International Finance MBA Third Sem SPPU

Syllabus

Course Code: SE FIN - 08

International Finance

Unit 1: Introduction to International Finance: Meaning/Importance, Scope, Globalization of the World Economy, Goals of International Finance, Structure and Participants of the Global Financial System, Functioning of the Global Financial System in the Globalization Process, Emerging Challenges in International Finance, Evolution of International Monetary System, International Financial Institutions: International Monetary Fund, World Bank. International Credit Rating Agencies.                                                                                                                                  (9+1)

Unit 2: Introduction to Foreign Exchange Markets: Structure of Foreign Exchange Markets, Types of Transactions and Settlement Date, Exchange Rate Quotations and Arbitrage, Interest Rate Parity, Purchasing Power Parity and Fisher's Parity, Forecasting Exchange Rates: Efficient Market Approach, Fundamental Approach, Technical Approach, Global Financial Markets and Interest Rates , Concept and Types of Currency, Convertibility of Currency, Exchange Rate: the Nature, Types and Regimes, Demand and Supply of Foreign Currency.                               (8+1)

Unit 3: The Transactions on the International Foreign Exchange Market: Spot Transactions, Forward Contracts, Future Transactions, Swap Transactions, Option Transactions, Transaction Exposure and Types, Foreign Bonds Market, Eurobonds Market, Types of Bonds, Floating Rate Notes (FRNs), Deep Discount Bonds, Zero Coupon Bonds, Dual Currency Bonds, and Equity Related Bonds, Procedure for Bonds Issues.                                          (8+1)

Unit 4: Taxation Systems and Legal Aspects: International Double Taxation and the Ways of its Regulation, Tax Evasion, Definition of Money Laundering, Organization of Money Laundering Procedure: Stages and Methods, Monitoring, International Cooperation in Dealing with Money Laundering: the Establishment of Legal Framework, The Functions and Activity of the FATF.                                                                                                    (6+1)

Unit 5: International Receivables and Cash Management: Foreign Exchange Risk, the Essence and Types of Currency Risks, Risks of Making Decisions about Foreign Direct Investment, Political Risk, International Financial Reporting Standards (I.F.R.S) and Indian Accounting Standards (I.A.S) on Foreign Transactions, Foreign Exchange Trade Settlement in India, SWIFT, CHIPS, CHAPS.                                                                             (9+1)