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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.

Details

Academic unit Finance
Unit code FINC6013
Unit name International Business Finance
Session, year
? 
Semester 2, 2022
Attendance mode Normal day
Location Camperdown/Darlington, Sydney
Credit points 6

Enrolment rules

Prohibitions
? 
None
Prerequisites
? 
FINC5001
Corequisites
? 
None
Available to study abroad and exchange students

Yes

Teaching staff and contact details

Coordinator Buhui Qiu, buhui.qiu@sydney.edu.au
Type Description Weight Due Length
Final exam (Record+) Type B final exam Final Exam
Written exam
50% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
In-semester test (Record+) Type B in-semester exam Mid-Semester Test
Written task
20% Week 07
Due date: 13 Sep 2022 at 13:00
1 hour
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
Assignment group assignment Assignment
Written task
30% Week 11
Due date: 21 Oct 2022 at 23:59

Closing date: 04 Nov 2022
12 double-spaced typed pages
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
group assignment = group assignment ?
Type B final exam = Type B final exam ?
Type B in-semester exam = Type B in-semester exam ?
  • 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 sydney.edu.au/students/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.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, 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 dishonesty or plagiarism seriously.

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

WK Topic Learning activity Learning outcomes
Week 01 1. Introduction; 2. FX markets and exchange rates 1 Lecture and tutorial (3 hr) LO1 LO2
Week 02 FX markets and exchange rates 2 Lecture and tutorial (3 hr) LO1 LO2
Week 03 International parity conditions 1 Lecture and tutorial (3 hr) LO2 LO5
Week 04 International parity conditions 2 Lecture and tutorial (3 hr) LO2 LO5
Week 05 Currency derivatives: futures, options and swaps 1 Lecture and tutorial (3 hr) LO3 LO4
Week 06 Currency derivatives: futures, options and swaps 2 Lecture and tutorial (3 hr) LO3 LO4
Week 07 Mid-semester Test Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 08 Risk management and foreign currency hedging Lecture and tutorial (3 hr) LO3 LO4
Week 09 Measuring and managing real exchange risk Lecture and tutorial (3 hr) LO5 LO6
Week 10 Exchange rate determination and forecasting Lecture and tutorial (3 hr) LO2 LO5
Week 11 International asset pricing and portfolio management Lecture and tutorial (3 hr) LO6
Week 12 Real option and cross-border investment Lecture and tutorial (3 hr) LO6
Week 13 1. Taxes and multinational corporate strategy; 2. Review Lecture and tutorial (3 hr) LO6

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 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.

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
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9
No changes have been made since this unit was last offered.

Disclaimer

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