International Finance

Paper Code: 
MIB 421
Credits: 
4
Contact Hours: 
60.00
Objective: 

The purpose of paper is to give students an in-depth knowledge of International Business Environment with a special emphasis on position of India in the era of Globalization. In addition, it provides an exhaustive study of functioning of International Organizations with their relevance towards International Trade.

12.00
Unit I: 
Exchange rate system

Fixed exchange rates ,Floating exchange rates, Current exchange rate regime-Pegged exchange rate, crawling peg, Managed floating ,Convertibility of Rupee-Current account convertibility, capital account convertibility

13.00
Unit II: 
Foreign Exchange Market

 Features, participant, segments, Functions, Foreign exchange rates-Direct quote, Indirect quote, Bid/ask rate, cross rates; Methods of affecting international payments; Dealings on the foreign exchange market-Spot and forward transactions, Futures, Options and Swaps, arbitrage; Foreign currency accounts-Nostro, Vostro and Loro Accounts; networks for international transactions-SWIFT,CHIPS

10.00
Unit III: 
International Financial Market instruments

ADRs, GDRs, Types of international bonds, Short and medium term instruments-Euro notes, Euro Commercial papers, medium term Euro notes, concept of LIBOR and LIBID

14.00
Unit IV: 
The Balance of Payments

 Introduction,  Components of BOP, Balance of Payment Vs. Balance of Trade (BOT), Disequilibrium of BOP, Measures to control BOP, Balance of Payment Accounts Of India.

11.00
Unit V: 
International Investments

Types of foreign private investments- Foreign Direct Investment and Foreign Portfolio Investments, significance of foreign investments, factors affecting international investment, Limitations and dangers of foreign capital, Cross border M&A’s- Indian scene.

Essential Readings: 
  • Sharan V, “International Financial Management”, PHI, 5th edition
  • Jeevandam C, Foreign exchange & risk management, Sultan Chand & Sons, 10th Edition
  • Cherunilam Francis, “International Business”, PHI, 5th edition
References: 
  • Avadhani,V.A,” International Finance, Theory and Practice”, Himalaya Publishing Company, New Delhi.
  • Maurice, Levi, “International Finance”, McGraw Hill, Int. Ed. New York.
  • S.K. Mathur, “International Trade and Finance”, Shivam Book House, Jaipur.

 

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