International Finance University of Mumbai BMS 6th Sem Notes

09/04/2020 1 By indiafreenotes
Unit 1 Fundamentals of International Finance {Book}
a) Introduction to International Finance:
Meaning/ Importance of International Finance, Scope of International Finance VIEW
Globalization of the World Economy, Goals of International Finance, The Emerging Challenges in International Finance VIEW
b) Balance of Payment:
Introduction to Balance of Payment, Accounting Principles in Balance of Payment VIEW
Components of Balance of Payments, Balance of Payment Identity VIEW
Indian Heritage in Business, Management, Production and Consumption VIEW
c) International Monetary Systems:
Evolution of International Monetary System, Gold Standard System, Bretton Woods System VIEW
Flexible Exchange Rate Regimes; 1973 to Present VIEW VIEW
Current Exchange Rate Arrangements VIEW
European Monetary System VIEW
Fixed & Flexible Exchange Rate System VIEW
d) An introduction to Exchange Rates: Foreign Bank Note Market VIEW
Spot Foreign Exchange Market VIEW
Exchange Rate Quotations, Direct & Indirect Rates, Spread & Spread VIEW
Cross Currency Rates VIEW
Factors Affecting Exchange Rates VIEW


Unit 2 Foreign Exchange Markets, Exchange Rate Determination & Currency Derivatives {Book}
a) Foreign Exchange Markets:
Introduction to Foreign Exchange Markets VIEW
Structure of Foreign Exchange Markets, Types of Transactions & Settlement Date VIEW
Exchange Rate Quotations & VIEW
Exchange Rate Arbitrage VIEW VIEW
Forward Quotations (Annualized Forward Margin) VIEW
b) International Parity Relationships & Foreign Exchange Rate:
Interest Rate Parity VIEW
Purchasing Power Parity VIEW
Fishers Parity VIEW VIEW
Forecasting Exchange Rates (Efficient Market Approach, Fundamental Approach, Technical Approach, Performance of the Forecasters) VIEW
Global Financial Markets & Interest Rates VIEW
Domestic & Offshore Markets VIEW
Money Market Instruments VIEW VIEW
c) Currency & Interest Rate Futures:
Introduction to Currency Options (Option on Spot, Futures & Futures Style Options) VIEW
Futures Contracts, Markets & the Trading Process VIEW VIEW
Hedging & Speculation with Interest Rate Futures VIEW VIEW
Currency Options in India VIEW


Unit 3 World Financial Markets & Institutions & Risks {Book}
a) Euro Currency Bond Markets:
Introduction to Euro Currency Market, Origin of Euro Currency Market, VIEW
Euro Bond Market (Deposit, Loan, Notes Market), Types of Euro Bonds VIEW
Innovation in the Euro Bond Markets, Competitive Advantages of Euro Banks VIEW
Control & Regulation of Euro Bond Market VIEW
b) International Equity Markets & Investments:
Introduction to International Equity Market, International Equity Market Benchmarks VIEW
Risk & Return from Foreign Equity Investments VIEW
Equity Financing in the International Markets, Depository Receipts; ADR, GDR, IDR VIEW
c) International Foreign Exchange Markets:
Meaning of International Foreign Exchange Market VIEW
Scope & Significance of Foreign Exchange Markets VIEW
Role of Forex Manager, FDI v/s FPI, Role of FEDAI in Foreign Exchange Market VIEW
d) International Capital Budgeting:
Meaning of International Capital Budgeting, Capital Budgeting Decisions, VIEW
Incremental Cash Flows VIEW
Cash Flows at Subsidiary and Parent Company VIEW VIEW
Repatriation of Profits VIEW
Capital Budgeting Techniques:
Payback Period VIEW
Accounting Rate of Return VIEW
Internal Rate of Return VIEW


Unit 4 Foreign Exchange Risk, Appraisal & Tax Management {Book}
a) Foreign Exchange Risk Management:
Introduction to Foreign Exchange Risk Management, Types of Risk, Trade & Exchange Risk VIEW
Portfolio Management in Foreign Assets VIEW
Speculation VIEW VIEW VIEW
b) International Tax Environment:
Meaning of International Tax Environment, Objectives of Taxation, Types of Taxation VIEW
Benefits towards Parties doing Business Internationally VIEW
Tax Havens, Tax Liabilities VIEW
c) International Project Appraisal:
Meaning of International Project Appraisal VIEW
Review of Net Present Value Approach (NPV) VIEW
Option Approach to Project Appraisal VIEW
Project Appraisal in the International Context VIEW
Practice of Investment Appraisal VIEW