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IF-MB19
MBA 19-21: Term-VI

International Finance
Instructor: Golaka C Nath, Ph.D.
Credit-3
MBA(BM)-2019-21
AY-2020-21
Term-VI

Overview of the Course

This course deals with the challenges of important Trinity of Macroeconomics: exchange rates, capital flows and financial crises. The objectives of the course are: (a) introducing the main relevant economic theories, models and empirical works in the above three key areas of International Finance; and (b) applying these analytical tools to build an understanding of relevant economic developments and policy issues in the global markets.

Course Objective:

The purpose of this course is to provide a sound working knowledge of International financial management. Much of what the students will learn is used in Banks and Corporates dealing in Foreign Exchange and global finance. Projects and case studies will be included to ensure better understanding of the subject matter.

Outline of Key Topics
· The International Financial Environment: Multinational Financial Management: An Overview, International Flow of Funds, International Financial Markets, Exchange Rate Determination, Currency Derivatives.

· Exchange Rate Behavior: Government Influence on Exchange Rates, International Arbitrage and Interest Rate Parity, Relationships among Inflation, Interest Rates, and Exchange Rates. · Exchange Rate Risk Management: Forecasting Exchange Rates, Measuring Exposure to Exchange Rate Fluctuations, Managing Transaction Exposure, Managing Economic Exposure and Translation Exposure.

· Long-Term Asset and Liability Management: Direct Foreign Investment, Multinational Capital Budgeting, International Acquisitions, Country Risk Analysis, Multinational Cost of Capital and Capital Structure, Long-Term Financing · Short-Term Asset and Liability Management: Financing International Trade, Short-Term Financing, International Cash Management.

Text Book
1. International Financial management, Jeff Madura (Cengage) – Main Text Book with Indian edition if available
2. International Financial Management: Cheol Eun and Bruce Resnick
TENTATIVE COURSE OUTLINE
Each Session is approximately 1.5 hours
Session No
Session Details
1 and 2Multinational Financial Management: An Overview, International Flow of Funds
LO 1. Identify and contrast the major markets that facilitate international business.
3 and 4International Financial Markets, Exchange Rate Determination, Currency Derivatives
LO 2. Describe relationships between exchange rates and economic variables, and explain the forces that influence these relationships.
5 and 6Government Influence on Exchange Rates, International Arbitrage and Interest Rate Parity
LO 2: Describe relationships between exchange rates and economic variables, and explain the forces that influence these relationships.
LO 3. Identify the best practices for measuring and managing exchange rate risk and explore currency forecasting theories.
7 and 8Relationships among Inflation, Interest Rates, and Exchange Rates
LO 2: Describe relationships between exchange rates and economic variables, and explain the forces that influence these relationships.
9 and 10 Forecasting Exchange Rates, Measuring Exposure to Exchange Rate Fluctuations,
LO 3. Identify the best practices for measuring and managing exchange rate risk and explore currency forecasting theories.
11 and 12 Managing Transaction Exposure, Managing Economic Exposure and Translation Exposure
LO 4. Synthesize and evaluate options for the management of long-term assets and liabilities, including motives for direct foreign investment, multinational capital budgeting, country risk, analysis, and capital structure decisions.
13 and 14Direct Foreign Investment, Multinational Capital Budgeting, International Acquisitions, Country Risk Analysis,
LO 4. Synthesize and evaluate options for the management of long-term assets and liabilities, including motives for direct foreign investment, multinational capital budgeting, country risk, analysis, and capital structure decisions.
15 and 16Multinational Cost of Capital and Capital Structure, Long-Term Financing
LO 4. Synthesize and evaluate options for the management of long-term assets and liabilities, including motives for direct foreign investment, multinational capital budgeting, country risk, analysis, and capital structure decisions.
17 and 18Financing International Trade, Short-Term Financing
LO 5. Prescribe multi-national corporations’ (MNCs’) management of short-term financing and international cash management.
19 and 20International Cash Management
LO 5. Prescribe multi-national corporations’ (MNCs’) management of short-term financing and international cash management.

Prerequisites and pre-assignment:

The only prerequisite for the course is good understanding of Financial Management that students have gone through in 1st Year.

Grading

Grading will be fair and objective and as per the Institution Rules. Quiz results and Assignment results will be generally available in 24 hours but it can take more time if external expert’s view is sought on valuation assignments. The following components will be taken for Grading:

1. Quiz – 30% (Average of 3 quizzes (MCQ)).
2. Assignments (30%)
3. End Term (40%) – (Open Book)

Class Assignment: Take away assignments where students (Individual as well as Group) will be allowed take home two assignments and submit the same within the due dates which will be announced beforehand. Assignments Submission will be supported by a 10-15 minutes video recording of final presentation and discussion among the Group members showing all group members have contributed to the assignment.

Student Contact

Two students (preferably a male and a female) will volunteer to interact with the Instructor for all correspondence and courseware uploads to course-web.

Student Counseling

The instructor will be available in the campus on the class days for counseling, tutorials as well as career planning advice in financial markets. Students are free to discuss the issues they feel fit to discuss with the instructor.

Contact Details
Course Instructor will be available at golak.nath@gmail.com.

Telephone
+91 9820511897

Created By: Alora Kar on 11/20/2020 at 05:20 PM
Category: BM 19-21 T-VI Doctype: Document

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