BUSN9241 International Business Finance and Banking

2016

4.5

1 x 3-hour seminar weekly

BUSN9216 has been successfully completed

Master of Accounting; Master of Business Administration; Master of Accounting and Finance, Master of Business (all Specialisations).

The topic introduces students to international business & banking transactions and their impact on financial decision-making within an organisation having an international perspective. The topic will include study of the international monetary system and foreign exchange rate determination, foreign exchange risk analysis and management, international investment decisions and the financing of international business operations.

The focus of this topic is the financial management environment and issues faced by international business enterprises because of their international operations. Many financial management issues are common to domestic and international businesses. Businesses with international operations have available to them economic advantages and opportunities that are not available to enterprises which only operate in domestic economies. International businesses also face additional risks because of the cross-border nature of their business. Taking advantage of these opportunities and managing these additional risks with the financial markets and banks are a recurring theme through the topic. Emphasis will be given to managing the multinational corporation and banks, but many of the issues discussed in the topic are also relevant for firms with more restricted international business dealings.

Specific learning outcomes for the topic include being able to:

• discuss the nature, characteristics and economic importance of multinational corporations
• explain how exchange rates are determined and the different exchange rate systems faced by international business dealings
• distinguish different types of international transactions, such as trade and capital flows, and their economic consequences
• discuss the factors affecting foreign exchange rates
• compare and contrast different ways for managing foreign exchange risk
• calculate the cost of capital for foreign investments
• explain capital budgeting in a multinational corporation
• describe the features of international banking and liquidly management through global financial markets