International Financial Management

Syllabus

Course Code: MBAT 414

 International Financial Management

Unit 1

Financial Management in Global Perspective: Development in the International Monetary System, Gold Standard, Brett on Woods System of Exchange Rate, Exchange Rate Regime, IMF and International Liquidity, System of Exchanging Currencies.

Exchange Rate Determination :Determination of Exchange Rate in Spot and Forward Market, PPP Theory, IRP Theory, Monetary Theories of Exchange Rate Determination, Overshooting Models.

Unit 2

Foreign Exchange Market

Structure; Spot and Forward, Participants in Foreign Exchange Market-Arbitraging, Hedging and Speculation, Covered Interest Rate Arbitrage, Borrowing and Investing Markets. Fisher’s Effect.

Unit 3

Risk Exposures and Their Management

Translation, Transaction and Operating Exposures: Their Measurement and Management, Political Risk.

Unit 4

Financial Foreign Operations

Internationalisation Financial Markets, Euromarkets, Special Financing Vehicles, Designing a Global Financial Strategy.

Unit-5

International Financial Markets: International Equity Issues and Long Term Borrowings. GDRs, ADRs and Euro Bonds. International Development Banks, Foreign Currency Financing by Indian Financial Institutions.

Multinational Working Capital Management: Management of Cash, Inventory and Accounts Receivable in Global Context, Inter–Company Fund Flow Mechanism, Short Term Financing. Financing of
International Trade.