Global Financial Markets and Instruments (Functional Electives International Business)

Paper Code: 
MBI- 423
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • The objective of this course is to acquaint the students with the salient features of global currency markets and financial system
7.00
Unit I: 
Introduction to International Financial System

Brettonwood conference and afterwards; European monetary system. Fixed vs. Floating Exchange Rate regimes.

8.00
Unit II: 
Creation of Euro Currency Markets

Creation of Euro Dollar, Emergence of Global Currency Markets, Size and Structure of Europe and Asian Markets, Regulatory systems.

7.00
Unit III: 
International Financial Markets and Instruments

International capital and money market instruments and their salient features; Integration of financial markets and approach; Arbitrage opportunities; Role of financial intermediaries.

9.00
Unit IV: 
International Money Market Instruments and Institutions

GDRs, ADRs, IDRs, Euro Bonds, Euro Loans, CPs, derivatives, floating rate instruments, loan syndication and Euro deposits; IMF, IBRD, Development Banks.

9.00
Unit V: 
Global Shopping for funds and Investments

Comparison of Domestic, Foreign and Euro Currency Markets for Lending and Investment, Forex Risk, Interest Rate Parity, Cover deals; Using global markets for Hedging, Arbitrage, speculation, Cost comparisons.

Essential Readings: 
  • Buckley, Adrian: Multinational Finance, Prentice Hall of India, New Delhi
References: 
  1. Henning, C.N., Piggot, W. and Scott, W.H: International Financial Management, Mc Graw Hill, Int. Ed., New York.
  2. Maurice, Levi: International Finance, McGraw Hill, Int. Ed., New York.
  3. Rodriqufe, R.M and E.E Carter: International Financial Management, Prentice Hall of India, Delhi.
  4.  Shaprio, A.C: Multinational Financial Management, Prentice Hall of India, New Delhi.