BFI3231 · International finance and the global economy

Multinational corporations are forced to operate in an increasingly competitive and complex global environment. Firms and financial intermediaries are exposed to international competition, and financial managers need to understand macroeconomic and currency risks, and how international financial markets function. This unit provides an introduction to macroeconomics in an international context, to multinational enterprise, and financial management. Topics covered include macroeconomic implications of cross border transactions, operation of foreign exchange markets, methods of hedging foreign exchange risks, overseas financing and investment decisions, international working capital management, and international financial markets, banking and treasury.

The Handbook publishes no offerings for this unit.

The Handbook lists an examination for this unit.

1. 1 - Presentation

   Presentation

   30%

2. 2 - Project

   Project

   40%

3. 3 - Examination

   Examination

   30%

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

1. explain and interpret key macroeconomic concepts, with particular emphasis on the Indonesian economy and its connections to the global economy;
2. recognise definitional and measurement problems associated with the available finance, corporate, and macroeconomic data, with a particular focus on the open economy dimension to develop basic data fluency skills;
3. analyse and evaluate the benefits and disadvantages of the various exchange rate systems;
4. critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy;
5. analyse the extent to which firms and banks are exposed to foreign exchange risk, evaluate their systems in place to manage it, including the various tools and approaches for firms in hedging foreign exchange exposure in a variety of economic and firm-specific circumstances;
6. appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification;
7. critically appraise emerging issues in finance, such as ethics, socially responsible finance, and the impact of technology, with a particular focus on the international aspects;
8. apply critical thinking and problem solving to individual and/or group activities dealing with international finance and demonstrate the acquisition of a comprehensive understanding of the topics covered by BFI3231.

Active learning - This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities. Enquiry-based learning - This unit engages you in enquiry-based learning, where you will be encouraged to use your own knowledge to develop and engage in a process of enquiry, study and research to identify areas to be investigated and an approach to doing so. Problem-based learning - This unit includes problem-based learning approaches, where you engage in research, integrate theory and practice and apply knowledge and skills to develop viable solutions in response to a problem or set of problems.

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. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Listed as the Handbook publishes them. Your unit's Moodle page has the current reading list.

BFI3231 is listed in 2 majors, minors or specialisations in the 2027 Handbook.

Credit points

6

Level

Level 3

Faculty

Faculty of Business and Economics

School

Faculty of Business and Economics

Student contribution band

Band 4

Study abroad

Available

Handbook version

2027.01

These are students' own experiences, not official rules. Go by the Handbook.