Course Details
Subject {L-T-P / C} : SM6122 : International Finance { 3-0-0 / 3}
Subject Nature : Theory
Coordinator : Prof. Shigufta Hena Uzma
Syllabus
International Monetary and Finance System: Corollary of International Finance, Balance of Payment and International Linkages, Balance of Payments and its Components, International Flow of Goods, Services and Capital. International Financial System & the Market for Foreign Exchanges: Determining Exchange Rates, Fixed and Flexible Exchange Rate System, Exchange Rate Theories, Participants in the Foreign Exchange Markets, Exchange Rate Quotes, Factors Affecting Exchange Rates, Foreign Exchange and Currency Possession, Foreign Exchange Trades. Foreign Exchange Market in India: Determination of Exchange Rates- PPP & IRP, Evolving Floating Rate, International Parity Conditions, Interest Rate Parity, Exchange Rate Forecasting. Managing Foreign Exchange Risk: Transaction Exposure and Economic Exposure, Pricing Policy, Asset and Liability Management and Techniques, Currency Derivatives, Forwards, Swaps & Currency Options, Currency & Interest Rate Futures, Currency Trading and Risk, Currency Unwinding, Interest Rate Risk Management. International Investment & Financing: Financing the Global Firms, Foreign Investment Decisions, International Trade Finance, Transfer Pricing. International Investors and Foreign Investment Institutions: International Financial Markets & Instruments, International Institutions, Dimensions of International Trade, Counter Trade, The Institution Regulating International Trade.
Course Objectives
- To understand the concept of trade and investment under the preview of international finance
- To learn about the BoP and its components.
- Determination and valuation of foreign exchange.
- To analysis the impact of financial derivatives on foreign exchange risk and exposure.
Course Outcomes
The course will introduce students to global financial markets and operations of multinational firms. It will also provide students with knowledge of and competence in identifying the nature of Foreign Exchange Risk and main types of Foreign Exchange Exposure that company face, as well as in using main techniques of equivocation foreign exchange risk.
Essential Reading
- Eiteman, D. K., Stonehill, A. I., & Moffett, M. H., Multinational Business Finance, PHI Pvt. Ltd.
- Apte, P. G., International Financial Management Text and Cases, Tata McGraw Hill Education Pvt. Ltd.
Supplementary Reading
- Levi, M. D., International Finance, Routledge.
- Gandolfo, G., International finance and open-economy macroeconomics, Springer.