Students

AFIN867 – International Financial Management

2014 – MQC S1 Day

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Moderator
Geoff Loudon
Contact via geoff.loudon@mq.edu.au
Unit Convenor
Mervyn Fiedler
Contact via mervyn.fiedler@mq.edu.au
By Appointment
Credit points Credit points
4
Prerequisites Prerequisites
ACST603 or AFIN858 or (admission to MActPrac or MCom or MEc or MIntBus prior to 2011) or (admission to MIntRelMIntComTrdeComLaw or MIntTrdeComLaw or PGDipIntTrdeComLaw or PGCertIntTrdeComLaw)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit is concerned with the analytical techniques of international finance and investment. Topics include global flow of funds and international financial markets, foreign exchange markets, interest parity, arbitrage and currency speculation, purchasing power parity, real effective exchange, commodity swaps, short and long-term hedging of foreign currency risks, futures and options in currencies.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment Tasks

Name Weighting Due
Quizzes 10% Please refer to ilearn.
Class Test 20% Week Beginning 7th April
Assignment 30% Various
Final Exam 40% University Examination Period

Quizzes

Due: Please refer to ilearn.
Weighting: 10%

Students will be assigned a set of multiple choice question each week to be completed online through iLearn.

This includes 10 weekly quizzes worth a total of 10% of your final grade.

Please check iLearn for relevant due dates.

 

No extensions will be granted.  Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved


On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Class Test

Due: Week Beginning 7th April
Weighting: 20%

No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is
made and approved


On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assignment

Due: Various
Weighting: 30%

This will be a group assignment.

Each group must consist of between 4 and 6 members.

Extension 

 

No extensions will be granted. Late tasks will be accepted up to 72 hours after the submission deadline.  There will be a deduction of 20% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 40% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.


On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Final Exam

Due: University Examination Period
Weighting: 40%


On successful completion you will be able to:
  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Delivery and Resources

 

Classes

·      Students should attend one 3 hour class per week.

Required and Recommended texts and/or materials

·  International Financial Management: Sixth Edition Eun & Resnick, ISBN-978-0-07-803465-7, Publisher: McGraw-Hill Irwin
Copyright: 2012  

·    Set chapters for each topic’s lecture are drawn from this text and identified in the lecture topic table below. Students should read these chapters prior to the lecture, so that they are familiar with the material to be covered. This will greatly enhance your learning experience.

·      Required texts can be purchased from the Macquarie University Co-op Bookshop.

Technology Used and Required

  • Financial non-programmable calculators can be used in the unit. A financial calculator is not essential as a scientific non-programmable calculator should meet all your needs (calculation of the Internal Rate of Return (IRR) is not required in any of the assessment tasks). Note: Only non-programmable calculators without text retrieval functionality are allowed for use in the unit’s assessments tasks.

  • Excel or similar spreadsheeting tool will be required to complete the assignment.

  • Students should have access to the internet.

Unit Web Page

  • Course material and announcements are available on the learning management system (iLearn).

Unit Schedule

 

Week No.

Date (Week Beginning)

Topic

Chapters

1

3 March

Foundations of International Financial Management 1

 

1 & 2

2

10 March

 

Foundations of International Financial Management 2

 

3 & 4

3

17 March

The Foreign Exchange Market 1

 

5 & 6

4

24 March

The Foreign Exchange Market 2

 

7

5

31 March

Foreign Exchange Exposure

8 & 9

 

6

7 April

Mid Semester Examination

 

7

28 April

Assignment Preparation 

 

8

5 May

World Financial Markets 1

11

9

12 May

World Financial Markets 2 12 & 13

10

19 May

World Financial Markets 3

 14

11

26 May

Financial Management of the Multinational Firm 1 16 & 17

12

2 June

Financial Management of the Multinational Firm 2

18, 19 & 20  

13

9 June

Revision

 

Note: 

These dates are subject to change.

All chapters relate to the relevant chapter numbers in the prescribed textbook.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Grades

Macquarie University uses the following grades in coursework units of study:

 

·         HD - High Distinction

·         D - Distinction

·         CR - Credit

·         P - Pass

·         F – Fail

 

Grade descriptors and other information concerning grading are contained in the Macquarie

University Grading Policy which is available at:

 

http://www.mq.edu.au/policy/docs/grading/policy.html

 

For further information, please refer to the following link:

http://universitycouncil.mq.edu.au/legislation.html

 

Grade Appeals and Final Examination Script Viewing

 

If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade and/or viewing your final exam script please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.

 

http://www.city.mq.edu.au/reviews-appeals.html

 

Special Consideration Policy

 

The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A special consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level.The policy is available at: http://www.mq.edu.au/policy/docs/special_consideration/policy.html

 

The University defines serious and unavoidable disruption to studies as resulting from an event or set of circumstances that:

·         could not have reasonably been anticipated, avoided or guarded against by the student; and

·         was beyond the student's control; and

·         caused substantial disruption to the student's capacity for effective study and/or the completion of required work; and

·         substantially interfered with the otherwise satisfactory fulfilment of unit or course requirements; and

·         was of at least three (3) consecutive days duration within a study period and/or prevented completion of the final examination.

A Special Consideration application is deemed to be valid if all the following criteria have been satisfied:

·         The Special Consideration application is completed by the student and submitted online through www.ask.mq.edu.au within five (5) working days after the due date of the associated assessment task / final examination.

·         The application contains supportingevidence to demonstrate the severity of the circumstance(s) and that substantial disruption has been caused to the student’s capacity for effective study. (The University will not follow up on outstanding evidence, nor contact any person or body on behalf of the student. The application will be considered as submitted.)

·         The original supporting documentation has been sighted by MQC reception staff within five (5) working days after the due date of the associated assessment task.

·         Where the particular circumstances are medical in nature, a Professional Authority Form including the health professional’s Medicare Provider Number is included. (If a Professional Authority Form cannot be obtained, an original medical certificate indicating the severity (serious / not serious) and impact of the circumstances must be included with the application.)

·         Where the particular circumstances are non-medical in nature, appropriate supporting evidence indicating the severity (serious / not serious) and impact of the circumstances is included with the application.

·         The student was performing satisfactorily in the unit up to the date of the unavoidable disruption. (If a student’s work in the unit was previously unsatisfactory, subsequent unavoidable disruption will not overcome the fact that the earlier work was unsatisfactory).

Unacceptable grounds for Special Consideration

 

The University has determined that some circumstances are not acceptable grounds for claiming Special Consideration. These grounds include, but are not limited, to:

·         routine demands of employment

·         routine family problems such as tension with or between parents, spouses, and other people closely involved with the student

·         difficulties adjusting to university life, to the self-discipline needed to study effectively, and the demands of academic work

·         stress or anxiety associated with examinations, required assignments or any aspect of academic work

·         routine need for financial support

·         routine demands of sport, clubs and social or extra-curricular activities.

Acute Problems

The University defines acute problems as those involving fewer than three (3) consecutive days within a study period. In these cases, students should not apply for special consideration via ask.mq.edu.au, but contact their Unit Convenor within 5 working days of the assessment due date so that a local solution may be discussed, except where the disruption affects completion of a final examination. (If a final examination is affected, the student should submit a special consideration application via ask.mq.edu.au.)

Prior Conditions Conditions existing prior to commencing a unit of study are not grounds for Special Consideration, except in the event of unavoidable deterioration of the condition. The student is responsible for managing their workload in light of any known or anticipated problems. Students with a pre-existing disability/ chronic health condition may contact the Disability Service for information on available support.

In submitting a request for Special Consideration, the student is acknowledging that they may be required to undertake additional work and agreeing to hold themselves available so that they can complete any extra work as required. The time and date, deadline or format of any required extra assessable work as a result of an application for Special Consideration is not negotiable.

 

Attendance at Macquarie City Campus

 

All Students are required to attend at least 80% of the scheduled course contact hours each Session.  Additionally Macquarie City Campus monitors the course progress of international students to ensure that the student complies with the conditions of their visa relating to attendance.

This minimum level of attendance includes all lectures and tutorials. Tutorial attendance will be recorded weekly.  If any scheduled class falls on a public holiday this will be rescheduled as advised by your Lecturer. Attendance at any mid-Session or in-class test is compulsory unless otherwise stated.

Unavoidable non-attendance due to illness or circumstances beyond your control must be supported by appropriate documentation to be considered for a supplementary test.  Other non-attendance will obtain zero for the test. You should refer to the section above on Special Consideration for more details about this.

 

 

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Support at Macquarie City Campus

Students who require assistance are encouraged to contact the Student Services Manager at Macquarie City Campus. Please see reception to book an appointment.

Macquarie University provides a range of Academic Student Support Services. Details of these services can be accessed at http://students.mq.edu.au/support/

At any time students (or groups of students) can book our Student Advising rooms on Level 6 by emailing info@city.mq.edu.au with a day and time and nominated contact person. There are additional student study spaces available on Level 1.

Macquarie University Campus Wellbeing also has a presence on the City Campus each week. If you would like to make an appointment, please email info@city.mq.edu.au or visit their website at: http://www.campuslife.mq.edu.au/campuswellbeing

StudyWISE provides:

·         Online learning resources and academic skills workshops http://www.mq.edu.au/learning_skills

 

·         Personal assistance with your learning & study related questions

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

IT Help at Macquarie City Campus

 

If you wish to receive IT help, we would be glad to assist you at http://informatics.mq.edu.au/help/ or call 02 9850-4357.

 

When using the university's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students and it outlines what can be done.

 

Students must use their Macquarie University email addresses to communicate with staff as it is University policy that the University issued email account is used for official University communication.

 

Students are expected to act responsibly when utilising Macquarie City Campus IT facilities. The following regulations apply to the use of computing facilities and online services:

 

·         Accessing inappropriate web sites or downloading inappropriate material is not permitted.

·         Material that is not related to coursework for approved unit is deemed inappropriate.

·         Downloading copyright material without permission from the copyright owner is illegal, and strictly prohibited. Students detected undertaking such activities will face disciplinary action, which may result in criminal proceedings.

 

Non-compliance with these conditions may result in disciplinary action without further notice.

 

If you would like to borrow headphones for use in the Macquarie City Campus computer labs (210, 307, 311, 608) at any point, please ask at Level 2 Reception. You will be required to provide your MQC Student ID card.  This will be held as a deposit while using the equipment.

 

 

For assistance in the computer labs, please see a Lab Demonstrator (usually they can be found in Lab 311, otherwise ask at Level 2 Reception).

Graduate Capabilities

PG - Discipline Knowledge and Skills

Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Exam

PG - Critical, Analytical and Integrative Thinking

Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Exam

PG - Research and Problem Solving Capability

Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.

This graduate capability is supported by:

Learning outcomes

  • Understand and appreciate changes in the global financial market that impact on international financial management.
  • Demonstrate an understanding of new investment techniques, markets and risk management models.
  • Critically evaluate advanced concepts relating to foreign exchange, financial derivatives, transaction exposure, capital structure and international portfolio theory.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Exam

Research and Practice

·      This unit gives you opportunities to conduct your own research