Course Title: International Finance

Part A: Course Overview

Course Title: International Finance

Credit Points: 12.00

Terms

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
BAFI1017	City Campus	Postgraduate	625H Economics, Finance and Marketing	Face-to-Face	Sem 1 2006, Sem 2 2006
BAFI1018	City Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Sem 1 2006, Sem 2 2006, Sem 1 2007, Sem 2 2007, Sem 1 2008, Sem 2 2008, Sem 1 2009, Sem 2 2009, Sem 1 2010, Sem 2 2010, Sem 1 2011, Sem 2 2011, Sem 1 2012, Sem 2 2012, Sem 1 2013, Sem 2 2013, Sem 1 2014, Sem 2 2014, Sem 1 2015, Sem 2 2015, Sem 1 2016, Sem 1 2017, Sem 2 2017, Sem 2 2018, Sem 1 2019, Sem 2 2019, Sem 1 2020
BAFI1019	Singapore Inst of Management	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 1 09, Offsh 3 09, Offsh 1 10, Offsh 3 10, Offsh 1 11, Offsh 3 11, Offsh1 12, Offsh3 12, Offsh1 13, Offsh3 13, Offsh1 14, Offsh3 14, Offsh1 15, Offsh3 15, Offsh1 16, Offsh3 16, Offsh1 17, Offsh3 17, Offsh3 18, Offsh1 19, Offsh3 19, Offsh1 20
BAFI2097	Shanghai Uni of Int Bus & Econ	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 1 07
BAFI3200	RMIT University Vietnam	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet1 2013, Viet2 2013, Viet3 2013, Viet1 2014, Viet2 2014, Viet3 2014, Viet1 2015, Viet2 2015, Viet3 2015, Viet1 2016, Viet2 2016, Viet1 2017, Viet2 2017, Viet3 2017, Viet1 2018, Viet1 2019, Viet2 2019, Viet1 2020
BAFI3234	RMIT Vietnam Hanoi Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet1 2020

Course Coordinator: Dr Olga Rud

Course Coordinator Phone: +61 3 9925 9576

Course Coordinator Email: olga.rud@rmit.edu.au

Course Coordinator Location: Melbourne City Campus Building 80, Level 10

Course Coordinator Availability: Melbourne City Campus Building 80, Level 10

Pre-requisite Courses and Assumed Knowledge and Capabilities

Required Prior Study
004969 - Business Finance

Course Description

As a consequence of many global factors, including floating exchange rates, the abolition of capital controls, the deregulation of financial markets and advances in information technology, the field of international finance has become increasingly important over the past three decades. An increase in international trade and the related flow of finance has contributed significantly to the importance of financial management beyond the domestic borders. In this course, you will learn that by understanding the financial decision-making framework from an international perspective, comprehending the global environment of business finance and being aware of the cultural variables of international business, are therefore paramount for today’s financial manager as it provides skills that ensure the competent evaluation of alternatives and the making of objective decisions.

This course provides you with a capstone experience, which will give you the opportunity to integrate, critically reflect on and consolidate what you have learnt in your program.

Objectives/Learning Outcomes/Capability Development

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1. CLO1: Identify the factors that led to the prominence of international finance as a business activity in diverse contexts
2. CLO2: Apply important features of the foreign exchange market and illustrate foreign exchange mechanisms.
3. CLO3: Illustrate various methods and techniques of forecasting.
4. CLO4: Investigate the structure of the balance of payments (BoP) and analyse the concepts of real and effective exchange rates.
5. CLO5: Analyse the factors that affect the supply and demand in the foreign exchange market and evaluate the empirical validity of Purchasing Power Parity.
6. CL0 6: Investigate the reasons for interest parity condition and explain the concept of the real interest rate
7. CLO7: Define risk and exposure and to distinguish between them and illustrate forward hedging, futures hedging, money market hedging and option hedging.
8. CLO8 Introduce the basic concepts pertaining to currency options and identify the determinants of option premiums (prices)

Overview of Learning Activities

To achieve the objectives listed above this course requires you to participate in various learning activities. These activities comprise the following:

• attendance at and notetaking during scheduled lectures and dealing sessions
• active participation in lectures and dealing sessions
• rigorous self-study and preparation
• reading of, and note taking from recommended text books, as well as other references
• optional consultation with academic staff
• complete assessment tasks

Students are expected to conduct their own readings before attending the lectures and dealing sessions. The materials presented in the lectures and dealing sessions may be different from the materials students download from Canvas in terms of information format, breadth and depth. The materials used in the lectures and dealing sessions are specifically designed to explain and demonstrate key concepts and may not include all the details.

Overview of Learning Resources

Various learning resources are available online through myRMIT/Canvas. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.

Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT Library website.

Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.

• A number of External Links are found on the Learning Hub. Secondly, other External Links are categorised into three major sections:

1. Daily Newspapers and Business Magazines
2. Financial Markets
3. International Finance Associations

• References

Overview of Assessment

The assessment tasks, their weighting and the course learning outcomes to which they are aligned are as follows:

Assessment Task 1: 20%
Linked CLOs: 1, 2, 3, 4, 5, 6

Assessment Task 2: 40%
Linked CLOs: 1, 2, 3, 4, 5, 6

Assessment Task 3:  40%
Linked CLOs: 1, 2, 3, 4, 5, 6, 7, 8