School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

Your unit may be subject to government or third party COVID-19 vaccination requirements. Please consider this before enrolling in this unit, and speak with the unit coordinator if this raises any concerns.

  • Unit Title

    Financing of International Trade
  • Unit Code

    MBA6125
  • Year

    2022
  • Enrolment Period

    1
  • Version

    2
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Prof Zhaoyong ZHANG

Description

Globalisation has provided expanded opportunity sets for Multinational Corporations (MNCs) but has also compounded the risks faced by these organisations. Recent economic turmoil triggered by sovereign debt crises in the Eurozone, preceded by the Global Financial Crisis, is a testament to this phenomenon. This unit aims to develop a fundamental and practical understanding of the various tools available to hedge against risks that may affect operations, and decisions on multinational financing and capital investment. With a strong focus on current and emerging issues, students will learn how to construct, propose and justify strategies to manage the changing needs of a business operating internationally.

Prerequisite Rule

Students must pass FBL5030

Learning Outcomes

On completion of this unit students should be able to:

  1. Formulate a capital investment plan for a multinational corporation looking to expand foreign operations.
  2. Construct hedging strategies to manage foreign exchange and interest rate risks under changing economic conditions.
  3. Assess current trends in the overall financial environment to relate the operational, financing and investment impacts on an MNC.
  4. Discuss the various components and instruments of the FOREX, financial and money markets in the context of a firm operating globally.
  5. Assess the various components and instruments of the FOREX, financial and money markets in the context of a firm operating globally.

Unit Content

  1. Basic concepts: money demand, money supply, introduction to international trade, international monetary system and the balance of payments.
  2. The FOREX market, international parity conditions, arbitrage and exchange rate determination.
  3. Introduction to foreign currency derivatives: forwards, futures and options.
  4. Managing and hedging foreign exchange exposure.
  5. International financial markets.
  6. Interest rate and currency swaps.
  7. International financial markets.

Learning Experience

ON-CAMPUS

Students will attend on campus classes as well as engage in learning activities through ECU's LMS

JoondalupMount LawleySouth West (Bunbury)
Semester 113 x 2 hour seminarNot OfferedNot Offered

For more information see the Semester Timetable

ONLINE

Students will engage in learning experiences via ECU’s LMS as well as additional ECU learning technologies

Additional Learning Experience Information

Students require regular access to the Internet and LMS. Efforts will be made to feature industry leaders as guest lecturers, enabling learners to make the connections between theory and practical application. Students will be given practice questions on a weekly basis. This will enable them to apply the concepts taught in the prescribed content and be given feedback on their progress. Over and above the prescribed textbook content, systematic efforts will be made during lectures to keep the students abreast of all latest economic and corporate developments.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

ON CAMPUS
TypeDescriptionValue
TestMid-Semester Test25%
ExerciseExercise 20%
ParticipationParticipation5%
Case StudyFinal Assessment50%
ONLINE
TypeDescriptionValue
TestMid-Semester Test25%
ExerciseExercise 20%
ParticipationParticipation5%
Case StudyFinal Assessment50%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Integrity

Integrity is a core value at Edith Cowan University, and it is expected that ECU students complete their assessment tasks honestly and with acknowledgement of other people's work. This means that assessment tasks must be completed individually (unless it is an authorised group assessment task) and any sources used must be referenced.

Breaches of academic integrity can include:

Plagiarism

Copying the words, ideas or creative works of other people, without referencing in accordance with stated University requirements. Students need to seek approval from the Unit Coordinator within the first week of study if they intend to use some of their previous work in an assessment task (self-plagiarism).

Unauthorised collaboration (collusion)

Working with other students and submitting the same or substantially similar work or portions of work when an individual submission was required. This includes students knowingly providing others with copies of their own work to use in the same or similar assessment task(s).

Contract cheating

Organising a friend, a family member, another student or an external person or organisation (e.g. through an online website) to complete or substantially edit or refine part or all of an assessment task(s) on their behalf.

Cheating in an exam

Using or having access to unauthorised materials in an exam or test.

Serious outcomes may be imposed if a student is found to have committed one of these breaches, up to and including expulsion from the University for repeated or serious acts.

ECU's policies and more information about academic integrity can be found on the student academic integrity website.

All commencing ECU students are required to complete the Academic Integrity Module.

Assessment Extension

In some circumstances, Students may apply to their Unit Coordinator to extend the due date of their Assessment Task(s) in accordance with ECU's Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000001386.

Special Consideration

Students may apply for Special Consideration in respect of a final unit grade, where their achievement was affected by Exceptional Circumstances as set out in the Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000003318.

MBA6125|2|1

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

Your unit may be subject to government or third party COVID-19 vaccination requirements. Please consider this before enrolling in this unit, and speak with the unit coordinator if this raises any concerns.

  • Unit Title

    Financing of International Trade
  • Unit Code

    MBA6125
  • Year

    2022
  • Enrolment Period

    2
  • Version

    2
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Prof Zhaoyong ZHANG

Description

Globalisation has provided expanded opportunity sets for Multinational Corporations (MNCs) but has also compounded the risks faced by these organisations. Recent economic turmoil triggered by sovereign debt crises in the Eurozone, preceded by the Global Financial Crisis, is a testament to this phenomenon. This unit aims to develop a fundamental and practical understanding of the various tools available to hedge against risks that may affect operations, and decisions on multinational financing and capital investment. With a strong focus on current and emerging issues, students will learn how to construct, propose and justify strategies to manage the changing needs of a business operating internationally.

Prerequisite Rule

Students must pass FBL5030

Learning Outcomes

On completion of this unit students should be able to:

  1. Formulate a capital investment plan for a multinational corporation looking to expand foreign operations.
  2. Construct hedging strategies to manage foreign exchange and interest rate risks under changing economic conditions.
  3. Assess current trends in the overall financial environment to relate the operational, financing and investment impacts on an MNC.
  4. Discuss the various components and instruments of the FOREX, financial and money markets in the context of a firm operating globally.
  5. Assess the various components and instruments of the FOREX, financial and money markets in the context of a firm operating globally.

Unit Content

  1. Basic concepts: money demand, money supply, introduction to international trade, international monetary system and the balance of payments.
  2. The FOREX market, international parity conditions, arbitrage and exchange rate determination.
  3. Introduction to foreign currency derivatives: forwards, futures and options.
  4. Managing and hedging foreign exchange exposure.
  5. International financial markets.
  6. Interest rate and currency swaps.
  7. International financial markets.

Learning Experience

ON-CAMPUS

Students will attend on campus classes as well as engage in learning activities through ECU's LMS

JoondalupMount LawleySouth West (Bunbury)
Semester 113 x 2 hour seminarNot OfferedNot Offered

For more information see the Semester Timetable

ONLINE

Students will engage in learning experiences via ECU’s LMS as well as additional ECU learning technologies

Additional Learning Experience Information

Students require regular access to the Internet and LMS. Efforts will be made to feature industry leaders as guest lecturers, enabling learners to make the connections between theory and practical application. Students will be given practice questions on a weekly basis. This will enable them to apply the concepts taught in the prescribed content and be given feedback on their progress. Over and above the prescribed textbook content, systematic efforts will be made during lectures to keep the students abreast of all latest economic and corporate developments.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

ON CAMPUS
TypeDescriptionValue
TestMid-Semester Test25%
ExerciseExercise 20%
ParticipationParticipation5%
Case StudyFinal Assessment50%
ONLINE
TypeDescriptionValue
TestMid-Semester Test25%
ExerciseExercise 20%
ParticipationParticipation5%
Case StudyFinal Assessment50%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Integrity

Integrity is a core value at Edith Cowan University, and it is expected that ECU students complete their assessment tasks honestly and with acknowledgement of other people's work. This means that assessment tasks must be completed individually (unless it is an authorised group assessment task) and any sources used must be referenced.

Breaches of academic integrity can include:

Plagiarism

Copying the words, ideas or creative works of other people, without referencing in accordance with stated University requirements. Students need to seek approval from the Unit Coordinator within the first week of study if they intend to use some of their previous work in an assessment task (self-plagiarism).

Unauthorised collaboration (collusion)

Working with other students and submitting the same or substantially similar work or portions of work when an individual submission was required. This includes students knowingly providing others with copies of their own work to use in the same or similar assessment task(s).

Contract cheating

Organising a friend, a family member, another student or an external person or organisation (e.g. through an online website) to complete or substantially edit or refine part or all of an assessment task(s) on their behalf.

Cheating in an exam

Using or having access to unauthorised materials in an exam or test.

Serious outcomes may be imposed if a student is found to have committed one of these breaches, up to and including expulsion from the University for repeated or serious acts.

ECU's policies and more information about academic integrity can be found on the student academic integrity website.

All commencing ECU students are required to complete the Academic Integrity Module.

Assessment Extension

In some circumstances, Students may apply to their Unit Coordinator to extend the due date of their Assessment Task(s) in accordance with ECU's Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000001386.

Special Consideration

Students may apply for Special Consideration in respect of a final unit grade, where their achievement was affected by Exceptional Circumstances as set out in the Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000003318.

MBA6125|2|2