Page 4 - DMGT549_INTERNATIONAL_FINANCIAL_MANAGEMENT

SYLLABUS
International Financial Management

Objectives:
Understanding of historical perspectives of international monetary system and theories of exchange rate determination.

The students will learn the most suitable techniques and strategies to be applied for risk management in the foreign
exchange market.
Analysis and management of country risk involved in investment decisions at multinational levels.

S. No. Description
1. Financial Management in Global Context.
2. International Monetary System: IMF, EMU.
3. Currency Forecasting: Interest Rate Parity Theory, International Interest Rate Parity Theory, Purchasing Power
Parity: Fishers Effect & International Fishers Effect.
4. Exchange Rates: Determination of Exchange Rates, Foreign Exchange and Eurocurrency Markets.
5. Role of Economic Fundamentals, Financial and Socio Political Factors; Corporate Exposure Management:
Introduction, Foreign Exchange Risk Exposure.
6. Management of Transaction Exposure: Through Currency Futures, Currency Options, Currency Swaps, Interest
Rate Swaps.
7. Management of Operating Exposure and Management of Translation Exposure.
8. Foreign Market Entry and Country Risk Management.
9. Cross-border Capital Budgeting.
10. Real Options and Cross-border Investment.