INTERNATIONAL FINANCE - 2019/0
Module code: MANM200
In today's global financial markets and business activity, managers are increasingly concerned with decision making across borders and in a multicurrency environment. This module examines currency markets and transactions, exchange rate systems and implications for exchange rate volatility, identification and management of currency risks that arise from international operations. It also examines issues that arise when firms seek financing outside their home markets.
Surrey Business School
VELEANU V Dr (SBS)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
JACs code: N300
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
Indicative content includes:
The role of financial management in multinational corporations
Nature and sources of international funds-International money and capital markets
Foreign exchange markets and exchange rate determination
Exchange rate parity conditions – Interest Rate Parity, Purchasing Power Parity, the International Fisher effect
Foreign currency derivatives
Measuring and managing foreign currency risks
Political and country risks
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||EXAM MCQ - 50 MIN - CLOSED BOOK||30|
|Examination||EXAM - 2 HOURS - CLOSED BOOK||70|
The two components of assessment are designed to provide students with the opportunity to demonstrate through a combination of written and numerical exercises their achievement of the module’s learning objectives. In particular, their ability to:
Assess and quantify exchange rate volatility and its potential impact on firms exchange rate risk
Evaluate and recommend appropriate strategies for managing the firm’s exchange rate exposure.
Evaluate the firm’s financing and investment decisions
Discuss and evaluate relevant exchange rate theories and concepts
The mid-term class test is designed to enable students to apply their knowledge of the concepts developed in class. It assesses students' understanding of basic concepts and numerical problems within a multiple choice framework. It assesses all learning outcomes of the module in a different but complementary way to the final examination setting.
The examination component of the assessment consists of both conceptual and problem-solving questions designed to assess all learning outcomes of the module. This component also helps to assess individual achievement of the learning objectives.
Formative assessment and feedback
Informal advice and discussion during lectures, seminars and meetings; responses to student emails and questions prior to submission of coursework and the exam
Suggested solutions to weekly seminar questions
Generic feedback regarding overall performance in the class test
Students will receive examination marks after marking and moderation
- The aim of this module is to provide participants with a clear understanding of the foundations of International Finance and the analytical tools and framework for making or evaluating decisions on financing, investments and currency risk management of firms that operate in a global setting. It will discuss the mechanics of currency markets, exchange rate behaviour and their impact on firms. It also introduces and applies currency derivatives to the management of firm's exposure to foreign exchange risk
|1||Discuss and evaluate the theories, concepts, principles, analytical framework and inter-disciplinary nature of international finance.||KCP|
|2||Analyse exchange rate behaviour and assess its impact on firms that operate in that environment.||KCP|
|3||Critically assess the implications of operating in an increasingly complex and dynamic international business environment.||KCP|
|4||Evaluate alternative foreign exchange risk measurement and management techniques|
|5||Assess the benefits and complications of investing and operating in foreign environments with different corporate governance systems.||KCP|
|6||Understand and evaluate various financial derivative instruments.||KCPT|
|7||Choose appropriate derivative instruments for hedging currency risk in portfolio setting and in international financial management||KCP|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 117
Lecture Hours: 22
Seminar Hours: 11
Methods of Teaching / Learning
The learning and teaching strategy is designed to allow students to come to grips with what is essentially a subject of mixed theory and caculations. A mix of teaching and learning methods will be used that includes:
Weekly 2-hour lectures and one-hour tutorials.
Regular consultation - tutors/lecturers will be available for answering questions from the students during weekly office hours
Discussion forums on SurreyLearn to address any issues related to the content, learning and teaching environment, and delivery of the module and/or specific topics.
Utilizing online materials and resources available on SurreyLearn
Support lecture material by directed reading in selected textbooks and journal articles.
Before each class session, you will be expected to have done the prescribed reading, allocated exercises and/or cases in order to be prepared for class discussion. Good participation in class and case discussion is expected
Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.
Reading list for INTERNATIONAL FINANCE : http://aspire.surrey.ac.uk/modules/manm200
Programmes this module appears in
|Corporate Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Economics MA||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Accounting and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Investment Management MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|International Financial Management MSc||2||Compulsory||A weighted aggregate mark of 50% is required to pass the module|
|International Corporate Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Economics and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2019/0 academic year.