BFC3240 International finance
Faculty of Business and Economics
BFC3240 International finance is a level 3, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2020 in Semester 1 and Semester 2 at Clayton. It needs (BFC2140, BFF2140, BFB2140 or BFW2140) and (BFC2751, BFF3751 or BFW2751).
- Credit points
- 6
- Offered in 2020
- Semester 1, Semester 2
- Clayton
- Assessment
- Exam 110%
- and 2 other tasks
- Workload
- 144 hours
- per semester
This is the 2020 handbook entry. See the 2027 entry.
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Requisites
Before BFC3240
Prerequisites
Pass these before you enrol.
After BFC3240
No unit lists BFC3240 as a prerequisite in the 2020 handbook.
Overview
Topics covered in this unit include the international financial system and the various types of exchange rate systems that exist around the world. Also included is the theory of the determination of exchange rates, as well as an analysis of the extent to which these theories hold in practice. A major topic area is the measurement and management of firms' foreign exchange rate risk, including theory relating to the importance of hedging against exchange risks, and the complexities involved in assessing and managing exchange rate risks in a globally connected world. In discussing the management of foreign currency transactions, the use of hedging tools such as: currency forwards, money market facilities, and options is covered. Operating exposure and political risks associated with foreign direct investments are covered to illustrate the real challenges beyond transaction exposures. The final topic is cryptocurrencies.
Offerings in 2020
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Clayton | On campus |
| First semester (Fully flex) | Clayton | Flexible |
| Second semester | Clayton | On campus |
Assessment
- Within semester assessment40%
- ExaminationThreshold hurdle60%
- Within semester assessment50%
- ExaminationThreshold hurdle50%
Learning outcomes
When you finish this unit, you should be able to:
- 1
analyse and evaluate the benefits and disadvantages of the various exchange rate systems
- 2
critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy
- 3
explain the various tools and approaches for firms in hedging transaction exchange exposure, and recommend the most appropriate approach to hedging in a variety of economic and firm-specific circumstances
- 4
analyse the extent to which firms are exposed to economic or operating exchange risk, evaluate their systems in place to manage it, and recommend alternative approaches
- 5
appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification
- 6
apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with international finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC3240.
Workload and teaching
- Lectures24 hours
- Tutorials12 hours
- Teaching approachActive learning
- Teaching approachPeer assisted learning
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.
Learning resources
Technology resources
The only Faculty approved calculators permitted in tests and examinations for all Australian campuses and locations is the HP10bII+ or Casio FX82 (any suffix).
Where it fits
BFC3240 is part of 2 areas of study in the 2020 handbook.
Contacts
- Chief Examiners
- Dr Ali Sheikhbahaei
Common questions
What are the prerequisites for BFC3240?
You need (BFC2140, BFF2140, BFB2140 or BFW2140) and (BFC2751, BFF3751 or BFW2751) before you enrol.
When is BFC3240 offered?
In 2020, BFC3240 runs in Semester 1 and Semester 2 at Clayton.
How much work is BFC3240?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFC3240 have an exam?
Yes. The exam is worth 110% of the final mark, alongside 3 other tasks.
Which majors and minors include BFC3240?
BFC3240 is part of Finance.