JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

22MBA24F4: INTERNATIONAL FINANCIAL MANAGEMENT

MBA (R22)

Course Objective:

To provide an understanding about MNC Financial Management.
To elucidate various aspects of Balance of Payments.
To enlighten on various aspects in Foreign Exchange Market.
To discuss on the methods of Measuring exchange rate movements.
To help understand the Asset-Liability Management and International Financing.

Course Outcome

Students will be able to:

Understand recent changes and challenges in International Financial Management.
Learn Factors affecting International Trade flows
Learn various aspects about International Stock market.
Understand the uses of exchange rates.
Examine the importance of International Financing.

UNIT - I: Introduction

An Overview, Importance, Nature and Scope of International Financial

Management, Domestic FM Vs. IFM, International Business Methods, Recent Changes and Challenges in International Financial Management.

UNIT - II: 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. Indian BOP Trends.

International Monetary System: Evolution, Gold Standard, Bretton Woods’s System, the Flexible Exchange Rate Regime, Evaluation of Floating Rates, the Current Exchange Rate arrangements, the Economic and Monetary Union (EMU) and Developments.

UNIT - III: Foreign Exchange Market

Function and Structure of the Forex Markets, Major Participants,

Types of Transactions and Settlements Dates, Foreign Exchange Quotations. Process of Arbitrage, Speculation in the Forward Market. Currency Futures and Options Markets, Overview of the other markets, Euro Currency Market, Euro Credit Market, Euro Bond Market, International Stock Market.

UNIT - IV: (a) Exchange Rates

Measuring Exchange Rate Movements, Factors influencing Exchange

Rates. Government influence on Exchange Rates, Exchange Rate Systems. Managing Foreign Exchange Risk. International Arbitrage and Interest Rate Parity.  Relationship between Inflation, Interest Rates and Exchange Rates, Purchasing Power Parity, International Fisher Effect, Fisher Effect, Interest Rate Parity, Expectations Theory

UNIT - V: Asset–liability Management

(a) Foreign Direct Investment, International Capital Budgeting,

International Capital Structure and Cost of Capital. International Portfolio Management.

(b) International Financing: Equity, Bond Financing, Parallel Loans, International Cash Management, Accounts Receivable Management, Inventory Management. Payment methods of International Trade, Trade Finance Methods, Export – Import Bank of India, Recent Amendments in EXIM policy, Regulations and Guidelines.