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

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.

Butler, K., 2012. Fifth Edition, Multinational Finance: Evaluating Opportunities, Costs, and Risks of Operations. Wiley.

• 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.

Please check your student email and MyUni as course-related announcements are communicated via email and also posted onto MyUni.

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.

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.

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	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

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.

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

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%.