International Finance
International Finance
International Finance
INTERNATIONAL FINANCE
Subject
Course Code
Semester
Credit Hours
Batch
Faculty
: International Finance
:
: PGDM- (Trimester-VI)
: 04
: 2013-15
: Dr.U. Padmavathy
Course Objectives:
Financing issues for firms with business in foreign countries
Balance of Payments defined and Flow of Funds analysis
Exchange Rate theories and analysis
Risk Exposures for a Multinational Firm
Measures for Risk Control across borders
Methods of short term & long term financing for expansion and operations
Cash Management techniques for the MNC
Unit-I Introduction to International Finance: A view of International financeImportant trends in globalization -Various aspects of international finance - Importance
of international finance - Emerging challenges - Balance of payments- its implications
and components. Issues and Dimensions - International Monetary system - Exchange
rate regimes - Fixed Exchange rage - Flexible exchange rate - Hybrid systems of
exchange rates.
Unit-II Theories of Exchange Rates: Interest Rate Parity Theorem - Absolute
Purchasing Power Parity Theorem - Relative Purchasing Power Parity Theorem International Fischer Effect - Foreign Exchange market - The Foreign Exchange market,
participants - Information & Communication Systems - Payment systems, Market Terms
- Cash and spot Exchange markets - Inter-bank markets and mechanics of spot
exchange quotations - Direct Vs Indirect exchange - Cross exchange rates - Forward
market characteristics - forward premiums and discounts
Unit III Foreign Exchange Derivatives Markets: Derivatives - Currency and interest
rate futures and their applications - Currency swaps - Link between futures and forward
markets - Foreign currency and interest rate options - Option pricing models - Difference
between forwards, futures and options - Foreign Exchange Exposures - Transaction
Exposure - Economic Exposure - Translation Exposure - Foreign Exchange Exposure
Management using Derivatives.
Unit IV International Trade Finance: International Payments methods - On Account Letter of Credits - Documentary Credits - International Trade Finance methods Forfeiting - Factoring Pre-shipment & Post-shipment Export Finance - L/C Financing -
VISHWA VISHWANI
Institute of Systems & Management
International Trade Documents - Bill of Lading - Invoice - Packing List - L/C - Drafts
Insurance - Inspection Certificate etc.
Unit V Multinational Capital Budgeting: Concept & Issues in MNC Capital Budgeting
- Techniques of Evaluation of MNC Capital Budgeting - Multinational working capital
Management - Multilateral International Funding Agencies - International Monetary Fund
(IMF) - World Bank (WB) - International Finance Corporation (IFC) etc. Long Term
Sources of Finance in Intl financial Markets: Euro syndicated loans - Euro revolving
Line of credit - Medium term notes Euro bonds GDRs (Global Depositary Receipts)
- ADRs (American Depositary Receipts) - FCCBs (Foreign Currency Convertible
bonds).
Suggested books:
Websites:
www.Quickmba.com
http://www.riskglossary.com/
http://management.about.com/
http://highered.mcgraw-hill.com
www.investopedia.com
Journals:
FORTUNE.
Fortune India.
The Economist.
Capital Market.
Dalal Street.
Money Today.
Business Outlook.
The Management Accountant.
Chartered Financial Analyst
Journal of Financial Management