| UNIT TITLE |
Financing of International Trade |
| UNIT CODE |
MBA6125 |
| CREDIT POINTS |
20 |
| FULL YEAR UNIT |
No |
| PRE-REQUISITES |
FBL5030 - Fundamentals of Value Creation in Business
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| MODE OF DELIVERY |
On-campus
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This version of the unit will be offered from 1/1/2014 |
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DESCRIPTION
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Globalisation has provided expanded opportunity sets for multinational corporations (MNCs). Yet recent episodes in world markets have compounded the risks faced by MNCs. This unit aims to develop a fundamental and practical understanding of the various tools available to hedge against risks that may affect operations, and decisions on financing and capital investment. With a strong focus on current and emerging issues, students will learn how to construct, propose and justify strategies to manage the changing needs of a business operating internationally.
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| LEARNING OUTCOMES |
On successful completion of this unit students should be able to:
- discuss the various components and instruments of the FOREX, financial and money markets in the context of a firm operating globally;
- assess current trends in the overall financial environment to relate the operational, financing and investment impacts on an MNC;
- construct hedging strategies to manage foreign exchange and interest rate risks under changing economic conditions; and
- propose a capital investment plan for a multinational corporation looking to expand foreign operations.
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| UNIT CONTENT |
- Introduction to international trade, monetary systems and the Balance of Payments.
- The FOREX market, fundamentals of exchange rate determination, and mechanics of currency futures and options.
- Managing and hedging foreign exchange exposure.
- International financial markets.
- Capital structure, the cost of capital, interest rate and currency swaps.
- Cash management and international trade transactions.
- International tax environment.
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| TEACHING AND LEARNING PROCESSES |
| Students are to attend a weekly three-hour seminar. Additionally, regular access to the Internet and Blackboard is required. Industry leaders will feature as guest lecturers, enabling learners to make the connections between theory and practical application. Digital recordings of unit content are used to introduce concepts and principles to be applied and discussed during class exercises. Weekly practice questions allow students to work at applying the concepts taught in the prescribed content and obtain feedback on their progress. Students are required to complete two group problem sets (strategy briefs), one group presentation and one individual interview. These are assessed for quality at the academic and professional standards, written communication (structure, language and convention), ability to work effectively with others, critical analysis (depth of thought, development of argument, logical analysis and insight) and ability to research effectively using academic and contemporary sources. |
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| GRADUATE ATTRIBUTES |
- ability to communicate
- ability to work in teams
- critical appraisal skills
- ability to generate ideas
- cross-cultural and international outlook
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| ASSESSMENT |
| Grading Schema 1 |
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| Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners. |
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The student must record a submission for Assessment items 1, 2 and 3 to qualify for the Mandatory Interview (Assessment Item 4).
The student must pass the Mandatory Interview (Assessment Item 4) to qualify for a pass in the unit. Otherwise a grade of Fail Incomplete (FI) will be awarded. |
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Item
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On-Campus Assessment
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Value
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Assignment
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Strategy brief
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25%
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Assignment
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Strategy brief
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25%
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Presentation
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Group presentation
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25%
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Reflective Practice
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Mandatory interview
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25%
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| TEXTS |
| Eun, C. S., & Resnick, B. G. (2012). International financial management (6th ed.). New York: McGraw-Hill.New York. |
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| SIGNIFICANT REFERENCES |
| Moosa, I. A. (2010). International finance: An analytical approach (3rd ed.). Australia: McGraw-Hill. |
| Viney, C., & Phillips, P. (2012). Financial institutions, instruments and markets (7th ed.). Australia: McGraw-Hill |
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Various academic and industry articles posted on Blackboard.
Use of real-time data and publications from the World Bank, IMF, OECD, Department of Foreign Affairs and Trade (Australia), Reserve Bank of Australia and other central banks.
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| Disability Standards for Education (Commonwealth 2005) | |
| For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes, Graduate Attributes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Student Equity, Diversity and Disability Service website: |
| http://intranet.ecu.edu.au/student/support/student-equity |
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Academic Misconduct
Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:
- plagiarism;
- unauthorised collaboration;
- cheating in examinations;
- theft of other students’ work.
Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.
The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.
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