This course is designed to provide students with the theoretical and analytical skills necessary to understand and evaluate key financial issues in the international finance and capital markets. Students will be introduced to fundamental principles of international financial management, and also become familiar with financial hedging strategies. Main topics include the international money market, international banking, exchange rate determination and purchasing power parity, effects of financial globalization, as well as financial risk management methodologies. 

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Express an in depth understanding of key international finance concepts and their application in international financial markets;
2. Demonstrate advanced skills involving collection, interpretation and critical analysis of international financial data.
3. Demonstrate various skills to analyse the business and risks for businesses operating in the global environment.

Research-Led Teaching

Students will acquire the following research skills in this course:

·        Link and apply the theoretical concepts discussed in this course to real world issues;

·        Develop basic research skills and learn to obtain relevant, up-to-date information;

·        Be able to analyse and authenticate current information, and turn it into knowledge;

·        Interpret information and summarize results;

·        Develop the ability to engage in informed critical analysis; and

·        Present, discuss and defend a point of view.

Field Trips

No.

Additional Course Costs

Examination Material or equipment

The final examination is closed-book, cumulative and comprehensive. Unless otherwise stated, all materials covered in this course are potentially examinable. You need a NON-PROGRAMMABLE CALCULATOR for the final examination.

Required Resources

You are expected to be familiar with how to access the Wattle course website (https://wattlecourses.anu.edu.au/). The course materials are downloadable from Wattle. It is your responsibility to check Wattle before every class. In addition, you are expected to be familiar with the use of Microsoft (MS) Word, MS Excel, MS PowerPoint and Adobe Acrobat PDF Reader. You have to make sure that you can access course materials with these software packages.

You are also expected to attend classes regularly.

You need a NON-PROGRAMMABLE CALCULATOR for the course. Please bring it with you when you attend the classes.

The recommended textbook titled “International Financial Management” by Eun and Resnick (2018) is available from the publisher's website (https://www.mheducation.com.au/9781259717789-aus-international-financial-management-group) and at the ANU Library (http://library.anu.edu.au/search~S1/r?SEARCH=finm8007)

Recommended Resources

·        Eun, C., and Resnick, B., 2018. International Financial Management, 8th Ed., US: McGraw-Hill.

(If you are using the 6^th or 7^th editions instead of the 8^th, that is also fine. The 6^th, 7^th and 8^th editions are acceptable for the purpose of this course.)

Most of the course comprises material from Eun and Resnick (2018); for specific chapters assigned for each topic, refer to the weekly Study Schedule and Wattle. The lectures will follow the text fairly closely but may include additional materials (such as journal articles, specialized reports and video clips) that are not available in the text. Additional readings may be assigned and details will be provided on the course website.

The textbook should be available from this link (note that the link below is the 8^th edition):

https://www.mheducation.com.au/9781259717789-aus-international-financial-management-group

Note: Due to several recent developments in the field of international finance, many topics in the textbook have been updated to reflect the latest changes. As such, editions earlier than the 6th are NOT recommended.

Due to copyright restrictions, Study Guides and/or Solutions to the questions in the textbook cannot be provided via email or on Wattle.

·        Background materials from the prerequisite courses (FINM7006/FINM1001 and STAT7055) are available from Wattle.

·        CFA Materials (available at https://cfainstitute.org/ethics/codes):

CFA Code of Ethics and Standards of Professional Conduct

CFA Standards of Practice Handbook

Check Wattle for further information.

·        To ensure that students have equitable on-campus access to some of the recommended textbooks, a Library Reserve Collection for FINM8007 will be set up at Chifley Library. Refer to the following URL for further details: http://library.anu.edu.au/search~S1/r?SEARCH=finm8007

·        You need a NON-PROGRAMMABLE CALCULATOR for this course. Please bring it with you when you attend the classes.

Additional learning materials (such as refereed journal articles, specialist reports and video clips) will also be posted on Wattle from time to time; it is your responsibility to download them as part of the required student preparation. Check Wattle regularly for further information.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written comments
• Verbal comments
• Feedback to the whole class, to groups, to individuals, focus groups

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	This study schedule may be updated depending on the pace of the class. Check Wattle regularly for updates. Additional learning materials (such as refereed journal articles, specialist reports and video clips) will also be posted online from time to time; it is your responsibility to download them as part of the required student preparation. You have to come to class prepared with answers to the practice questions and exercises. Introduction to international finance Foreign exchange markets Lecture slides Eun and Resnick (8th edition) Chapter 5 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded.
2	Foreign exchange market systems Lecture slides Eun and Resnick (8th edition) Chapter 2 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded.
3	Exchange rate determination Lecture slides Eun and Resnick (8th edition) Chapters 5 and 6 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
4	International parity conditions Lecture slides Eun and Resnick (8th edition) Chapters 5 and 6 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
5	Arbitrage and speculation Lecture slides Eun and Resnick (8th edition) Chapters 5 and 6 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
6	Foreign exchange risk management Lecture slides Eun and Resnick (8th edition) Chapters 8, 9, and 10 Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
7	Special topic I Mid-semester exam Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded. Mid-semester exam.
8	Special topic I Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
9	Special topic II Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
10	Special topic II Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
11	Special topic III Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.
12	Special topic III Lecture slides Additional readings (such as journal articles) and other supplementary materials (such as video clips) may be assigned. Check Wattle for updates.	In-class quizzes may be held with no advance notice. These quizzes are not graded. Practice Questions and Exercises (PQE): not graded.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
IN-CLASS QUIZZES (SQ)	0 %	01/08/2019	01/08/2019	1,2,3
PRACTICE QUESTIONS AND EXERCISES (PQE)	0 %	08/08/2019	08/08/2019	1,2,3
MID-SEMESTER EXAM	25 %	26/08/2019	10/10/2019	1,2,3
FINAL EXAM	75 %	31/10/2019	28/11/2019	1,2,3

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Attendance and class participation are NOT formal assessment items for this course. However, your enrolment in this class implies your commitment to attend and participate actively in the weekly classes. Note that you are responsible for what is covered in class, whether or not you are physically present in class. Additionally, note that office hours are not substitutes for class attendance. You are also reminded that there is a highly positive correlation between regular class attendance and performance in this course.

Examination(s)

Unless otherwise stated, all the materials covered in this course are potentially examinable in the final examination. Students will answer questions related to international finance. These questions will be a mixture of theoretical and quantitative questions. All questions are compulsory. You need to use a NON-PROGRAMMABLE calculator for the final examination, which is closed-book, cumulative and comprehensive. ANU TIC is responsible for determining the final examination date. Guidelines for the final examination will be provided after the final examination timetable is confirmed.

Assessment Task 1

IN-CLASS QUIZZES (SQ)

Short Quizzes (SQ) will be given in the lectures regularly. These quizzes are not graded as formal assessment tasks. However, they are incorporated as part of the weekly lecture activities to motivate you to stay current in the course and engage with the material. We will discuss the answers to the SQ after you have completed them in the lectures. You should view the process of answering these quizzes as an important channel of receiving individual feedback on how well you have mastered the concepts in this course. In addition, you should treat these quizzes as a form of preparation for the mid-semester and final exams (which are graded assessment tasks).

Assessment Task 2

PRACTICE QUESTIONS AND EXERCISES (PQE)

Practice Questions and Exercises (PQE) will be assigned and discussed regularly in the weekly lectures. These questions and exercises will be posted on Wattle throughout the semester. Although the Practice Questions and Exercises are not graded as formal assessment tasks, it is your responsibility to work on them before you come to the lectures. Please come to the lectures prepared with your answers to these questions and exercises. You should view the process of answering these questions and exercises as an important channel of receiving individual feedback on how well you have mastered the concepts in this course. In addition, you should treat these questions and exercises as a form of preparation for the mid-semester and final exams (which are graded assessment tasks).

Assessment Task 3

MID-SEMESTER EXAM

·        The mid-semester exam (90-minute exam with an additional reading time of 15 minutes) will be held in Week 6-7 of the semester, as scheduled by the Examinations office. Students will answer questions related to international finance. These questions will be a mixture of theoretical and quantitative questions. All questions are compulsory.

·        The exam will commence punctually. To be fair to all the students, latecomers will not be given extra time. As such, please make sure that you are punctual for the exam.

·        The exam is individual, optional and redeemable for this course.

·        The exam is closed-book, cumulative and comprehensive. The content for the exam will be based on all the materials covered in Topics 1 to 5 (inclusive). No portable electronic devices (such as tablets, laptops and smartphones) are allowed.

·        You must have a NON-PROGRAMMABLE CALCULATOR and writing materials (such as pens or pencils) with you when you attempt the exam. Please do not share calculators during the exam.

·        The exam will usually be marked and returned to students three weeks after the exam. Please note that due to the huge enrolment figure for this course, there can be delays in returning the exam.

·        After the exam is held, we will devote one class to discuss it. During that class, feedback will be provided on key areas of difficulty encountered by students and how answers could be improved. The exam is held so that you are given feedback on your performance. Please treat the exam seriously.

·        Students who are caught cheating in the exam face serious consequences. Academic honesty and integrity is expected of all students, and academic misconduct will not be tolerated.

·        If you would like to apply for Special Consideration for the exam, refer to the following website for further details: http://www.anu.edu.au/students/program-administration/assessments-exams/special-assessment-consideration 

·        Further guidelines for the exam will be provided at least one week before the exam is held.

Assessment Task 4

FINAL EXAM

·        The final examination (120-minute exam with an additional reading time of 15 minutes) is closed-book, cumulative and comprehensive. Unless otherwise stated, all the materials covered in this course are potentially examinable in the final examination. Students will answer questions related to international finance. These questions will be a mixture of theoretical and quantitative questions. All questions are compulsory. You need to use a NON-PROGRAMMABLE calculator for the final examination.

·        The final exam guidelines will be provided approximately two weeks after the announcement of the final exam date, which is scheduled by the ANU Timetabling Information Centre (TIC).

·        If you would like to apply for Special Consideration for the final examination, refer to the following website for further details: http://www.anu.edu.au/students/program-administration/assessments-exams/special-assessment-consideration

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded. OR Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

The results for the mid-semester exam will usually be available three weeks after the exam is held. Due to the huge enrolment figure for this course, please note that there can be delays in processing the marks for the exam.

The mid-semester exam marks will be uploaded to the Wattle Gradebook feature for the course. It is the responsibility of students to check that these recorded marks are in agreement with the marks written on the mid-semester exam.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

There is no resubmission possibility for all the assessment items. Multiple submissions of the assessment items will be ignored and you risk receiving a zero for the assessment items.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students