Reference no: EM131498810 , Length: word count:3000

Principles of International Business Finance Assessment

Background

Suppose that you are required to provide advice on international financial derivatives to the CEO of a particular listed company in Australia that incorporates the following key aspects:

1. Explain why this listed company needs to consider international financial derivatives based on their current situation.

2. Identify what the potential foreign exchange risks are to this company. Suggest how to manage those risks.

3. Design two practical plans/schemes involving international financial derivatives for this listed company.

4. Discuss the benefits and limitations of accepting these two practical plans/schemes.

Requirements

You are required to write a professional report (maximum 3000 words) in which you apply relevant or necessary knowledge learnt so far from the course BUSS 5314. A pure theory report or general writing will not meet the purpose of this assessment.

Your report should be compiled as follows:

Title page

Executive summary: (suggested 400 words)

a. Choose one publicly-listed company that you are interested in (one suggested source of Australian listed companies is the 'Australian Securities Exchange' (ASX) website.

b. Briefly introduce the company's background, major products or services, location, major market advantages and challenges in both the domestic and international environments, and any economic or finance issues that are relevant to discussion in the Middle section.

Introduction: (suggested 400 words)

Set an interesting 'scene' by highlighting the main issue and discuss your motivations for writing this report.

Middle section: (suggested 1700 words)

This is the main body of your report. You need to fittingly address ALL the key aspects outlined in the 'Background' section. Within this middle section, you can use your own subheadings such as Current Situation Analysis, Potential Foreign Exchange Risk and Management, and Practical Plan.

a. Collect relevant data including current financial data/reports and ratios on the company you chose from databases, including the websites of the Australian Securities Exchange (ASX), Australian Bureau of Statistics (ABS) and Reserve Bank of Australia (RBA), and the 'Thomson One' financial database from the UniSA Library databases section.

b. Based on the data collected, organise empirical evidence in tables and/or graphs where appropriate to justify your arguments.

c. Address key aspects 1 and 2 outlined in the 'Background' section under the unique contexts of the company.

d. To address the aspect 3 outlined in the 'Background' section, select only two international financial derivatives from the following list:

1) Currency Forwards

2) Currency Futures

3) Currency Swaps

4) Currency Options

Demonstrate how these two financial derivatives work (the procedures) in the real word by providing examples with real data (numbers/figures) you can collect. Only under circumstances where despite your efforts the data (numbers/figures) is/are still missing or unattainable, are you allowed to use conceived/assumed data (numbers/figures) to secure the completion of the task.

Important notes: You should not copy any examples used in the textbook or lecture notes. If you do so, you will receive zero marks for this section.

e. To address key aspect 4 outlined in the 'Background' section, compare two practical plans/schemes using the financial derivatives, and provide discussion on your own thinking about their benefits and limitations.

Conclusions: (suggested 500 words)

Summarise your overall suggestions and discuss possible limitations.

References: UniSA Harvard style.

Appendix: Include any necessary materials that support your report.