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FIN385 Trade and Business Finance (8)

Abstract

This subject  provides the student with an overview of multinational enterprise finance and trade issues.  Particular emphasis is given to foreign exchange risk which is arguably the most important international finance risk multinational enterprises are exposed to.  Students are introduced to the mechanics of the foreign exchange market, strategies to predict foreign exchange movements and derivatives used by multinational enterprises to manage foreign exchange risk.  In addition, three broad categories of risk exposure specific to multinational enterprises are explained: transaction exposure; translation exposure; and operating exposure.

+ Subject Availability Modes and Location

Session 1
On CampusYangzhou University
On CampusYunnan Uni-Finance & Economics
Term 1
On CampusJilin Uni- Finance & Economics
On CampusTianjin University of Commerce
Continuing students should consult the SAL for current offering details: FIN385
Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Subject information

Duration Grading System School:
One sessionHD/FLSchool of Accounting and Finance

Enrolment restrictions

Enrolment in FIN385 is restricted to students completing Stages I, II and III of the Bachelor of Business Studies China Program or students enrolled in a Transnational Education Partner Program only.
Incompatible subject(s)Related subject(s)
FIN340 FIN340 covers similar content covered in FIN385 which is only for students enrolled through partners in China.

Learning Outcomes

Upon successful completion of this subject, students should:
  • be able to critically analyse key international finance and trade issues multinational enterprises are exposed to;
  • be able to explain and highlight the mechanics of foreign exchange markets;
  • be able to compare and appraise established techniques to predict foreign exchange movements;
  • be able to recommend appropriate strategies to manage foreign exchange risk using foreign exchange derivatives such as forwards, futures, options and swaps; and
  • be able to analyse and explain the nature of transaction, translation and operating exposures multinational enterprises face operating in an international context.

Syllabus

The subject will cover the following topics:
  • introduction to trade and multinational enterprise finance issues;
  • the foreign exchange market and trade balances;
  • exchange rate determination: spot and forward rates;
  • foreign currency derivatives: futures and options;
  • foreign currency derivatives: swaps;
  • transaction exposure;
  • operating exposure; and
  • translation exposure.

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The information contained in the 2018 CSU Handbook was accurate at the date of publication: 24 November 2017. The University reserves the right to vary the information at any time without notice.