17BB319-INTERNATIONAL
FINANCIAL MANAGEMENT
Course Objectives:
The objective of the course is to provide the students with
an understanding of financial markets, major institutions
involved, the framework for these institutions etc. The
prerequisite for the course is financial accounting and
analysis and financial management.
Course Outcomes:
By end of this course it is expected that the student will be
able to:
Understand an overview of international financial
management, components of BOP
Understand the Evolution of International
Monetary system.
Know the structure of Foreign Exchange market
and how to calculate spread.
Understand the Relationship between Inflation,
Interest rates and Exchange rates.
Understand the FDI and trade finance methods.
UNIT - I
International Financial Management: An overview of
IFM, International Flow of Funds -Balance of Payments
(BOP), Fundamentals of BOP, Accounting components of
BOP, Factors affecting International Trade flows,
Agencies that facilitate International flows, Theories of
International business.
UNIT - II
International Monetary System: Evolution, Gold
standard, Bretton woods system, flexible exchange rate
regime, the current exchange rate arrangements, EMU.
UNIT - III
Foreign Exchange Market: Function and Structure of the
Forex markets, major participants, types of transactions
and settlements, FE Quotations, Speculation in forward
markets
UNIT - IV
Exchange Rates: Measuring exchange rate movements,
Factors influencing exchange rates. Government influence
on exchange rates - exchange rate systems, Relationship
between inflation, interest rates and exchange rates – PPP,
IFE , IRP theories.
UNIT - V
International Investments: Foreign Direct Investment,
International Capital Budgeting, International Capital
structure and cost of capital..Payment methods of
international trade, Trade finance methods.
Skill Development:
(These activities are only indicative, the Faculty member
can innovate)
1. Read any two related international treaties & write a
report.
2. Follow any latest cross-border merger and evaluate its
outcomes.
3. Work out on cross-currency valuations.
4. Evaluate the role of any two International Agencies.
5. Bring out the role of GST in being tax guardian to end-
users.
TEXT BOOKS:
1. Jeff Madura, International Financial Management, 6th
edition, Thomson Publications.
2. [Link], International Financial Management, Tata
McGraw-Hill, New Delhi, 2004
REFERENCE BOOKS:
1. Maurice [Link], International Finance, 3rd edition,
Tata Mc Graw-Hill, New Delhi, 2003.
2. [Link] Choel and Risnick Bruce, International
Financial Management, Tata Mc Graw Hill,2001.
3. David K. Eiteman, Arthur [Link] and Michael
[Link], Multinational BusinessFinance, 10th
edition, Pearson Education 2004.
4. P.K Jain, Josette Peyrard and Surendra S. Yadav,
International Financial Management,Macmillan
Publishers, 2001.
