F309: International Financial Management

UNIT I (International Monetary and Financial Environment) International Financial Management-An overview, International flow of Funds-Balance of Payments (BOP), Components of BOP, Developments in international monetary SystemEvolution, Gold standard, Bretton woods systems, Exchange rate mechanism-Factors influencing exchange rate. UNIT II (Markets for Foreign Exchange and Derivatives) Foreign Exchange market-Spot Market, Forward Market, Market for currency futures-Hedging in currency futures Market, Speculation with currency futures, Market for currency optionsOption Pricing, Hedging with currency options, Speculating with options. UNIT III. (Foreign Exchange Exposure Management) Forecasting exchange rates- Techniques of forecasting, Nature and Measurement of foreign exchange exposure-Translation Exposure, Real operating Exposure, Transaction Exposure, Management of Foreign exchange-Hedging of Transaction Exposure, Hedging of Real operating exposure, Interest rate parity (IRP), Purchasing Power Parity. UNIT IV (International Investment Decision) Foreign Direct investment (FDI), International capital budgeting, Cost of Capital, International Portfolio investment. UNIT V (Indias Foreign Trade-Promotion & Control) Indias Economy in global perspective, Indias External debt, Export promotion strategy and policy, The Export-Import Bank of India-Its functions, Resources, Organization, Management and current Operations, Export Credit Guarantee Corporation (ECGC)- Its function, Policy, Management & Current Operations, Foreign Exchange Controls-Objectives, Exchange Management and Controls in India, FERA and its important Provisions.