Ajay Kumar Garg Institute of Management Ghaziabad

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AJAY KUMAR GARG INSTITUTE OF MANAGEMENT

GHAZIABAD
PGDM
Subject: International Financial Management
Course Code: BM FM07
Instructor: Mishu Agarwal
Email: [email protected]

COURSE OBJECTIVE

The goal of this course is to examine the factors encountered by multinational financial
manager in making financing and investment decisions with a global perspective. It also
involves the understanding of the macroeconomic environment governing international
business

COURSE DESCRIPTION

Students will be introduced to the forces that determine exchange rates, the measures and
management of currency exchange and interest rate risks through financial instruments
such as currency options, forwards, futures and interest and currency swaps. Students will
discuss broad-sweep topics of general interest through in-class group presentations. The
emphasis will be on the theory and practice of financial management in today's increasing
global financial markets

LEARNING OBJECTIVES

Upon completion of this course, students will be able to complete the following key
tasks:
⇒ Appreciate the financial challenges and opportunities encountered by
multinational corporations
⇒ Understand the economic determinants of foreign exchange rate and the role of
the central bank in the foreign and money markets
⇒ Recognize the relations among interest rate and foreign exchange rate in the spot
and futures markets
⇒ Understand the economics and decision factors in international financing and
investments

TEXT BOOKS AND SUGGESTED READINGS

1. .Apte, P.G. – International Financial Management (Tata Mcgraw–Hill)


2. Sharan – International Financial Management (Prentice–Hall)
3. Vij M – International Financial Management (Excel Books)
4. International Financial Management (Macmillan Publications)
5. A.K. Seth International Financial Management (Galgotia Publishing House
REFERENCE BOOKS

1. Multinational Financial Management, Alan C. Shapiro, 8th Edition, John Wiley


and Sons,Inc., 2006
2. Design Finance: a management guide for managing company -Pandey, I.M.,
3. International Financial Management by Madln Vij

EVALUATION

A combination of lectures, discussion and problem solving. Students will be encouraged


to think, analyze, evaluate, and problem-solve. Students are expected to come to class on
time and be prepared for the class, i.e., to have read the assigned reading and to have
done the assigned problems. Your final grade will be calculated as follows:
Midterm Exam 20 %
Final Exam 40 %
Class Presentations 10 %
Class test 10 %
Assignments 10 %
Attendance, participation & discipline 10 %
Total 100

TOPIC WISE LECTURE PLAN

LECTURE TOPICS
NO.

1 Global Financial Environment: Overview

2 Multinational Enterprise and Multinational Financial Management

3 International Monetary System: Exchange Rate Regimes

4 Euro Currency Market

5 EURO Market, Capital Market

6 Role of Finance Manager in Global context

7 Balance of Payments: Understandings

8 Balance of Payments Analysis & Interpretation

9 Foreign Exchange Market: Nature, Structure

10 Types of transactions

11 Exchange rate quotation & Arbitrage


12 Spot & Forward

13 Foreign Exchange Market in India: Nature, Structure

14 Foreign Exchange Market in India: Operations & Limitations

15 Exchange Rate Determination: Structural Models of Exchange Rate


Determination
16 Exchange Rate Determination: Structural Models of Exchange Rate
Determination
17 Exchange Rate Forecasting

18 The Exchange Rate of Rupee

19 Foreign Exchange Risk Exposure: Types of Risk

20 The Risk management Process: Hedging, Swaps, Futures, Options

21 Derivatives, Types of Derivatives

21 Derivatives, Types of Derivatives

22 Role of SEBI

23 Foreign Investment Decision: Exchange Rate Risk & Cost of Capital

24 International Joint Ventures

25 A review of NPV Approach

26 Repositioning of Funds

27 FDI & FII in India

28-30 Case Study Discussions

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