworks to analyse the macroeconomic environment of international finance and employ an array of financial instruments and tools for managing foreign exchange and country risk, raising capital in the global financial markets and valuing cross-border investments. The case method is central to the learning approach used in this subject, highlighting a number of contemporary organisations and issues in international finance. The material draws on and extends theories and concepts from previous subjects to provide an in-depth understanding of the themes noted above.
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Details
Academic unit: Bond Business School Subject code: FINC71-607 Subject title: International Financial Management Subject level: Postgraduate Semester/Year: September 2023 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Seminar: x12 (Total hours: 24) - Seminar
- Computer Lab: x12 (Total hours: 24) - Computer Lab
- Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. -
Resources
Prescribed resources: No Prescribed resources.
After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.iLearn@Bond & Email: iLearn@Bond is the Learning Management System at Bond University and is used to provide access to subject materials, class 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: | September 2023 |
| Credit points: | 10.000 |
| Timetable: | https://bond.edu.au/timetable |
|---|---|
| Delivery mode: | Standard |
| Workload items: |
|
| Attendance and learning activities: | Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. |
| Prescribed resources: | No Prescribed resources. After enrolment, students can check the Books and Tools area in iLearn for the full Resource List. |
|---|---|
| iLearn@Bond & Email: | iLearn@Bond is the Learning Management System at Bond University and is used to provide access to subject materials, class 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: |
Nil |
|---|---|
| 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. Assumed Prior Learning (or equivalent):
|
| 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:
- Demonstrate knowledge of basic theorems of exchange rate determination, interest rates and inflation and the role of arbitrage in keeping the foreign exchange market efficient.
- Apply knowledge of foreign exchange hedging to identify and manage the foreign exchange risks faced by globally active firms.
- Demonstrate the ability to select global financing strategies and propose solutions that will take advantage of opportunities in the global financial markets to the benefit of relevant stakeholders.
- Demonstrate the ability to deliver an effective oral presentation with appropriate visuals.
- Demonstrate the ability to produce a clear and concise written report that demonstrates higher order understanding of key concepts in international finance.
- Demonstrate the ability to work in a team setting to coordinate analysis of a case study to arrive at a sound financial decision regarding an issue in capital raising and international valuation.
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 Test (Open) Covers material from Weeks 1-3 seminars and labs. 10.00% Week 4 1,2 Case Study§ Partner case study report. Two-page written report (plus exhibits) for in-depth foreign exchange risk hedging case prepared with a partner of your choosing. 20.00% Week 6 1,2,5,6 Paper-based Test (Open) Covers materials from Weeks 4-6 seminars and labs. 10.00% Week 7 1,2 Case Study Individual Case Study Report. Two-pages written report (plus exhibits) for indepth international capital raising case. 20.00% Week 9 1,3,5 Presentation§ Individual escalator pitch (3 minute) of an innovative solution to a current global financial issue 20.00% Week 12 1,2,3,4 Student Engagement Classroom contribution. Designed to encourage preparation and discussion of the cases as determined by the instructor with feedback provided by peer assessors. Mid-semester memo will be provided. 20.00% Ongoing 1,2,4 - § 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 Test (Open) | Covers material from Weeks 1-3 seminars and labs. | 10.00% | Week 4 | 1,2 |
| Case Study§ | Partner case study report. Two-page written report (plus exhibits) for in-depth foreign exchange risk hedging case prepared with a partner of your choosing. | 20.00% | Week 6 | 1,2,5,6 |
| Paper-based Test (Open) | Covers materials from Weeks 4-6 seminars and labs. | 10.00% | Week 7 | 1,2 |
| Case Study | Individual Case Study Report. Two-pages written report (plus exhibits) for indepth international capital raising case. | 20.00% | Week 9 | 1,3,5 |
| Presentation§ | Individual escalator pitch (3 minute) of an innovative solution to a current global financial issue | 20.00% | Week 12 | 1,2,3,4 |
| Student Engagement | Classroom contribution. Designed to encourage preparation and discussion of the cases as determined by the instructor with feedback provided by peer assessors. Mid-semester memo will be provided. | 20.00% | Ongoing | 1,2,4 |
- § 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
Bond University‘s Student Code of Conduct Policy , Student Charter, Academic Integrity Policy and our Graduate Attributes guide expectations regarding student behaviour, their rights and responsibilities. Information on these topics can be found on our Academic Integrity webpage recognising that academic integrity involves demonstrating the principles of integrity (honesty, fairness, trust, professionalism, courage, responsibility, and respect) in words and actions across all aspects of academic endeavour.
Staff are required to report suspected misconduct. This includes all types of plagiarism, cheating, collusion, fabrication or falsification of data/content or other misconduct relating to assessment such as the falsification of medical certificates for assessment extensions. The longer term personal, social and financial consequences of misconduct can be severe, so please ask for help if you are unsure.
If your work is subject to an inquiry, you will be given an opportunity to respond and appropriate support will be provided. Academic work under inquiry will not be marked until the process has concluded. Penalties for misconduct include a warning, reduced grade, a requirement to repeat the assessment, suspension or expulsion from the University.
Feedback on assessment
Feedback on assessment will be provided to students according to the requirements of the Assessment Procedure Schedule A - Assessment Communication Procedure.
Whilst in most cases feedback should be provided within two weeks of the assessment submission due date, the Procedure should be checked if the assessment is linked to others or if the subject is a non-standard (e.g., intensive) subject.
Accessibility and Inclusion Support
Support is available to students where a physical, mental or neurological condition exists that would impact the student’s capacity to complete studies, exams or assessment tasks. For effective support, special requirement needs should be arranged with the University in advance of or at the start of each semester, or, for acute conditions, as soon as practicable after the condition arises. Reasonable adjustments are not guaranteed where applications are submitted late in the semester (for example, when lodged just prior to critical assessment and examination dates).
As outlined in the Accessibility and Inclusion Policy, to qualify for support, students must meet certain criteria. Students are also required to meet with the Accessibility and Inclusion Advisor who will ensure that reasonable adjustments are afforded to qualifying students.
For more information and to apply online, visit BondAbility.
Additional subject information
A peer-evaluation system will be used in this subject to help determine the individual marks for all group assessments. As part of the requirements for Business School quality accreditation, the Bond Business School employs 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.
Subject curriculum
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Globalisation and the Multinational Firm
An introduction to the larger environment in which businesses operate. Consideration of the notion that both successful multinational and domestic firms must manage the risks and take advantage of opportunities in the global financial markets.
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Foreign Exchange Market
Reviews the fundamentals of the foreign exchange market, the world’s largest and most efficient market. Also highlights the importance of arbitrage in establishing and maintaining the properties of this market and applying this knowledge to convert currencies and measure the impact of bid-ask spreads. The use of Bloomberg to build cross-exchange tables and extract real-time and historical exchange rate data is also introduced.
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International Monetary System
Examines the progression of exchange rate regimes in Australia to gain an appreciation of why Australia (and most developed countries) have floating exchange rates. Also explores the impact of trade imbalances on inflation under Gold Standard, Bretton Woods and Floating Exchange Rate regimes.
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International Parity Conditions
Introduces an analytical framework for understanding the macroeconomic environment of global finance. The theoretical and applied perspectives of international parity conditions (i.e., interest rate parity and purchasing power parity) are contrasted to gain insight into to solve real-world problems using the logic underlying arbitrage and the "Law of One Price".
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Country Risk
Explores the qualitative and quantitative components of country risk including political, financial, and economic. A case study of a firm operating in an unstable country is introduced to assess the impact and on the firm and explore potential solutions.
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Foreign Exchange Risk
An overview and comparison of the different types of foreign exchange risk: transaction, translation and operational exposure for a variety of firms and situations.
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Managing Foreign Exchange Risk
Demonstrates the application of an array of financial instruments and tools (e.g., forwards, futures, options, swaps and money market hedges) using examples and an in-depth case study.
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Structured Finance Products
Explores a variety of structured finance products including securitised asset-backed securities, collateralised debt obligations and credit derivatives (e.g., credit default swaps, currency swaps and interest rate swaps). Considers how the nature of the swap market has changed with its evolution and expansion.
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International Capital Raising
Introduces the diverse sources of funding available from the international financial markets. This includes consideration of the advantages and disadvantages of domestic versus foreign sources, public versus private sources, international debt versus international equity, foreign bonds, Eurobonds, Sukuk bonds, cross-listing and the three levels of American depository receipts.
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Special Topics in International Finance
Explore current topics in international finance including Islamic finance, sovereign wealth funds and other relevant international finance issues.
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International Valuation
An examination of cross-border and multi-currency security pricing and issuance in the global markets within the context of initial public offerings (IPOs), leveraged buyouts and/or joint ventures) in international or cross-border settings. An IPO Roadshow role play provides a context to summarise and integrate the central themes of the subject overall.