International Finance [BB606F ] BBA - VI Sem. Syllabus for DAVV Indore Affiliated Institutions

BB606F                                      International Finance

Unit-I Introduction: International Trade, Its Importance, Theories of International Trade- Theory Comparative Costs, Classical Theory, Absolute Advantage, Hecksher-Ohlin Theory, Free Trade V/S Protection- Barriers To Foreign Trade, Tariff And Non-Tariff Barriers.

Unit-II Balance of Payment : Meaning Of BOP, Components Of BOP, Importance Of BOP, Meaning Of Deficit And Surplus, Equilibrium, Disequilibrium And Adjustments, Methods Of Correcting Disequilibrium, Accounting Principles In BOP.

Unit-III Foreign Exchange Markets: Defining Foreign Exchange Market, Its Structure, Settlement System, Exchange Rate, Participants, Understanding SPOT And Forward Rates, Foreign Exchange Quotations,  Premium And Discount In Forward Market, Cross Rates, Inverse Rates And Arbitrage

Unit-IV Exchange Rate Determination: Determination Under Gold Standard And Paper Standard, Factors Affecting Exchange Rates, Purchasing Power Parity Theory, Demand And Supply Theory, Equilibrium Rate Of Exchange, Fluctuating V/S Fixed Exchange Rates, Exchange Control, Objectives Of Exchange Control.

Unit-V Instruments: ADR, GDR, Euro Currencies, International Commercial Papers.

Unit-VI International Financial Institutions: Introduction To IMF, Its Importance, Functions and

Significance.

 Books: 

1. V.A.Avadhani, “International Finance”, Edition, Himalaya Publication., Mumbai

2.P.G.Apte, “International Financial Market”, Tata Mc Graw Hill, New Delhi 

3.A.K.Seth, “International Financial Management”, Galgotia Publications, New Delhi

Course Objective: The objective of this course is to develop an insight and understanding of International Finance.

Examination Scheme: Students shall be evaluated on two components, internal and end semester  examination. The Semester Exam shall be worth 80 marks, it will have two sections A and B. Section A  worth 60 marks will comprise of seven theory questions, out of which a student will be required to attempt any four questions. Section B worth 20 marks will contain a case.