International Finance

Session 1,2

Topic Foreign Exchange Market

Principal Issues Characteristics of Global Foreign Exchange Markets Spot and Forward Market Relationship between Spot and Forward Rates Activities in the Forex Markets Market Participants Correspondent Banking Indian Forex Market & its Structure Central Bank Intervention An Introduction to Exchange Arithmetic The Bretton Woods System & later developments Alternate Exchange Rate Systems Current and Capital Accounts The emerging Indian BOP scenario Capital Account Convertibility Long Run & Short Run Theories of Exchange Rate Determination

Reference Chapter 7

3,4

Determination of Exchange Rates

Chapter 2

5,6

International Monetary System; Balance of Payments and International Economic Linkages

Chapters 3, 5

7,8

Parity Conditions in International Finance & Currency Forecasting

Chapter 4 Case: The Value of the Indian Rupee Chapters 10,11 Cases from text book Chapters 8,9

Foreign Exchange Risk Management

Transaction Exposure Economic Exposure Translation Exposure Interest Rate & Currency Swaps Currency Futures and Options Payment Methods and Short Term Credit Documentary Collections Documentary Credits Short Term Export/ Import Financing Options Available to Indian Corporates Theory of MNE FDI in India Opportunities for Indian Corporates to Expand Overseas

10,11

An Introduction to Currency Derivatives

12,13,14

Short term Financing and Current Assets Management

Chapters 18,19

Case: Magnum Overseas Chapter 16

15,16

Corporate Strategy and FDI

17,18

Medium & Long Term International Financing

Eurocurrency Markets Development Banks and Multilateral Lending Agencies FCCBs/ ADRs/ GDRs/ FIIs Project Finance Instruments Loan Syndication Guarantees

Chapters 13, 15 Case: Export Import Bank of India

19,20

Project Presentations, Case Discussions