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INF Course Outline

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0% found this document useful (0 votes)
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INF Course Outline

Uploaded by

rahul kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Praxis Business School

Post Graduate Diploma in Management Program (PGDM)

Course Name and Subject Code: International Financial Management

Academic Year: (2020-2022)

Term –1

Credit – 3.0

Course Instructor: Dr. Somnath Banerjee

Background of the Course:

This course introduces the student to the theory, concepts, and business application of all the
concepts which are required for managing finance in the international perspective. This
course introduces the basic concepts of currency systems, currency crisis and balance of
payments along with the dynamics of international imbalances in trade and the application
and functional areas like understanding forex rate quotations, cross currency transactions,
spot and forward markets and managing foreign exchange risks. The subject also deals with
managing interest rate risks in treasury operations. It gives an overview of translation of
financial statements in foreign currency and the consequence of that. International transfer of
goods and transfer pricing also adds to the content along with cross border investment
appraisal.

Course Description: The course is designed with an intention to impart knowledge about:
 The concept of balance of payments and international imbalances.
 The critical understanding of different forex quotes, rates and transactions.
 Managing Forex Risk/exposure
 Managing cross border investments.

Course Objectives: The objectives of this course are:

1. To introduce the conceptual and theoretical framework of balance of payments and


currency systems and correction of short term and long term imbalances.
2. To understand foreign exchange risks and quotations and opportunities of profit making.
3. To understand different market segments and international value relationships for
managing risk.
4. To understand techniques of managing international risks.

REFERENCE BOOK

IFM by Shrivastava.

DURATION: 20 sessions of 90 minutes each

PEDAGOGY:

Teaching Pedagogy will consist of classroom teaching, use of cases and presentations.

COMPONENTS OF EVALUATION: ( Tentative, may change subject to different


factors)

S.No. Particulars Percentag


e
1 Case Study and Assignment 20
2 Presentation (group or individual) 20
3 Class Participation (role play etc.) 20
4 Surprise Quizzes 10
5 End Term 30
Total 100

Module wise Session Plan


Module Session Session Teaching Resources/
Objectives Hours Assignment

Module 1: Session 1 To understand 1.5 Hours Class Work


International Monetary the framework Notes &
Monetary Systems viz gold standards, of international Study
Systems and inter war time, Bretton currency Material.
BOP WoodsSystem, Exchange systems.
rate regimes
Session 2-4 Understanding 1.5 Hours Class Work
the BOP in Notes &
Understanding the concept determining Study
and application of Balance of domestic Material.
payments, Current and currency rates.
Capital Accounts and the
international supply and
demand of foreign currency,
India’s Balance of Payments.

Module 2 Session 5 Understanding 1.5 Hours Class Work


Understanding direct and and calculating Notes &
Foreign indirect quotes of foreign rates. Study
Exchange currencies and cross Material.
Markets. currency rates.

Session 6 Understanding 1.5 Hours Class Work


arbitrages Notes &
Multi currency cross rates Study
and arbitrages. Material.

Session 7 Forward 1.5 Hours Class Work


markets and Notes &
Forward quotations, opportunities. Study
premiums, discounts and Material/
forward market arbitrage. Case Study.

Session 8 Understanding 1.5 Hours Class Work


interest Notes &
Covered Interest arbitrages. Study
Arbitrage. Material.

Session 9 Understanding 1.5 Hours Class Work


the implications Notes &
Purchasing power parity and of parity Study
interest rate parity. relations in Material.
calculation of
rates.

Session 10 Understanding 1.5 Hours Class Work


Markets with Notes &
Discussions on Real life basic approach. Study
cases and examples. Material.
Exchange Rate Prediction
Models.

Session 11 Continuous 1.5 Hours


assessment..
1st assessment /
Presentation/viva/written
exams…

Session 12 Measuring 1.5Hours Class Work


progress under Notes &
Case Presentation/ Analysis continuous Study
of market... evaluation Material.
method.

Module 3 Session 13 Understanding 1.5 Hours Class Work


Currency the use of Notes &
Derivatives Currency forwards, currency forwards and Study
futures and use of those. futures. Material.

Session 14 Understanding 1.5 Hours Class Work


SWAPs. Notes &
Currency Swaps.. Study
Material.

Session 15 Understanding 1.5 Hours Class Work


applicability of Notes &
Option Strategies options. Study
Material.

Module 4 Session 16-17 Understanding 1.5 Hours Class Work


Foreign real life Notes &
Exchange Foreign Exchange Exposure situations using Study
Exposure Management – transaction, Single Index, Material.
Management translation and operating CAPM and
exposures, option hedge, APM Models.
balance sheet hedge.
Session 18 Continuous 1.5 Hours
assessment
Evaluation 2

Module 5 Session 19 International 1.5 Hours Class Work


International Flows Notes &
flow of Cross Border Investment Study
capital and Appraisal and Transfer Material.
goods- Pricing
evaluation
Session 20 1.5 Hours

Final Assessment

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