Provide examples of how multinational corporations (MNC) reduce their translation, transaction and economic exposures.

International Finance (FIN 00126) Session 2 2016

Assignment 2


Assessment Details

Assignment due dates and the examination period provided here apply to the Australian study period and may vary for students studying elsewhere. Please confirm dates with your local tutor.


Assignment Submission

Please note that all assignments are to be submitted online via Turnitin, the assignment submission facility of the MySCU site for this unit. The link for submitting assignments are available within ‘Assessment Submission’. If you are uncertain about the submission process please contact the Student Support Team for clarification.


You must use the electronic Assignment Cover Sheet provided in the ‘Assignment Details’ section of MySCU. Download this cover sheet, fill in your details and then make this sheet the first page of your assignment – do not send it as a separate document.


Your assignments must be submitted as Word documents. If you wish to submit in any other file format please discuss this with your lecturer well before the assignment submission date.

As part of a University initiative to support the development of academic integrity, assessments will be checked for plagiarism, and stored in the database for future checking and matching purposes.


Any extension for assignment submission should be requested by email at least 48 hours before the deadline. Late submissions without prior approval will incur a penalty of 10% (of full marks) each day, including weekends.


Assignment 2: Short written response

Due: 11 pm Monday 26 September 2016 (Week 12) (or as instructed by your local lecturer)

Length: 1500 words

Weighting: 30%

Answer the following questions:


1) Provide examples of how multinational corporations (MNC) reduce their translation, transaction and economic exposures. (6 marks)


2) Explain the difference (at least 4) between foreign direct investment (FDI) and portfolio investment (PI). (4 marks)


Collect the required the data from the Australian Bureau of Statistics (ABS) website (you may also need to explore other government sources such as the Reserve Bank of Australia, Austrade, etc.) and answer the following questions:


3) List the ten largest countries by value of Foreign Direct Investment in Australian in the years 2011 and 2014. You need to provide the list of countries as well as the amount of FDI invested in AUD. (5 marks)


4) What factors do you think account for these countries investing large amounts of FDI in Australia? (5 marks)


5) Have the list of investing countries changed over the concerned period? What might account for these changes? (5 marks)


6) Do you expect a change to the 2014 list over the next 5 years? Explain. (5 marks)


The main source (theoretical) material for the assignment is in Topics 6, 7, 8, 9 and 10. Also note that exploring and identification of credible data sources is an important part of this assignment.

The assignment is expected to be of standard quality with respect to spelling, grammar, punctuation, etc. Assignment submitted must be written in your own words and it must be your own work. It should not exceed 1500 words. Severe penalties apply for assignments, which exceed the word limit. The word count excludes references, tables and figures. If the assignment exceeds the word limit, then the following mark deductions will be applied. Please note that the word limits are strictly enforced.


Excess length and penalty

Up to 5% – No deduction

More than 5% – less than15% – 2 marks

More than 15% – less than 30% – 3 marks

More than 30% – Assignment will not be marked and graded as zero


Marking Criteria

Your work will be assessed against the following criteria.

Demonstrated understanding and application of the concepts – 45%

Use of appropriate data, graphs and tables for supporting your answers – 35%

Presentation, coherency, structure, etc. including referencing accuracy – 20%

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