Department of Finance
Trimester 2, 2019
Assignment Part 1
Report
DUE DATE AND TIME: Sunday, September 22 nd ,
2019 at 11.59pm
PERCENTAGE OF FINAL GRADE: 25% for Group Report
5% for Individual
Reflective Statement
GROUP ASSIGNMENT: 3 members
GROUP REPORT: 3000 words
Learning Outcome Details
Unit Learning Outcome (ULO) Graduate Learning Outcome
(GLO)
ULO 2: Critically analyze and evaluate exchange rate
determination and risk exposure management of
business financing and investment activity. Consider
these impacts on multi-national companies and
countries, in order to review and implement
appropriate risk management strategies
GLO 1: Discipline specific knowledge
appropriate to the level of study
related to a discipline or profession
GLO 4: Critical thinking – evaluating
information using critical and analytical
thinking and judgment
ULO 3: Demonstrate individual accountability in
collaboratively planning and implementing a research
based team-project
GLO 1: Discipline specific knowledge
GLO 7: Team Work – working and
learning with others from different
disciplines and backgrounds
Hence, successful completion of this assignment will show that you can:
 identify core issue(s) to research within a specific topic area
 gather information from a range of credible sources
 critically analyze and synthesize relevant information
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 write a clear and coherent academic report presenting a well-
informed perspective on the issue(s) defined
 use and reference information sources accurately in the Deakin Harvard
style.
 work in a team and collaboratively plan and implement a research
based team-project. You will demonstrate accountability in this process
by writing and submitting an individual reflective statement (Part 2 of the
assignment).
Assignment requirement and objective
This assignment requires the following to be completed and submitted:
1. A team report (Part 1) consisting of approximately 2500-3000 words that has
been undertaken collaboratively and combined into one business report worth
25%.
2. An individual reflective statement (Part 2) of 500 words that evaluates and
reflects on the team process and how it worked – see Assignment Part 2
instructions (in a separate document) worth 5%.
The aim of this assignment is to encourage students to apply their learning in
international finance to current issues within the global environment and write a
formal group report. This assignment gives you an opportunity to work within a team
to evaluate the BREXIT decision and its impact on both Britain and the EU.
Assignment Instructions
1. Style – Your assignment must comply with the formal report style. This
means that you need to devise section headings appropriate to the material
you will cover. If you don’t know what an Executive Summary and a Letter of
Transmittal is, please check online, so you know what format it should take.
2. The structural elements are not included in the word count, but are
required in your report and consist of:
– Executive Summary
– Letter of Transmittal
– Referencing and reference list
You will find a report format for this assignment on the CloudDeakin site. For
more information on report writing, go to:
http://www.deakin.edu.au/students/study-support/academic-
resources/report-writing.
3. Management of team tasks – There are a number of ways your team can
manage the required tasks. For example, your team can require each student
to research and write-up some sections of the report. Or you can determine
that you will work more co-operatively on all areas together.
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4. Individual Assessment Statement – must be submitted and will document
how the team functioned and how roles and responsibilities were allocated.
See Part 2 instructions.
Submission Instructions
1. The report is to be uploaded/submitted ONLINE ONLY by 11.59pm 22
September 2019. A single report for the group as a whole must be
submitted into the Dropbox available on the MAF306 Cloud Deakin site, via
Assignment Part 1 Dropbox. The assignment drop box will not become
visible to you until you have created a group and a group member has
completed the plagiarism statement!
2. Instructions on how to upload your individual reflective statement for
assessment will be provided in the Assignment Part 2.
3. Team details (team number, members’ names and IDs) must be provided
with this assignment on the front page. These should be included in the
message area of the Assignment Dropbox.
Assignment Group formation and registration
 This is a team assignment. Each team consists of 3 persons.
 You need to form YOUR OWN team and REGISTER your team in the Cloud
Deakin site. Under the tab “More” you will find Groups, click on this and it
takes you to the Group folders were you will self-enrol in a numbered box
with your team members. There are private discussion and group lockers
attached to your CloudDeakin group (where you can share documents,
resources and “talk” privately with your team members).
Late submission
In accordance with University’s policy, the following marking penalties will apply if
you submit an assessment task after the due date without an approved extension:
5% will be deducted from available marks for each day up to five days, and work
that is submitted more than five days after the due date will not be marked. You will
receive 0% for the task. ‘Day’ means working day for paper submissions and
calendar day for electronic submissions. The Unit Chair may refuse to accept a late
submission where it is unreasonable or impracticable to assess the task after the due
date.
Extensions can only be approved by the Unit Chair. Extensions can be granted for
documented serious illness (not just on the day the assignment is due!) or for
compassionate reasons under extenuating circumstances. The unit chair can ask to
see how much work has been completed before granting an extension. Work or
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holiday reasons are NOT grounds for an extension – you are expected to manage
these issues as part of your studies.
You are strongly encouraged to start early and to continually backup your
assignment as you progress. Computer crashes or corrupted files will NOT be
accepted as valid reasons for an extension of any length.
For further information about Special Consideration, visit
http://www.deakin.edu.au/students/assessments/special-consideration
Assessment Feedback
Students who submit their work by the due date will receive their marks and
feedback within 15 business days of the due date.
Referencing
You must correctly use the Harvard style of referencing in any written elements
of this assessment.
You can check what is required here by using student resources online at:
http://www.deakin.edu.au/current-students/study-support/study-
skills/handouts/authordate-harvard.php
OR
www.deakin.edu.au/students/study-support/ referencing/harvard.
Academic Integrity, Plagiarism and Collusion
Plagiarism and collusion constitute extremely serious breaches of academic integrity.
They are forms of cheating, and severe penalties are associated with them, including
cancellation of marks for a specific assignment, for a specific unit or even exclusion
from the course. If you are ever in doubt about how to properly use and cite a
source of information, consult your lecturer or the Study Support website
http://www.deakin.edu.au/students/study-support/referencing
 Plagiarism occurs when a student passes off as the student’s own work, or
copies without acknowledgement as to its authorship, the work of any other
person or resubmits their own work from a previous assessment task.
 Collusion occurs when a student obtains the agreement of another person for
a fraudulent purpose, with the intent of obtaining an advantage in submitting
an assignment or other work.
Work submitted may be reproduced and/or communicated by the university for the
purpose of assuring academic integrity of submissions
(http://www.deakin.edu.au/students/study-support/referencing/academic-integrity
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Report Requirements
Context:
The UK voted to leave the European Union (EU) on June 23 rd  2016 by a majority
of 51.9 to 48.1 per cent, with a voter turnout of just under 72 per cent. This set
the UK on course to leave the EU. The triggering of Article 50 of the Lisbon
Treaty started the formal two-year process, which determined that the UK will
leave the EU on March 29 th , 2019. The British Government has a legal obligation
under the UK’s 2018 European Union (Withdrawal) Act, which says such a vote
must take place “before the European Parliament decides whether it consents to
the withdrawal agreement being concluded on behalf of the EU”.
1. Norway is in a close relationship with the EU but is not a member. The
‘Norway Model’ has been floated as a possible ‘plan B’ for BREXIT. Discuss
the ‘Norway Model’ and pre-Brexit UK relationship with the EU. Suggest
whether the ‘Norway Model’ would suit the UK better than a no-deal scenario
in terms of economic benefit (GDP, inflation, unemployment, interest rates
and exchange rates).
[10 marks]
2. The BREXIT decision in 2016 created a historic event as no country has
exited the European Monetary Union since its inception in 1999. In the
process, it caused significant uncertainty and disruption to markets.
Consider the UK, Germany and Spain and assess the effects on their
economic data with particular reference to exchange rates and stock prices,
for the period between January 01, 2016 and December 31, 2016. (Utilise
graphs and data to provide evidence for your discussion).
[10 marks]
3. The BREXIT decision has had wide-reaching effects on international financial
markets in the lead up to the March 29, 2019 vote. Discuss the impact of the
four possible exit scenarios modelled by the Bank of England (close, less
close, disruptive and disorderly) on the Britain-EU economic partnership –
with particular reference to UK’s Trade Openness (measured as the ratio of
Export+Import/GDP) and Pound Sterling exchange rates against Euro and
US dollar for the period between financial/fiscal year 2016 and 2018. [Hint:
use yearly data for the trade openness and high (e.g., daily) or medium
(e.g., monthly) frequency data for the exchange rates. Acceptable FY:
March-April or January-December].
[10 marks]
You also need to write an “Introduction” and “Conclusion” for the report.
Introduction must not exceed 200 words and conclusion must be limited to
150 words. Since there are no rubrics for these two small sections, the
lecturer/tutor/marker will apply her/his discretion in overall comment and marking
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the report. For your guide, in the Introduction section, you can highlight the aim of
this report/assignment, the methodology you used, summary of your findings and
the structure of the report. And, in the Conclusion section, you can highlight the
implications/significance of your research findings.
References
– Why a no-deal Brexit is nothing to fear
https://www.spectator.co.uk/2018/08/whos-afraid-of-the-wto/ [Accessed Feb
15, 2019]
– Brexit explained: What is the Norway model and is it an option for the UK?
https://www.irishtimes.com/news/world/europe/brexit-explained-what-is-the-
norway-model-and-is-it-an-option-for-the-uk-1.3712387 [Accessed Feb 15,
2019]
– What is the Norway Model and can it solve Brexit?
https://www.bloomberg.com/professional/blog/norway-model-can-solve-
brexit/[Accessed Feb 21, 2019]
– Brexit: What is the Norway model? https://www.bbc.com/news/uk-46024649
– EU withdrawal scenarios and monetary and financial stability A response to
the House of Commons Treasury Committee November 2018
https://www.bankofengland.co.uk/-/media/boe/files/report/2018/eu-withdrawal-
scenarios-and-monetary-and-financial-
stability.pdf?la=en&hash=B5F6EDCDF90DCC10286FC0BC599D94CAB8735DFB
[Accessed Feb 21, 2019]
– Current articles –The Age, The Australian Financial Review, The Economist
– Websites like the RBA, IMF, Bank for International Settlements, European
Central Bank
– Eiteman, D., Daly, K., Rath, S., Stonehill, A., and Moffett, M., (2011)
Multinational Business Finance, Pearson Addison-Wesley, NSW. Ch 2.
– Shapiro, A., (2014) Multinational Financial