FINS5516 International Corporate Finance - 2019

6 Units of Credit
Banking & Finance
This course outline is for the current semester. To view outlines from other years and/or semesters, visit the archives

1. Course Details

Summary of Course

This course provides students with the basic theoretical and practical knowledge required for the management of financial functions of firms operating in several countries. This includes necessary theory and evidence basic to an understanding of international capital and foreign exchange markets, the benefits of international diversification, use of the capital asset pricing model in foreign investment decisions and cost of capital for multinational corporations, financial management of multinational corporations, foreign direct investment and financial and political risks, the role of multinational banks and the financial benefits of Euro-currencies and Euro-bonds, and international equity markets and financial management of multinational corporations in regions such as ASEAN, APEC, NAFTA, and the EU.


Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

The basic thrust of this course is to provide a conceptual framework within which the key financial decisions of the multinational companies can be analysed. Furthermore, the recent global financial crisis and some of the European financial challenges and their implication for companies and investment environment are analysed. The approach is to treat international financial management as a natural extension of the principles learned in a foundation course in finance and then relate it to global financial market. The International Finance course first considers the environment of international financial management including issues affecting the recent global financial crisis, emphasizing the determination of exchange rates and their interaction with interest rates and other financial prices. We then analyse international securities markets before turning to consider the risks of multinational operations, and investment, and financing decisions as they are made by a multinational entity. The final section of the course covers multinational financial management. As part of the discussion of the above topics, a number of current international issues such as financial globalisation, the European financial challenge and the European fiscal convergence, international implications of the sub-prime credit problems, securitisation, sovereign wealth funds, Asia-Pacific financial markets, ASEAN plus 3 and 6, global trade imbalances and global financial stability will be discussed. This course could be taken as one of the four elective specialisation courses for all students who wish to graduate with finance specialisation in the MCom. The course is relevant to a broad range of professions including corporate treasury management, corporate finance, international securities trading and investment management.

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeProfFariborz Moshirian Room: ASB, Room 3169385 5859Consultation Times – Please email

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course


This course provides students with the basic theoretical and practical knowledge required for the management of financial functions of firms operating in several countries. This includes necessary theory and evidence basic to an understanding of international capital and foreign exchange markets, the benefits of international diversification, use of the capital asset pricing model in foreign investment decisions and cost of capital for multinational corporations, financial management of multinational corporations, foreign direct investment and financial and political risks, the role of multinational banks and the financial benefits of Euro-currencies and Euro-bonds, and international equity markets and financial management of multinational corporations in regions such as ASEAN, APEC, NAFTA, and the EU.


Learning Activities and Teaching Strategies

This course is a combination of formal lectures and  individual and group assignment. The lectures are used to explain concepts and to give real life examples of situations in which these concepts are used. The assignments are designed to ensure that the practical aspects of this course are well understood and applied.



5. Course Resources

The website for this course is on Moodle at:

Required textbook:

Prescribed text: Shapiro, A.C. (2014), Multinational Financial Management, 10th Edition, Wiley.

Other Highly Useful Texts Include:

Eiteman, D.K., A.I. Stonehill and M.H. Moffett (2016), Multinational Business Finance, 14th Edition, Addison-Wesley. Butler, K.C., Multinational Finance (South-Western College Publishing, 2016, 6rd edition).

Resources available on the Web include:

  • There are video of lectures for each of the relevant chapters that are covered in this course. You can watch these lectures on Moodle anytime that suits you. (see the Moodle). These lectures are a great replacement for the live lecture, as they have been recorded very recently for the purpose of this course. Students should use the PPT (under the category called CHAPTERS) when they watch the videos. I cover all the relevant materials for each chapter, page by page, using the PPT slides that are under the category called Chapters.
  • The power-points from the textbook (i.e. Power-Points from Shapiro). You will note that the power points (called Chapters) include graphs and tables from the textbook. I recommend that students use these materials when they watch the Videos and in their own study of the materials included in this course.
  • Solutions to the Problems found at the end of each relevant chapter in the Prescribed Textbook (i.e. Shapiro).
  • Important notices, a message board and other forms of communication.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.


7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit:
Week Activity Topic Assessment/Other
: Lecture 1


Chapter 01: Introduction (pages 2–45)

: Lecture 2

Foreign Exchange Markets and Key Relationships

Chapter 07: The Foreign Exchange Market (pages 256–277)

Chapter 02: The Determination of Exchange Rates (pages 52–74)

o i.e. until Section 2.3 The Fundamental of the Central Bank Intervention

: Lecture 3

Foreign Exchange Markets and Key Relationships

Chapter 04: Parity Conditions in International Finance (pages 138–178)

o NOTE: This chapter is covered in-full and is a particularly important chapter

Chapter 08: Currency Futures and Options Markets (only pages 280–293)

o i.e. until Currency Spread

: Lecture 4

Foreign Exchange Risk Management

Chapter 03: The International Monetary System (only pages 88–104)

o i.e. until the Bretton Woods System

Chapter 05: Balance of Payments & International Economic Linkages (pages 183–199)

o i.e. until Section 5.3 Coping with the Current Account Deficit

: Lecture 5

Foreign Exchange Risk Management

Chapter 11: Measuring & Managing Economic Exposure (only pages 379–393 & 401–416)

See course notes/slides on Moodle

: Lecture 6

International Corporate Finance

Chapter 09: Swaps and Interest Rate Derivatives (pages 312–316 & 324–332)

o i.e. exclude Currency Swaps and exclude Dual Currency Bond Swaps

Chapter 12: International Financing & National Capital Markets (only pages 422–453)

: Lecture 7

International Corporate Finance

Chapter 13: The Euromarkets (only pages 455–468)

o i.e. until Section 13.3 Note Issuance Facilities & Euronotes

• Sovereign Wealth Funds & the G20 (see Moodle PPT file for readings)

: Lecture 8

International Corporate Finance

Chapter 14: The Cost of Capital of Foreign Investments (only pages 476–496)

o i.e. until Section 14.6 Valuing Low-Cost Financing Opportunities

Chapter 15: International Portfolio Investment (only pages 508–531)

: Lecture 9

International Corporate Finance

Chapter 15: Continued

Chapter 16: Corporate Strategy and Foreign Direct Investment (only pages 535–551)

Chapter 17: Capital Budgeting for Multinational Corporations (only pages 554–564)

o i.e. until Section 17.3 Foreign Project Appraisal

: Lecture 10

International Corporate Finance

Chapter 20: Managing the Multinational Financial System (only pages 643–669)

Chapter 06: Country Risk Analysis (only pages 214–252)

International taxation issues

: Lecture 11

International Corporate Finance

Continuation of Lecture 10’s material on global taxation issues and the way multinational

corporations structure their tax and issues related to tax havens. Issues related to G20 and

global financial stability

See Moodle PowerPoint files & corresponding lecture videos for this topic

: Lecture 12

International Corporate Finance

Global Financial Stability and Forces Governing Global Finance

See Moodle PowerPoint files & corresponding lecture videos for this topic

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.



UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.

Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.


UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz:


The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at:

For UNSW policies, penalties, and information to help you avoid plagiarism see: as well as the guidelines in the online ELISE tutorials for all new UNSW students: For information on student conduct see:

For information on how to acknowledge your sources and reference correctly, see: If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.

Student Responsibilities and Conduct

Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.


It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload


Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.

Student Support and Resources

The University and the Business School provide a wide range of support services and resources for students, including:

Business School Education Quality and support Unit (EQS)
The EQS offers academic writing, study skills and maths support specifically for Business students. Services include workshops, online resources, and individual consultations.
Level 1, Room 1033, Quadrangle Building.
02 9385 7577 or 02 9385 4508

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning Centre
The UNSW Learning Centre provides academic skills support services, including workshops and resources, for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
02 9385 2060

Educational Support Service
Educational Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process. Check their website to request an appointment or to register in the Academic Success Program.
John Goodsell Building, Ground Floor.
02 9385 4734

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
02 9385 3331

UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333

Disability Support Services
UNSW Disability Support Services provides assistance to students who are trying to manage the demands of university as well as a health condition, learning disability or who have personal circumstances that are having an impact on their studies. Disability Advisers can arrange to put in place services and educational adjustments to make things more manageable so that students are able to complete their course requirements. To receive educational adjustments for disability support, students must first register with Disability Services.
Ground Floor, John Goodsell Building.
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
02 9385 5418

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