Module code: MANM200

Module Overview

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.

Module provider

Surrey Business School

Module Leader

VELEANU Veronica (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 117

Lecture Hours: 22

Seminar Hours: 11

Module Availability

Semester 2

Prerequisites / Co-requisites


Module content

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 pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test EXAM MCQ - 50 MIN - CLOSED BOOK 30
Examination EXAM - 2 HOURS - CLOSED BOOK 70

Alternative Assessment

Not applicable

Assessment Strategy

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

Module aims

  • 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

Learning outcomes

Attributes Developed
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

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

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
Upon accessing the reading list, please search for the module using the module code: MANM200

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Corporate Finance MSc 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
Economics MA 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
International Corporate 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.