International strategic Finance [FT 403F] MBA - IV Sem. Syllabus for DAVV Indore Affiliated Institutions

DEVI AHILYA VISHWAVIDYALAYA, INDORE

MBA (Full-Time) Financial Management 
 Fourh-4th-IV Semester Curriculum/ Syllabus

International strategic Finance Syllabus

Financial Management  -  International strategic Finance [FT 403F]

Course Contents

1.  International   Financial management-   an    overview,   International Financial management  and  domestic financial  management,  motivations for  international finance.  Theories of  Foreign  Exchange  rate  movement  and  International  Parity Conditions -Purchasing Power Parity, International Fisher Effect

2.  The Foreign Exchange markets- Functions of the Foreign Exchange Market, The Foreign Exchange rates -direct and indirect quotations. Spot market and forward market - forward premiums and discounts, Bid - ask spread, Interest Arbitrage - Covered Interest Arbitrage and Interest Parity theory, 

3.  Management of Foreign Exchange Risk -Translation exposure - Functional Versus Reporting Currency,. Comparison of Four Translation Methods, Transaction exposure- Measurement and Management of Transaction exposure. Currency Correlation and Variability as Hedging TooIs . Economic Exposure, Transaction Exposure Versus Economic Exposure.

4.  Financial Management of the Multinational Firm - Cost of Capital and Capital Structure of the Multinational Firm - determining capital structure components, Cost of Capital for MNCs VS Domestic Firms,

5.   Multinational Capital Budgeting - Problems and issues in foreign investment analysis. Techniques of capital budgeting - NPV, IRR. APV.

6.  Multinational Cash management - Centralized perspective of cash flow analysis. Techniques to optimize cash flow - leading and lagging, netting, matching. Country

risk analysis .

7.  Managing Foreign Operations — Eurocurrency markets, International Bonds Markets, External Commercial Borrowings, Advantages of Euro Issues. GDRs and ADRs 

Text Book

• Apte, PG International Financial Management 5e,Tata Macgraw Hill
• Madura International Financial management 1^st , 2008 Cengage Learning
• Shapiro,Multinational Financial Management, 8ed,Wiley India
• Madhu Vij International Financial Management,2010,Excel books

 Reference Book

• Eun &, Rusnik International Financial Management ,4eTataMacgraw Hill
• Clark,  International Financial management, 2^nd  2008 . Cengage Learning
• R M Srivastava Multinational Financial Management Excel books
• Bhalla. V.K.International Financial Management:Text and Cases Anmol Publi
• Kevin,Fundamentals of International Financial management,PHI Learning

Course Objective

To provide a conceptual framework of the Working of International Financial Institutions, Money Markets, Exchange Transactions and Capital Markets.

Examination Scheme:

Students shall be evaluated on two components , internal and end semester examination. Internal component shall be of 20 marks based on continuous evaluation .The Semester Examination will be worth 80 marks, it will have two Section, 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 Cases.