BUS330: International Finance - at Murdoch University

International finance studies the movements of exchange rates and international investment across countries. These movements affect the operation of multinational enterprises. A clear understanding of the value of currencies is crucial to successful hedging for businesses. A number of hedging techniques used in international finance will be introduced. These include money market hedge, option hedge, forward hedge and hedging using future contracts and currency swaps. In addition, in this unit we also look at the methods for sourcing debt and equity for multinational enterprises.

✔ Learning outcomes:

• Analyse the central features of the global financial environment
• Demonstrate a critical understanding of key concepts and principles relating to foreign exchange theory and multinational exchange rate exposure
• Evaluate the principles and practices relevant to financing multinational firms
• Apply the principles of international finance to analyse foreign investment decisions
• Communicate clearly and coherently both orally and in writing

✔ Unit content:

Multinational financial management; International financial markets; Exchange rate determination; Relationships among inflation, interest rates and exchange rates; International arbitrage and interest rate parity; Currency derivatives; Currency and interest rate swaps; Forecasting exchange rates; Managing transaction exposure; International equity markets; International debt markets