Unit 1.
Introduction to International Financial Environment :The Importance of International Finance, Goals Of MNC, International Business Methods. Balance of Payments (BoP), Accounting Components of BoP, 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).
Unit 2.
International Financial Markets and Instruments:Foreign Portfolio Investment, International Bond & Equity market, Global Depository Receipts (GDR), American Depositories Receipts (ADR), Foreign Bonds & Eurobonds; International Banking services –Correspondent Bank, Representative Offices, Foreign Branches.
Unit 3.
Sources and Types of Risk in International Market :Management of Exposures‐ Transaction, Translation, Economic, Political, Interest Rate ; Managing Currency Risk and Interest Rate Risk.
Unit 4.
Foreign Exchange Market:Functions and Structure of the Forex markets, Foreign exchange market participants, Types of transactions and Settlements Dates, Exchange rate quotations; Determination of Exchange Rates in Spot markets. Exchange Rates Determinations in Forward Markets. Exchange Rate Behaviour, Cross Rates, Bid‐Ask Spread.
Unit 5.
Cross Border Investment Decisions: Types of Cross Border Investment Decisions, Green Field Investment; International Mergers & Acquisition, Policies regarding Repatriation of Return; International Diversification & Portfolio Investment.
- Teacher: Rahul Agarwal