CO3611 - Multinational Business Finance

Credit points:	03
Year:	2005
Student Contribution Band:	Band 2
Administered by:

The study of the theory and practice of corporate international financial management at final year undergraduate level, including the measurement and management of operating, transaction and accounting exposure to foreign exchange rate risk, foreign currency futures and options, interest rate exposure and swaps, the financing of the multinational firm and multinational capital budgeting.

Learning Outcomes

• design foreign exchange risk hedging strategies using futures and option contracts;
• discuss the concept of operating exposure and the strategies for its management;
• discuss the implications of segmented and integrated equity markets for multinational firms and portfolio investors;
• explain and contrast corporate exposure to transaction and translation exposure to foreign exchange rate risk;
• explain the basis of valuation of traded currency options;
• solve international capital expenditure decisions;
• understand how interest rate and currency swaps can be used in multinational risk management.

Graduate Qualities

• The ability to think critically, to analyse and evaluate claims, evidence and arguments;
• The ability to adapt knowledge to new situations;
• The ability to define and to solve problems in at least one discipline area;
• The ability to communicate effectively with a range of audiences;
• The ability to speak and write logically, clearly and creatively;
• The ability to calculate, produce, interpret and communicate numerical information;
• The ability to select and use appropriate IT tools;
• The ability to access and employ online technologies effectively;
• A coherent and disciplined body of skills, knowledge, values and professional ethics in at least one discipline area;
• The ability to use a variety of media and methods to retrieve, analyse, evaluate, organise and present information;
• The ability to reflect on and evaluate learning processes and products;
• The ability to learn independently and in a self-directed manner;
• A commitment to lifelong learning and intellectual development.

Prerequisites:	CO2601
Inadmissible Subject Combinations:	CO2602

Availabilities
, , Study Period 1
Census Date 31-Mar-2005
Coord/Lect:	afwsa.
Contact hours:	26 hours 12 hours 12 hours
Assessment:	(60%); (20%); (20%).

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.