International Trade and Finance

Paper Code: 
IBG 217
Credits: 
3
Contact Hours: 
45.00
Objective: 

The objective of the course is to impart knowledge with regards to the basic concepts of International trade and Finance

9.00
Unit I: 
Foreign Exchange Market

Meaning, Features, Participants, Functions, Types of transactions-Spot, Forward, Swaps; Quotations in interbank markets-Two way quotations, Cross rates, Direct & Indirect quotes, American & European quotations

9.00
Unit II: 
Foreign Exchange Rate

Meaning, Types- Fixed Vs. Flexible, Spot Vs. Forward, Favorable Vs. Unfavorable; Theories of Exchange Rate- PPP Theory, BoP Theory.

9.00
Unit III: 
Trading Environment

Free Trade-Meaning, Advantages, Disadvantages
Protection- Meaning, Arguments for Protection, Protective devices

9.00
Unit IV: 
Regional Economic Integration

Concept, NAFTA, SAARC, OPEC, ASEAN, European Union

9.00
Unit V: 
International Payment System

Features, Need, Methods- Telegraphic Transfers, Mail Transfers, Banker’s Drafts, Personal Cheque, Traveler’s Cheque, Bills of Exchange, Letter of Credit, other means of International Payments.

Essential Readings: 

• S.K. Mathur, “ International Trade and Finance”, Shivam Book House, Jaipur.
• C Jeevanandan, Foreign Exchange & Risk Management, Sultan Chand & Sons
• P Subba Rao : International Business(Text and Cases) , Edition 4, Himalya Publication House, Mumbai
• Avadhani,V.A,” International Finance, Theory and Practice”, Himalaya Publishing Company, New Delhi.

Academic Year: 
2019-2020
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