International Finance - 2016

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Unit summary


  • Level of Study: Postgraduate
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP
  • Availability for 2016: Sess 2
  • Availability for 2017: Sess 2
  • Assessment: Assignment (40%) , Invigilated Exam (60%)

Unit provided by

2016 Fees
Domestic 3,840.00
International 4,090.00

This unit introduces you to international aspects of finance. The international economy is playing an ever increasing role in finance and students need to be aware of the threats and opportunities of this development. International finance differs from 'domestic' finance in two important regards. First, the absence of a common currency for transactions and second, the pricing of capital assets may be substantially different in the global economy. This unit, accordingly, focuses on exchange rates and their different determinants and also the implications of capital market segmentation.

At the completion of this unit students will be able to:

  1. understand why it is important to study international finance
  2. distinguish international finance from domestic finance
  3. investigate the institutional framework within which international payments are made and the movement of capital is accommodated
  4. investigate the balance of payments, how it is constructed and how balance of payments data may be interpreted
  5. analyse the institutional framework within which exchange rates are determined
  6. understand key international parity relationships, such as interest rate parity and purchasing power parity, and approaches to exchange rate forecasting
  7. investigate world financial markets and institutions - the international banking and money market, the international bond market and both the primary and secondary equity markets throughout the world
  8. investigate why investors diversify their portfolios internationally and recognise how much investors can gain from international diversification
  9. examine the effects of fluctuating exchange rates on international portfolio investments
  10. analyse the reasons for “home bias” in portfolio holdings.
  • Assignment (40%)
  • Invigilated Exam (60%)
For more information on invigilated exams see Exams and results

Recommended prerequisites

You are recommended to have completed the following unit(s) or have equivalent knowledge before starting this unit:

  • Broadband access

In order to enrol in this unit, you must be accepted into one of the following courses:

Please visit the course details page and read the Requirements tab for more information about eligibility.

This unit addresses the following topics.

1Introduction to International Finance
2The Foreign Exchange Market
3The International Monetary System
4Balance of Payments
5International Parity Conditions
6Foreign Exchange Rate Determination and Forecasting
7Foreign Exchange Exposure and Management
8International Portfolio Investment
9Foreign Direct Investment and Political Risk
10Multinational Capital Budgeting
11Multinational Tax Management and Subject Revision

This unit is delivered using the following methods and materials:

Instructional Methods

  • Blogs
  • Discussion Forum/Discussion Board
  • Online Quizzes/Tests
  • Online assignment submission
  • Podcasting/Lecture capture
  • Standard Media
  • Web links
  • Wikis

This unit is a core requirement in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a unit.

Click on the titles of the listed books below to find out more:

Required textbooks

There are no required textbooks for this unit.

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