INTERNATIONAL FINANCIAL MANAGEMENT

Course Objectives

At the end of this course the learner is expected to

  • To learn the International flow of Funds, Balance of payments and International Monetary System.
  • To study the Markets for Foreign Exchange, Spot and Forward market and exchange rate.
  • To become skilled at International Investment decision and Foreign Direct Investment.
  • To familiarize in International Financial decisions and international financial markets.
  • To learn fundamental of International Financial Market Instruments.

UNIT - I

International Financial Management – An overview – Importance – Nature and Scope – International flow of Funds – Balance of Payments – International Monetary System.

UNIT - II

Markets for Foreign Exchange – Foreign Exchange Market – Feature – Spot and Forward Market – Exchange Rate Mechanism – Exchange Rate determination in the Spot and Forward Markets – Factors Influencing Exchange Rate – FEMA - Market for currency futures and currency options – Hedging with currency future and options.

UNIT - III

International Investment Decision – Foreign Direct Investment– International –Capital Budgeting – International Portfolio Investment – Meaning – Benefit of International Portfolio Investment – Problem of International Investment.

UNIT - IV

International Financial Decisions – Overview of the International Financial Market – Channels for International flow of Funds – Role and Functions of Multilateral Development Banks – International Banking – Functions – Credit Creation – Control of International Banks.

UNIT - V

International Financial Market Instruments – Short-term and Medium-term Instruments – Management of short-term funds – Management of Receivables and Inventory – Factors behind the Debt Crisis.

REFERENCES

  • V. Sharan, “International Financial Management”, Prentice Hall Pvt Ltd, New Delhi.
  • A.K. Seth, “International Financial Management”, Galgotia Publishing Company, New Delhi.
  • P.G. Apte, “International Financial Management”, Tata McGraw Hill Publishing Company Limited, Noida, UP.
  • R.L. Varshney and S. Bhashyam, “International Financial Management”, S.Chand & Sons Publisher, New Delhi.

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