FOREIGN EXCHANGE MANAGEMENT

Paper Code: 
MFM 424
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

CO 1:  Equip  the  students  with

Approach in teaching:

Class test, Semester end

proper knowledge  about  Foreign

Interactive Lectures using

examinations,                           Quiz,

exchange

whiteboards, Discussion,

Solving              problems             in

CO 2: Understand the operationsof foreign exchange market.

CO 3: Examine the theories and determination of foreign exchange rates.

CO 4: Discuss general factors of exchange rate fluctuations.

CO 5: Explain nature, functions and participants of foreign exchange market

CO 6: Explain the concept of Balance of Payment.

Tutorials,Reading assignments, Demonstration, Team teaching, Quiz.

 

Learning activities for the students:

Self-learning assignments, Effectivequestions, Solving problems of unsolved questions, Problem based

learning-cases, Group

tutorials, Assignments, Presentation, Individual andgroup projects

 

learning teamwork, Giving

 

 

Tasks.

 

 

12.00
Unit I: 

Foreign Exchange market: Meaning, Features, functions, participants in foreign exchange market methods of affecting international payments, dealings on the Foreign Exchange Market- Spot and Forward Exchanges, Forward Exchange Rates, Futures, Options, Swap Operation

12.00
Unit II: 

Foreign Exchange Rate- Concept, factors determining spot exchange rates, fluctuations in the rate of exchange, Types of Exchange Rate: Fixed & Flexible exchange rate.

Theories of exchange Rate: Demand and supply theory of exchange rate, PPP Theory, Balance of Payment theory

12.00
Unit III: 
Exchange Control:

Meaning, features, Objectives, Methods-Unilateral methods & Bilateral methods, Merits and demerits, Exchange Control in India, Exchange Control Authority- Authorized dealers, Foreign Exchange Dealers Association of India(FEDAI),Foreign Exchange Reserves in India.

 

12.00
Unit IV: 

Balance of Payment: Concept, Structure, Components of Balance of Payment, Difference between Balance of trade and Balance of Payment, Equilibrium in BOP, Disequilibrium in BOP, Types of Disequilibrium, Measures to correct disequilibrium

12.00
Unit V: 

Methods of Payment: Letter of Credit–meaning, mechanism, evaluation of LOC, Types of LOC. Bills of Exchange-meaning, Types of bills, noting and protest, stamp duty.

Introduction to International Monetary fund (IMF)

 

*Case studies related to entire topics are to be taught.

 

Essential Readings: 
Essential Readings:

·       C. Jeevanandam ,“Foreign exchange and risk management”,Sultan Chand

·       FrancisCherunilam,”International trade and export management“,Himalaya publication.

·       OP Agarwal, “Foreign trade and foreign exchange” Himalaya Publication House, Mumbai

·       Avadhani,V.A,”International Finance, Theory and Practice” Himalya Publishing company,NewDelhi.

·       S.K.Mathur,”InternationalTradeandFinance”ShivamBookHouse,Jaipur

 

Suggested Readings:

·       Cherunilam Francis,” International Business”,Tata Mc Graw-Hill Publishing Co.Limited New Delhi.

·       WoodandJByrne: International Businessfinance, Macmillan ,New York.

·       Walter, Ingo:HandbookofInternationalBusiness ,John Wileyandsons, New York.

Mithani D.M., ”Introduction to International Economics” Himalaya publishing House ,Mumbai.

References: 

·       E Resources:

·       https://www.expresslibrary.mheducation.com/bookshelf

·       Elibrary.in.pearson.com

·       https://www.yourarticlelibrary.com/international-business

·       https://www.investopedia.com/terms/m/internationalmarkets.asp

·       https://www.slideshare.net/

 

E Journals:

·       http:// sagepub.com

·       http://publishingindia.com

http://www.oiirj.org

Academic Year: 
2023-2024
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