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Unit of study_

FINC6013: International Business Finance

In our highly globalised and integrated world economy, understanding international dimensions of financial management is essential for businesses. This unit provides a greater understanding of the fundamental concepts and the tools necessary for effective financial decision making by business enterprises, within a global setting.

Code FINC6013
Academic unit Finance
Credit points 6

At the completion of this unit, you should be able to:

  • LO1. apply the basic foreign exchange concepts to the foreign exchange market, recognise its key institutional features, and quotations
  • LO2. apply basic exchange rate determination models to detect arbitrage opportunities
  • LO3. explain how currency derivative contracts such as futures, forwards, swaps and options can be used to hedge and speculate based on anticipated exchange rate movements
  • LO4. make recommendations on the hedging practices of international corporations based on the knowledge and principals of currency derivatives
  • LO5. apply, fundamental international parity conditions such as Purchasing Power Parity and Interest Parity to exchange rate determination
  • LO6. explain why domestic firms may wish to indulge in foreign currency financing and investment as well as recommend how the choice is made between domestic currency and foreign currency financing and investment decisions.