International Financial Management

Syllabus

M-311: International Financial Management

UNIT I

Introduction to International Financial Management: Concept, Institutional Framework in IFM. Recent Trends and Challenges in International Finance, Evolution of International Monetary System.

UNIT II

Exchange Rate Regimes: Different Exchange rate regimes. Exchange Rate Mechanism.

International Payments Gateway, Exchange Risk
Management – Hedging.

UNIT III

International Investment Strategies: FDI and Portfolio Investment. International Financing Sources and Cost of Foreign Borrowings. Cross Currency Management.

UNIT IV

Balance of Payments: Concept, Items, Types of Transactions, Types of Accounts and Significance of BOPs: Disequilibrium in BOPs: its Types. Remedial Measures for Correcting Disequilibrium in BOPs – J Curve Effect.

UNIT V

International Financial Market Instruments: ADRs, GDRs, Foreign Bonds, Euro Bonds, Floating Rate Notes, Global Bonds, Convertible Bonds, Short- and Medium-Term Instruments – Euro Notes, Euro Commercial Papers, Medium Term Euro Notes.

UNIT VI

Foreign Exchange Rate: Meaning, Types and Determinants of Foreign Exchange Rate, Spot Market and Forward Market. The Real Exchange Rate, Real Effective Exchange Rate (REER), Cross Rates.

UNIT VII

Exchange Rate Determination: The Purchasing Power parity (PPP) Theory, The Absolute Form and the Relative form, The Fisher Effect (FE) Theory (Open and Closed Proposition), Interest Rate Parity Theory. The Balance of Payments Theory.

UNIT VIII

Global Financial Markets: Recent Developments and Challenges. Global Foreign Exchange Markets: Characteristics & Recent Trends, Flow of International Currency and Role of Institutions.