International Financial Management.

Paper Code: 
EMF 425
Credits: 
4
Contact Hours: 
60.00
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.

12.00
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.
 

12.00
Unit II: 

International Monetary System: Evolution, Gold Standards, 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.

12.00
Unit III: 

 Foreign Exchange Market, Exchange Rate Determination, and Currency Derivaties :
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.
 

12.00
Unit IV: 

Foreign Exchange Exposure and Management:
Management of Transaction Exposure, Economics exposure and Translation Exposure.
 

12.00
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.
 

A minimum of one case study will be discussed per unit of the syllabi

References: 

Text Books:

  1. P.G. Apta, International Financial management, Tata Mc Graw Hill, New Delhi, 2004.
  2. Alan C. Shapiro, Multinational Financial Management, 4/e, Prentice Hall India Private Ltd, 2004.
  3. Jeff Madura, International Financial Management, 6th edition, Thomson Publications.

Other  readings:

  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.