International Financial Management

2 credits

Description
To provide students with a conceptual framework of how financial decisions
are undertaken in a multinational company and to familiarize students with
unique economic factors that challenge a financial manager in the
international context.
Level of Knowledge: Conceptual and Working
Unit I

Introduction to International Financial Management

(6 Hrs)

The environment the nature of international risk exposure International

Monetary system - determination of exchange rates Balance of payments Interest parity international fisher effect
Unit II

Foreign Exchange Market

(6 Hrs)

Functions Participants - currency derivatives Forwards Swaps

Currency futures and Options Interest rate futures speculation
Unit III

Foreign Exchange Risk Management

(6 Hrs)

Measuring and managing accounting exposure transaction exposure

translation exposure Hedging measuring and managing economic
exposure - managing operating exposure managing interest rate exposure
Unit IV

Managing Multinational Operations

(4 Hrs)

Multinational taxation- inter-company fund flow - Multinational working

capital Management- Foreign Trade - Shortterm financing - Financing the
global firm global cost of capital and financial structure Equity and debt
financing through global markets.

Unit V

Foreign Investments

(4 Hrs)

Decision corporate strategy International portfolio diversification - foreign

direct investment - multinational capital budgeting international project
appraisal - political risk and country risk analysis.
Unit VI

An Overview of Foreign Trade and Foreign Exchange

(4 Hrs)

Meaning-types-financing of foreign trade-banks and institutional financeexport and import- financing and Documents- letter of credit-types-foreign
exchange and foreign exchange markets-players and dealers in foreign
exchange-volume and dynamics of foreign exchange.
Management of foreign exchange instruments - money market and capital
market Exchange rate arrangement in India- foreign trade contracts: terms
and documentation- managing of foreign exchange reserves-an outline of
FEMA and foreign exchange management in India.
[Total 30 Hrs]
Recommended Reading
1. Eietemanetal

David

K.,

Multinational

Business

Finance.

Pearson

Education.
2. Vij Madhu.,(2006). International Financial Management. New Delhi: Excel
Books.
3. Madura Jeff., International Financial Management. South Western
Thomson Learning.
4. Apte Prakash G., Global Business Finance. Tata McGraw Hill.
5. Eun /Resnick., International financial management. 2nd Edition, Tata
McGrawHILL.
6. Bharadwaj H.P., (1994). Foreign exchange handbook. Wheeler Publishing.
7. Sharan Vyuptakesh., (2009). International Financial Management. New
Delhi: PHI Learning Pvt Ltd Publications.
8. Apte P G., (2008). International Financial Management. New Delhi: Tata
McGraw Hills Publications.
9. Shapiro Alan C., (2008). Multinational Financial Management. New Delhi:
Wiley India Pvt Ltd.

Evaluation Pattern:
2 CIAs
Mid Trimester: Part A, B and C
End Trimester: Part A, B, C and D