Course Contents 2013-14- Session Plan
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7/30/2019 Course Contents 2013-14- Session Plan
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INTERNATIONAL FINANCE
PGP II TRIMESTER 4
Finance Major
2013 14
Prof. K PARAMESWARAN
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COURSE OUTLINE
COURSE OBJECTIVE:
With the fast integration of global financial markets and availability of several cross
border finance options to a Corporate, it is becoming imperative for them to have a
thorough knowledge about various overseas financial markets, products and the risks
associated with them.
In this era of liberalization, our country has already opened up foreign direct
investments in many areas. Simultaneously our Corporate have freedom to enter into
Joint Ventures (JV) abroad or have their own Wholly Owned Subsidiary (WOS) not only
in the areas where they have core competency but also in other fields. Some of the
Corporate have already moved to investor friendly foreign countries, with the assured
infrastructure facilities.
Likewise, some of the foreign companies are entering India looking into the growth
potential theory.
Besides, some of the Indian Companies are able to raise long term finance through
syndicated loans or through equity route from global markets.
With the introduction of WTO guidelines for trade related activities and by finalizing
Foreign Trade Agreement with many countries, our share in international trade is
expected to grow.
When the global markets are still trying to come out of the recessionary trend, counter
party risk becomes inevitable. Reducing the cost of funds and managing the political,
commercial and currency risk are the major functions of the present day finance
managers.
This course will provide an insight of emerging trends in international trade and financial
markets and the relative risks associated with such exposures.
Students will be in a position to understand and appreciate the new techniques for
raising finance from international markets and able to identify the appropriate risk
factors associated with such exposures. At the end of the course, they will be able todevelop strategies for raising finance from the global financial markets as well as
managing currency exposures
As a part of curriculum, we will be introducing to the students, the activities in the forex
market through a simulation game by which students will have online exposure on
currency movements.
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CAREER TRACK:
This subject will provide updates on the current developments to students who may be
using most of the products in finance related areas in their career.
COURSE DELIVERABLES:
At the end of the course, the student will be able to:
Understand the different products available in the international market and therelated Regulatory guidelines
Use various techniques of raising cross border finance from global markets Identify the relevant risk factors in international exposures and develop
strategies to manage such risks.
Have on line experience on how foreign exchange market operatesPRESCRIBED TEXT BOOKS:
International Finance A Business Perspective P.G. Apte
International Finance & Risk Management A.V. Rajwade
Foreign Exchange Handbook Managing Risks &
Opportunity Paul Bishop
International Finance Maurice Levi
Reserve Bank of India website
PEDAGOGY:
Classroom discussions, group presentations, solving individual cases, project
assignments on current topics and participation in simulation game.
EVALUATION:
Group wok / quiz 20
Project assignments 20
Performance in Simulation game 20
End term test 40
TOTAL 100 marks
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SESSION PLAN
Session Topic Reference
Text book for reference: International Finance A business perspectiveBy: P G Apte
1 & 2 Overview on emerging trends in International Finance
and global financial environment concepts of balance
of trade / balance of payment / countrys foreign
exchange reserve - full convertibility of a currency
from corporate perspective brief discussion on
Regulations in international exposure.
Chapter1.3 and the
Appendix
3 & 4 Development of Foreign exchange Markets and dynamics
of exchange rate mechanism; Different Exchange Rates
Factors behind exchange rate movements Group work
Chapter 3.4 & 3.5
Chapter 2
5 & 6 Impact of Foreign Trade Policy on International exposure
operational issues in Special Economic Zone (SEZ)
Presentations from the
speaker
7 & 8 Managing commercial risks in international trade
different methods of trade settlements - classroomassignment
Chapter 7.6, 7.7,7.8 & 7.9
AndAdditional reading
materialsRaising short term finance - export finance and import
finance - Role of credit agencies in export promotion -
New techniques of raising cross border trade finance
International Factoring, Forfaiting, Suppliers Credit,
Buyers Credit and Line of Credit - with case study
9 & 10 Development of Euro markets - Various options for a
corporate to raise medium and long term finance from
the international market - Debt / equity External
Commercial Borrowing, Foreign Currency ConvertibleBonds and Loan syndication ADR/GDR issues -
Chapter 8.1
& Reserve Bank guidelines
(link will be provided)
11 & 12 Procedures for outbound investments Joint ventures
and Wholly Owned Subsidiaries abroad guidelines
issued by Reserve Bank - In bound investmentsFII and
FDI in India operational issues with case study
Link will be provided
13 & 14 Different types of forex exposures and risk management
strategies - transaction, translation and economic
exposures -
Chapter 5.4 and Chapter 6
15 &16 Corporate risk management Policy managing forex
exposures intergrated treasury operations - case study
and practical exercise - group work
Chapter 6
Will be provided in the
class room
17 & 18 Forex markets - Forecasting techniques technical
analysis - discussions on simultion game -
Guest speaker - material
will be provided
19 & 20 Presentations
21 - 25 Simulation game Day 1
26 30 Simulation game Day 2
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