CORPFIN 7050 - International Financial Management (M)

North Terrace Campus - Semester 2 - 2021

This course focuses on the theoretical and practical knowledge required for the management of financial and investment functions of multinational corporations. Students will discover how the international capital markets, foreign exchange markets, and the derivatives market can be used to manage transaction and operating risks facing the multinational firm. Students will learn, through hands-on case studies and empirical evidence how to manage multinational companies' investment and financing activities. The relevance of country risk and international corporate governance in cross-border investments will also be examined. The general emphasis is on the identification and management of opportunities and risk relating to international investments, exchange rate fluctuations, international financial markets and government policy changes.

  • General Course Information
    Course Details
    Course Code CORPFIN 7050
    Course International Financial Management (M)
    Coordinating Unit Adelaide Business School
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites CORPFIN 7005, ECON 7200
    Course Description This course focuses on the theoretical and practical knowledge required for the management of financial and investment functions of multinational corporations. Students will discover how the international capital markets, foreign exchange markets, and the derivatives market can be used to manage transaction and operating risks facing the multinational firm. Students will learn, through hands-on case studies and empirical evidence how to manage multinational companies' investment and financing activities. The relevance of country risk and international corporate governance in cross-border investments will also be examined. The general emphasis is on the identification and management of opportunities and risk relating to international investments, exchange rate fluctuations, international financial markets and government policy changes.
    Course Staff

    Course Coordinator: Professor Alfred Yawson


    Location: Room 12.38, 10 Pulteney Street

    Telephone: 8313 0687

    Consultation: Wed 10 am – 12 pm

    Email: alfred.yawson@adelaide.edu.au

    Course Website: www.myuni.adelaide.edu.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes

    By the end of the course, you should be able to:



    1. Understand international capital and foreign exchange market


    2. Identify and appraise investment opportunities in the international environment


    3. Identify risk relating to exchange rate fluctuations and develop strategies to deal with them


    4. Identify and evaluate foreign direct investment and international acquisition opportunities


    5. Develop strategies to deal with other types of country risks associated with foreign operations


    6. Express well considered opinion on issues relating to international financial management.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1 - 6
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1 - 6
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1 - 6
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1 - 6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    1 - 6
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    1 - 6
  • Learning Resources
    Required Resources
    Butler, K., 2012. Fifth Edition, Multinational Finance: Evaluating Opportunities, Costs, and Risks of Operations. Wiley.
    Recommended Resources
    • Eun, C. S., Resnick, B. G. (2012). International Financial Management, 6th Edition, McGraw-Hill, New York.
    • Moosa, I. A. (2010). International Finance: An Analytical Approach, Third Edition, McGraw-Hill, Australia
    • Shapiro, A.C. (2009). Multinational Financial Management, 6th Edition, Wiley.
    • Journal articles
    • Erel, I., Liao, R. C. and Weisbach, W.S. (2012) Determinants of Cross-Border Mergers and Acquisitions, Journal of Finance 67, 1045 – 1082. Wiley-Blackwell.
    • Owen S.,Yawson A. (2010_.Human development and cross border acquisitions. Journal of Empirical Finance 17, 689-701. Elsevier.
    • Rossi, R., Volpin, P. F. (2004). Cross-country determinants of mergers and acquisitions, Journal of Financial Economics 74, 277-304. Elsevier.
    Additional reading materials will be provided throughout the semester.
    Online Learning
    Please check your student email and MyUni as course-related announcements are communicated via email and also posted onto MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Teaching & Learning Modes

    In this course, we seek to create an interesting, challenging, relevant, and engaging education experience. To help achieve this objective we have a number of teaching aims:
    • Create a climate of engagement, dialogue and ongoing feedback between students and lecturers regarding the content, teaching strategies, learning experiences and outcomes
    • Cater for a variety of learning preferences and abilities by providing a range of learning activities and teaching methods
    • Develop independent learning skills and create an environment that both provides structure and guidance as well as encouraging students to extend their learning 


      Teaching strategies

      This course is a combination of formal lectures, tutorials (problem solving classes) and brief presentations by students. The lectures are used to explain concepts and to give real life examples of situations in which these concepts are used. The tutorials are for problem-solving and discussion of issues raised in the lectures. All tutorial questions are from end of chapter exercises in Butler. There is an expectation that students will engage in additional readings, as well as the required text. In all classes, students are encouraged to ask questions if there is material that they do not understand. The brief presentation involves detailing the weekly behaviour of the Australian dollar.

       
      TUTORIALS

      Tutorial questions will be discussed every week. Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by employers and professional bodies.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.

    Students in this course are expected to attend all lectures throughout the semester.
    Learning Activities Summary
    Lecture schedule
    Week subject Butler ch.
    1 Overview and background 1-2
    2 Foreign exchange and eurocurrency market 3
    3 The international parity conditions and their consequences 4
    4 Quiz
    Currency futures, currency options and currency swaps
    5, 6, 7
    5 Currency futures, currency options and currency swaps 5, 6, 7
    6 Multinational Treasury Manangement 8
    7 Managing transaction exposure to currency risk
    Managing operating exposure to currency risk
    9
    10
    8 Foreign market entry and country risk management
    Multinational capital structure and cost of capital
    12
    14
    9 Class Test
    10 Multinational capital budgeting 13
    11 Real options and cross-border investment strategy 16
    12 Coporate governance and international market for corporate control 17, Assigned
    Journal Articles
     
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Due Date Weighting Related
    Learning
    Outcome
    Group Assignments TBA 20% 1 to 3
    Class test Week 8 15% 1 to 6
    Final Exam Exam period 65% 1 to 6
    Assessment Related Requirements

    Requirements

    1. To gain a pass in this course, an overall score of at least 50% must be obtained.

    2. Legible handwriting and the quality of English expression are considered to be integral parts of the assessment process.

    3. Students in this course are not permitted to take a dictionary (English or English-Foreign) into the examination.

    4. The use of non-programmable calculator is permitted in this course.


    Notes on Assessment

    All set work must be provided by the due date and must be genuine attempts, to complete the course.

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. You may lose some marks in the class test and final examination because of poor hand-writing.

    Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.

    Assessment Detail

    Details of each assessment component will be discussed in class and posted onto the subject webpage.

    Assessment Detail
    Details of each assessment component will be discussed in class and posted onto the subject webpage.
    Submission
    Notes on Assessment

    1. All set work must be provided by the due date and must be genuine attempts, to complete the course.

    2. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. You may lose some marks in the class test and final examination because of poor hand-writing.

    3. Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.Supplementary Examinations

    Illness

    Anyone who cannot submit a major assignment/sit an examination due to illness must submit the appropriate University of Adelaide form.

    Normal doctor’s certificates alone do not have to be accepted.

    An application must be accompanied by the form downloaded from: http://www.adelaide.edu.au/student/exams/pdfs/supp_applic.pdf

    Compassionate Grounds

    For a supplementary examination on compassionate grounds refer to: http://www.adelaide.edu.au/student/exams/pdfs/supp_applic.pdf.

    Academic grounds

    To qualify for Academic supplementary Assessment students must achieve a total mark of at least 45%.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.