International Financial Management (Functional Electives International Business)

Paper Code: 
MBI- 522
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • The objective of this subject is to acquaint the students with the basic knowledge of International business and nature and scope of International Financial Management
8.00
Unit I: 
International Financial Management

An overview, Importance, nature and scope of International finance, Recent changes and challenges in IFM.
International Flow of Funds: Financial Instruments, Factors affecting International Trade flows, Financial Market, Convertibility in rate.

8.00
Unit II: 
International Monetary System

Evolution, Gold Standard, Bretton Woods system, the flexible exchange rate regime, the current exchange rate arrangements, the Economic and Monetary Union (EMU), Balance of Payments, Corporate Governance around the world.

10.00
Unit III: 
Foreign Exchange Market, Exchange Rate Determination, and Currency Derivatives

Markets for Foreign Exchange, International Parity relationships and forecasting foreign exchange rate, Futures and Options in Foreign Exchange Markets; Euro currency market, Euro credit market, Euro bond market, International Stock market.

7.00
Unit IV: 
Foreign Exchange Exposure and Management

Management of Transaction Exposure, Economics exposure and Translation Exposure.

7.00
Unit V: 
Long term & Short-term Asset -liability Management

Foreign Direct Investment, International Capital Budgeting, International Capital structure and cost of capital. International Financing Equity, Bond financing, parallel loans.
Short-term Asset-Liability Management: International Cash management, accounts receivable management, inventory management. Payment methods of international trade, trade finance methods.

Essential Readings: 
  • P.G.Apte, International Financial Management, Tata McGraw-Hill, New Delhi, 2004.
  • Alan C.Shapiro, Multinational Financial Management, 4/e, Prentice Hall India Private Ltd, 2004
  • Jeff Madura, International Financial Management, 6th edition, Thomson Publications.
References: 
  1. Maurice D.Levi, International Finance, 3rd edition, Tata Mc Graw-Hill, New Delhi, 2003.
  2. S.Eun Choel and Risnick Bruce, International Financial Management, Tata Mc Graw Hill, 2001.
  3. David K. Eiteman, Arthur I.Stonehill and Michael H.Moffeth, Multinational Business Finance, 10th edition, Pearson Education 2004.
  4. P.K Jain, Josette Peyrard and Surendra S. Yadav, International Financial Management, Macmillan Publishers, 2001.
  5. Prakash G. Apte, International Finance A Business Perspective, Tata McGraw-Hill Publishing Co. Ltd., 2003.
  6. Adrian Buckley, Multinational finance, Third Edition, Prentice-Hall of India Pvt. Ltd., 2001.
  7. Melvin: International Money and Finance 7/e Pearson Education.