INTERNATIONAL FINANCE MANAGEMENT

International Finance Management - Nature and Scope, Structure of International Financial Markets, International Finance Management and Domestic financial management, Cost and availability of international financial flows, Balance Of payments, significance, Preparation of BOP statement, Link between BOP and the economy.

International Monetary System, Gold standard, IMF and World Bank Exchange Rate mechanism – factors influencing exchange rate, Purchasing power parity and Interest Rate parity theorems.

Aspects of international cash management; investment criteria and borrowing decisions; centralized versus decentralized cash management; optimizing cash flows; cash management and value of the firm. Foreign Exchange Market – Transactions – Spot, Forward, Futures, Options And Swaps, Arbitrage and speculation in Foreign exchange market.- Exchange arithmetic, Spread, premium and Discount, international bond financing; determining financial structure of foreign subsidiaries of MNCs

Foreign Exchange Exposure – managing transaction, translation and operating Exposure, Techniques for covering the foreign exchange risk - Internal and external techniques of risk.

International financial market instruments, International Equities, ADR and GDR, Foreig Bond and euro- bond- Short-term and medium term instruments.