This course will equip students with essential Operations Research principles, techniques, and analytical skills to tackle real-world problems effectively, fostering critical thinking and decision-making abilities in diverse scenarios.
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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course title |
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24MIB325 |
INTERNATIONAL FINANCIAL MANAGEMENT (Theory) |
CO199: Evaluate various exchange rate regimes & Balance of Payments CO200: Analyze the strategies to hedge foreign exchange risk using derivative contracts CO201: Identify the factors influencing the financing decisions in international business. CO202: Evaluate the factors influencing the investment decisions in international business. CO203: Analyze working capital management in international business CO204: Contribute effectively in course-specific interaction |
Approach in teaching: Interactive Lectures, Group Discussion, Tutorials, Case Study Learning activities for the students: Self-learning assignments, presentations |
Class test, Semester end examinations, Quiz, Assignments, Presentation |
Multinational Financial Management- Meaning, Objective, Functions, Relationship with domestic financial management
International Monetary System: Alternative Exchange Rate Systems, A brief history of International Monetary Systems
International Flow of Funds: BoP of India, Domestic Savings, Investments and Capital account, Link between Capital and Current account, Coping with the current account deficit.
Forward Contracts, Currency Futures – Contract Specifications, Advantages & disadvantages of futures contract, Currency Options- American & European options, In the money, at the money and Out of the Money options. Basic option strategies- Long call, short call, long put and short put, Reading Futures & Option Prices in the exchange market, Interest Rate and currency swaps- Meaning, Cost savings with swaps, Swap structure.
International Financing Decisions -ADRs, GDRs, Types of international bonds, Short and medium term instruments -Euro notes, Euro Commercial papers, medium term Euro notes, concept of LIBOR and LIBID, Link between Euromarkets and their domestic counterparts.
Cost of Capital for Foreign Investments: Cost of equity capital, Debt capital and Weighted average cost of capital for foreign projects
International Investments Decisions: Types of foreign private investments- Foreign Direct Investment and Foreign Portfolio Investments, significance of foreign investments, factors affecting international investment, Limitations and dangers of foreign capital,
Capital Budgeting for Multinational Enterprises: Net present value, Incremental cash flows, Cannibalization, Sales creation, Opportunity Cost, Transfer Pricing
Financing Foreign Trade, International cash management, Accounts Receivables management,
Inventory Management, Short term Financing
SUGGESTED READINGS:
E-RESOURCES:
JOURNALS:
Links:
[1] https://managementb.iisuniv.ac.in/courses/subjects/international-financial-management-0
[2] https://economictimes.indiatimes.com/?from=mdr
[3] http://www.livemint.com/
[4] https://managementb.iisuniv.ac.in/academic-year/2024-2025