IF-X10

IF-X10
PGDM-PT 2010-13: Term-VII

Course Name : International Finance

Credits	3.0
Faculty Name	Dr Soumya G Deb
Program	EXPGP(PT)
Academic Year and Term	2010-13 batch Term -7

1. Course Description: The course on International Finance is designed to enhance your understanding of global financial environment. The scope and relevance of international finance have been fast evolving due to increasing integration of capital markets. “Multinationality” is an important facet of modern business and it is important for managers to understand international financial development and acquire specific knowledge and skills to function in a multinational business environment. In this course we shall discuss about the foreign exchange market and instruments, about balance-of-payments and determination of exchange-rates. You would also be made familiar with the foreign-exchange derivatives (forward, futures, option, and swap) and learn how they can be used along with other techniques to manage foreign-exchange exposure. We would also briefly touch upon capital-budgeting and portfolio-management in the global context.

2. Student Learning Outcomes

· Be able to : have basic idea about foreign exchange market and determination of exchange rates

· Be able to ….have basic idea about different instruments in the forex market including foreign exchange derivatives

· Be able to … have an idea about how to use foreign exchange derivatives and other techniques to manage foreign exchange exposures .

3. Readings and References

Text Book:

International Financial Management: Eun and Resnick (Fourth Edition), 2009, Tata McGraw-Hill

Further Readings:

A. Books :

i. Multinational Financial Management: Shapiro (Eighth Edition), John Wiley & Sons
ii. Multinational Business Finance: Eiteman, Stonehill, Moffett and Pandey (Tenth Edition), Pearson Education
iii. International Finance Contemporary Issues: Levi (Fourth / Third Edition), Routledge Paperback edition
iv. International Corporate Finance: Madura (Eighth Edition), Thomson South-Western
v. Exchange Rates and International Finance: Copeland (Fourth Edition), 2007, Pearson Education
vi. International Financial Management: Apte (Fourth Edition), Tata McGraw Hill
vii. Multinational Finance: Butler (Second Edition), Thomson South-Western College Publishing
viii. International Finance: O' Brian (Second Edition), Oxford University Press

B. Handouts to be distributed in class

C. Magazines and Newspapers:

The Economic Times

Financial Express

The Economist

Bloomberg

The Wall Street Journal

The Financial Times

D. Useful Links on Exchange Rates and International Finance

Exchange Rates :

Investopedia

Finance Glossary

Articles on Finance Topics

Summarized Research Papers

Corporate Governance

Business Reference Services

NBER Working Papers on International Finance and Macroeconomics

Exchange Rate - Wikipedia

IMF World Economic Outlook

Google News Index on Exchange Rates

Bank for International Settlements

Global Development Finance 2007

Purchasing Power Parity

Tentative session plan

Session Topics to be covered Chapter(s)

1,2 · Introduction
· Exchange Rate quotations
· Determination of Exchange Rates · Eun and Resnick: Chapter 5
· Eiteman et al.: Chapters 4, Shapiro: Chapter 2

3,4 · Balance of Payments

Domestic Economy and World Trade

· Eun and Resnick: Chapter 3
· Eiteman et al.: Chapter 3,Shapiro Chapter 5

5,6 · International Parity Conditions · Eun and Resnick: Chapter 6
· Eiteman et al.: Chapter 6
Shapiro: Chapter 4

7,8 · Currency Forward, Futures, Option, Swap · Eun and Resnick: Chapter 7
· Eiteman et al.: Chapter 5
· Apte: Chapters 9, 10
· Shapiro: 7, 8, 9

9-10-11-12 · Measuring and Managing Foreign-Exchange Exposure · Eun and Resnick: Chapter 8,9,10
· Eiteman et al.: Chapter 8,9,10
· Shapiro:10, 11

13-14 · International Capital Budgeting · Eun and Resnick: Chapter 17,18
· Shapiro : 14, 17

15 · Financing International Trade · Eun and Resnick: Chapter 20
· Shapiro : Chapter 18

5. Evaluation :

The evaluation process is divided into three components.

(a) Quizzes/Mid term : 40% : May be open book or closed book ( that would be announced in class).

(b) Class Participation/Project : 20% : This could be comprised of attendance, response and attitude in class, and some group presentation exercises in class/projects.

(c) End Term: 40% : The end term examination will again be a closed book one based on topics covered during the entire course.

6. Academic Integrity: Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.

Created By: Debasis Mohanty on 05/10/2012 at 11:10 AM
Category: ExPGP-III Doctype: Document

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Session	Topics to be covered	Chapter(s)
1,2	· Introduction · Exchange Rate quotations · Determination of Exchange Rates	· Eun and Resnick: Chapter 5 · Eiteman et al.: Chapters 4, Shapiro: Chapter 2
3,4	· Balance of Payments Domestic Economy and World Trade	· Eun and Resnick: Chapter 3 · Eiteman et al.: Chapter 3,Shapiro Chapter 5
5,6	· International Parity Conditions	· Eun and Resnick: Chapter 6 · Eiteman et al.: Chapter 6 Shapiro: Chapter 4
7,8	· Currency Forward, Futures, Option, Swap	· Eun and Resnick: Chapter 7 · Eiteman et al.: Chapter 5 · Apte: Chapters 9, 10 · Shapiro: 7, 8, 9
9-10-11-12	· Measuring and Managing Foreign-Exchange Exposure	· Eun and Resnick: Chapter 8,9,10 · Eiteman et al.: Chapter 8,9,10 · Shapiro:10, 11
13-14	· International Capital Budgeting	· Eun and Resnick: Chapter 17,18 · Shapiro : 14, 17
15	· Financing International Trade	· Eun and Resnick: Chapter 20 · Shapiro : Chapter 18