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Course Detail

Course Name International Financial Management
Course Code 24COM333
Program B.Com. (Specialization in International Finance)
Campus Mysuru

Syllabus

Unit 1

International Business and its modes – Nature of International Financial Functions – Scope of International Financial Management – IFM and Domestic Financial Management – Fast strides in International Financial Functions. International flow of funds – Structure of Balance of Payments – Equilibrium, Disequilibrium and Adjustment – Approaches to Adjustment – Capital Account Convertibility.

Unit 2

Developments in International Monetary System – Specie Commodity Standard – Gold Standard – Bretton Woods System of Exchange Rates – Exchange rate regime since 1973 – International Liquidity. Exchange Rate Mechanism – Exchange rate quotations –Nominal, Real and Effective exchange rates – Determination of exchange rate in the spot market – Factors influencing exchange rate – Theories of exchange rate behaviour.

Unit 3

Foreign Exchange Market – distinctive features – major participants – spot market – Forward market – market for currency futures – market for currency options. Forecasting Exchange Rates – Need for forecasts – Techniques of forecasting – Concept, Nature and measurement of Foreign Exchange Exposure – Management of Foreign Exchange Exposure.

Unit 4

International Investment Decision: FDI – Theories of FDI – Costs and Benefits of FDI – Strategy for FDI – Evaluation and Management of Political Risk – International Portfolio Investment – Modes – Problems – Concept of Optimal Portfolio.

Unit 5

International Financial Market – Channels for flow of funds – selection of sources and forms of fund. International Banking – process of internationalization – Financial Intermediation Function – Direction and purposes of lending – Lending Risk – Intermediation in the Foreign Exchange Market. International Financial Instruments: International equities – International Bonds – ADR, GDR and Gold Bullion market instruments – Financial Swaps.

Objectives and Outcomes

Objective: To provide a detailed outlook on the concepts of international financial management.

Course Outcomes:

CO1: Familiarise with international business and its modes.

CO2: Understand the exchange rate mechanism.

CO3: Understand foreign exchange market.

CO4: Understand the International Portfolio Management and Foreign Direct Investments.

CO5: Understand the concepts of international financial markets and instruments.

COPO

PO1

PO2

PO3

PO4

PO5

PO6

PO7

PO8

PO9

PO10

CO1

3

2

2

2

2

1

1

2

1

2

CO2

3

2

3

3

3

1

1

2

1

2

CO3

3

2

3

3

3

1

1

2

1

2

CO4

3

2

3

3

3

1

1

2

1

2

CO5

3

2

3

3

3

1

1

2

1

2

Text Books / References

TEXTBOOKS:

  • Vyuptakesh Sharan – International Financial Management, PHI Publishers
  • Francis Cherunilam – International Business, PHI Publishers

REFERENCE BOOKS:

  • Madhu Vij – International Financial Management, Excel Books
  • G. Apte – International Financial Management, TMH
  • Seth – International Financial Management, Galgotia Evaluation Pattern – 13 & R.16

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