ECF6310 International Finance
Final Assessment (On- & Off-campus)
Semester 1, 2024
Individual Foreign Currency Valuation Analysis
(This assessment is worth 40% of your final grade for this unit)
Instructions:
1. It is an individual-based assessment, like a mini research project, and not an exam. You may refer
to whatever references and materials for your analysis.
2. You will need to complete this assessment individually, and answer all the questions stated in the
assessment. Please read carefully the instructions, rubric, assessment criteria, and the assessment
questions before start.
3. Total word limit for the assignment is maximum 2000 words. This assignment may take 3-4 hours
to complete, however I will make the Turnitin link available for you to submit your answers within 72
hours to accommodate the challenges associated with different time zones and working
hours/schedules both on-campus and off-campus students face.
4. Type your full name and ID on the cover page or at the top of the first sheet of your answers, and
write your answers in Microsoft Word. Save your file and Use your full name in the file name.
5. You only need to submit the assignment once via the Turnitin submission link in
Assignments/Canvas, and you will NOT receive a similarity report.
What You Need to Do: Answer all the questions that follow
Consider the following three currency pairs: AUD/CNY, AUD/USD and EUR/AUD, where AUD stands for
the Australian dollar, CNY is the Chinese currency Yuan, EUR refers to euro, and USD for the US dollar.
1. Conduct an analysis of the recent exchange value dynamics of these three currency pairs (since
January 2019) given the recent global events and the recent period of high stress in world
economies and markets (cite the precise factors and events), and assess the impacts of the current
COVID-19 pandemic and the Russia-Ukraine War on the movements of the above currency pairs.
You may refer to your own currency trading experience if you have. Maximum word limit: 500 Words
(PGCLO2.1 & 2.4).
2. Are CNY, EUR and USD performing better or worse than AUD in terms of current global market
conditions and future economic prospects? Based on your analysis, construct a capital investment
plan including a hedging strategy for Australian multinational corporations (MNCs) operating into
these countries, i.e. China, the eurozone and the United States. Maximum word limit: 500 Words
(PGCLO2.1 & 2.2).
3. Advanced Power Pty Ltd has been manufacturing Australia’s largest range of portable power
generators under the Advanced Power brand for over 20 years. It exports portable and commercial
generators and control systems to Italy but the recent strong AUD against the euro hurts their sales
in Italy. In the Italian market, Advanced Power faces competition from the Germany and French
portable generators makers, whose operating currencies are the euro. What kind of measures
would you recommend so that Advanced Power Pty Ltd can maintain its overall market share, and
in particular, its market share in Italy. Approximate word limit: 500 Words (PGCLO2.3 & 2.4).
https://www.coursehero.com/file/234387988/Final-assignment-Finance-1pdf/
, School of Business and Law
4. CSL Limited is an Australian multinational specialty biotechnology company that researches,
develops, manufactures, and markets products to treat and prevent serious human medical
conditions. CSL has just received an order from a large wholesaler in Germany for AUD3,200,000 of
its products on April 26, 2024, conditional upon delivery being made in three months’ time and the
order invoiced in euros.
This study source was downloaded by 100000886959103 from CourseHero.com on 06-22-2024 03:41:15 GMT -05:00
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