Outline

Overview

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.

Unit details and rules

Academic unit	Finance
Credit points	6
Prerequisites ?	FINC5001
Corequisites ?	None
Prohibitions ?	None
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Juan Yao, juan.yao@sydney.edu.au
Lecturer(s)	Juan Yao, juan.yao@sydney.edu.au
Lecturer(s)	Wei Cui, wei.cui@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Record+)	Final Exam Written exam	50%	Formal exam period	2 hours
Outcomes assessed:
In-semester test (Record+)	Mid-Semester Test Written task	20%	Week 07 Due date: 06 Apr 2022 at 12:00	1 hour
Outcomes assessed:
Assignment	Assignment Written task	30%	Week 11 Due date: 14 May 2022 at 23:59 Closing date: 27 May 2022	12 double-spaced typed pages
Outcomes assessed:
= group assignment ? = Type B final exam ? = Type B in-semester exam ?

Assessment summary

In-semester test: This is an online quiz via Canvas.
Assignment: The group assignment question to be released in week 5.
Final exam: The final exam may comprise of a combination of multiple choice, short answer, problem solving and discussion questions.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

Written work submitted electronically after 11.59 pm on the due date will be considered to have been submitted late. For every calendar day up to and including ten calendar days after the due date, a penalty of 5% of the maximum awardable marks will be applied to late work. For work submitted more than ten calendar days after the due date a mark of zero will be awarded. The marker may elect to, but is not required to, provide feedback on such work.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	1. Introduction; 2. FX markets and exchange rates 1	Lecture and tutorial (3 hr)
Week 02	FX markets and exchange rates 2	Lecture and tutorial (3 hr)
Week 03	International parity conditions 1	Lecture and tutorial (3 hr)
Week 04	International parity conditions 2	Lecture and tutorial (3 hr)
Week 05	Currency derivatives: futures, options and swaps 1	Lecture and tutorial (3 hr)
Week 06	Currency derivatives: futures, options and swaps 2	Lecture and tutorial (3 hr)
Week 07	Midterm review	Lecture and tutorial (3 hr)
Week 08	Exchange rate determination and forecasting	Lecture and tutorial (3 hr)
Week 09	Risk Management and Foreign Currency Hedging	Lecture and tutorial (3 hr)
Week 10	Measuring and managing real exchange risk	Lecture and tutorial (3 hr)
Week 11	International Debt and Equity Financing	Lecture and tutorial (3 hr)
Week 12	International asset pricing and portfolio management	Lecture and tutorial (3 hr)
Week 13	1. Real option and cross-border investment; 2. Review	Lecture and tutorial (3 hr)

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed on the Library eReserve link available on Canvas.

International Financial Management by Geert Bekaert and Robert Hodrick, 3nd Edition, Cambridge University Press, 2018

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

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.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Additional information

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

FINC6013: International Business Finance

Semester 1, 2022 [Normal day] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links