Module Information
Course Delivery
Assessment
| Assessment Type | Assessment length / details | Proportion |
|---|---|---|
| Semester Assessment | Group work (debate) (40 minutes) Students must take elements of assessment equivalent to those that led to failure of the module. | 20% |
| Semester Assessment | Essay (2,000 words) | 30% |
| Semester Exam | 3 Hours | 50% |
| Supplementary Assessment | Coursework (Essay) (2000 words). Students must take elements of assessment equivalent to those that led to failure of the module. | 30% |
| Supplementary Exam | 3 Hours Students must take elements of assessment equivalent to those that led to failure of the module. | 70% |
Learning Outcomes
On successful completion of this module students should be able to:
1. Analyse and evaluate the merits and demerits of various exchange rate regimes, and the opportunities that arise from intermarket arbitrage.
2. Discuss the main approaches to exchange rate determination and use insights from these to analyse potential drivers of currency crises in emerging economies.
3. Evaluate the implications of fixed and floating exchange rate regimes for macroeconomic policy, and the functioning of goods, money and assets markets.
4. Analyze the main types of currency exposures encountered by MNEs, and strategies they can use to manage such exposures.
5. Examine the instruments available to the global firm to finance its operations and consider the effects of market liquidity and segmentation on the cost of capital.
Brief description
The module provides a thorough exposure to the global financial system, notably the international monetary system, the theories and markets for foreign exchange, foreign exchange exposures and international financial arbitrage, the financing of the global firm and the determinants of foreign investment decisions.
Content
• Spot, forward, swaps and other types of forex instruments
• Intermarket arbitrage
• The role of expectations and monetary policy in the spot and forward currency markets
• Parity, balance of payments, and asset approaches to exchange rate determination
• Exchange rate forecasting
• Effect of exchange rate on the balance of trade
• Goods, money, and asset markets under fixed and floating exchange rates
• Stabilization policy
• Currency exposures and risk management for multi-national enterprise
• Market liquidity , segmentation, cost and availability of capital
• Equity and debt instruments for MNEs
• Foreign investment risks and their source
Module Skills
| Skills Type | Skills details |
|---|---|
| Application of Number | Use of and manipulation of quantitative data. Use of Refinitiv database |
| Communication | Written via essays. Verbal via participation in seminars. |
| Improving own Learning and Performance | Private study and time keeping. |
| Information Technology | Use of the internet resources; Use of Refinitiv database |
| Personal Development and Career planning | |
| Problem solving | Identify the nature of the problem, and select an appropriate solution . |
| Research skills | Use of internet and web material as well as general use of the library. Use of Refinitiv database |
| Subject Specific Skills | By following and participating fully in the module via attendance at lectures and seminars and reading the material set in the syllabus as well as reading around the subject matter. |
| Team work | Collaboration in preparation of group presentation. |
Notes
This module is at CQFW Level 7