BMS: International Finance

Unit 1 Fundamentals of International Finance
a) Introduction to International Finance:
Meaning/ Importance of International Finance, Scope of International Finance	VIEW
Globalization of the World Economy, Goals of International Finance, The Emerging Challenges in International Finance	VIEW
b) Balance of Payment:
Introduction to Balance of Payment, Accounting Principles in Balance of Payment	VIEW
Components of Balance of Payments, Balance of Payment Identity	VIEW
Indian Heritage in Business, Management, Production and Consumption	VIEW
c) International Monetary Systems:
Evolution of International Monetary System, Gold Standard System, Bretton Woods System	VIEW
Flexible Exchange Rate Regimes; 1973 to Present	VIEW
Current Exchange Rate Arrangements	VIEW
European Monetary System	VIEW
Fixed & Flexible Exchange Rate System	VIEW
d) An introduction to Exchange Rates: Foreign Bank Note Market	VIEW
Spot Foreign Exchange Market	VIEW
Exchange Rate Quotations, Direct & Indirect Rates, Spread & Spread	VIEW
Cross Currency Rates	VIEW
Factors Affecting Exchange Rates	VIEW

Unit 2 Foreign Exchange Markets, Exchange Rate Determination & Currency Derivatives
a) Foreign Exchange Markets:
Introduction to Foreign Exchange Markets	VIEW
Structure of Foreign Exchange Markets, Types of Transactions & Settlement Date	VIEW
Exchange Rate Quotations &	VIEW
Exchange Rate Arbitrage	VIEW
Forward Quotations (Annualized Forward Margin)	VIEW
b) International Parity Relationships & Foreign Exchange Rate:
Interest Rate Parity	VIEW
Purchasing Power Parity	VIEW
Fishers Parity	VIEW
Forecasting Exchange Rates (Efficient Market Approach, Fundamental Approach, Technical Approach, Performance of the Forecasters)	VIEW
Global Financial Markets & Interest Rates	VIEW
Domestic & Offshore Markets	VIEW
Money Market Instruments	VIEW
c) Currency & Interest Rate Futures:
Introduction to Currency Options (Option on Spot, Futures & Futures Style Options)	VIEW
Futures Contracts, Markets & the Trading Process	VIEW
Hedging & Speculation with Interest Rate Futures	VIEW
Currency Options in India	VIEW

Unit 3 World Financial Markets & Institutions & Risks
a) Euro Currency Bond Markets:
Introduction to Euro Currency Market, Origin of Euro Currency Market,	VIEW
Euro Bond Market (Deposit, Loan, Notes Market), Types of Euro Bonds	VIEW
Innovation in the Euro Bond Markets, Competitive Advantages of Euro Banks	VIEW
Control & Regulation of Euro Bond Market	VIEW
b) International Equity Markets & Investments:
Introduction to International Equity Market, International Equity Market Benchmarks	VIEW
Risk & Return from Foreign Equity Investments	VIEW
Equity Financing in the International Markets, Depository Receipts; ADR, GDR, IDR	VIEW
c) International Foreign Exchange Markets:
Meaning of International Foreign Exchange Market	VIEW
FERA v/s FEMA	VIEW
Scope & Significance of Foreign Exchange Markets	VIEW
Role of Forex Manager, FDI v/s FPI, Role of FEDAI in Foreign Exchange Market	VIEW
d) International Capital Budgeting:
Meaning of International Capital Budgeting, Capital Budgeting Decisions,	VIEW
Incremental Cash Flows	VIEW
Cash Flows at Subsidiary and Parent Company	VIEW
Repatriation of Profits	VIEW
Capital Budgeting Techniques:
Payback Period	VIEW
Accounting Rate of Return	VIEW
Internal Rate of Return	VIEW
NPV	VIEW

Unit 4 Foreign Exchange Risk, Appraisal & Tax Management
a) Foreign Exchange Risk Management:
Introduction to Foreign Exchange Risk Management, Types of Risk, Trade & Exchange Risk	VIEW
Portfolio Management in Foreign Assets	VIEW
Arbitrage	VIEW
Speculation	VIEW
b) International Tax Environment:
Meaning of International Tax Environment, Objectives of Taxation, Types of Taxation	VIEW
Benefits towards Parties doing Business Internationally	VIEW
Tax Havens, Tax Liabilities	VIEW
c) International Project Appraisal:
Meaning of International Project Appraisal	VIEW
Review of Net Present Value Approach (NPV)	VIEW
Option Approach to Project Appraisal	VIEW
Project Appraisal in the International Context	VIEW
Practice of Investment Appraisal	VIEW