MI4011 International Finance Syllabus:

MI4011 International Finance Syllabus – Anna University PG Syllabus Regulation 2021

COURSE OBJECTIVE:

 To understand the International Financial Environment, Management and Risks involved.

UNIT I INTERNATIONAL TRANSACTIONS

Overview and Evolution of International Finance –Institutions for International Finance – Internationalization process –International Monetary and Financial System – Balance of Payments – Exchange rate and money supply – International parity relations – Purchasing power parity – interest rate parity – Forward rate parity.

UNIT II MULTINATIONAL FINANCIAL MANAGEMENT

Process of overseas expansion – Reasons for cross-border investing – The theory of investment – techniques of project evaluation – Approaches for investment under uncertainty – FDI – Measuring and Managing Risk – International M&A – Financial Techniques in M&A – Regulations of M&A in major countries.

UNIT III INTERNATIONAL MONETARY SYSTEM

Introduction to Institutions of the Foreign Exchange Interbank Market – Foreign Exchange Spot Transactions – forward market –– Hedging and Speculation – Hedging FX Transaction Exposure – The Eurocurrency market – international banking – structure and instruments

UNIT IV BORROWING AND LENDING : INTERNATIONAL SOURCES OF FINANCE

Bond Markets of various countries – Fixed and floating rate notes – Syndicate loans – Syndicated Eurocredits – ADR – GDR – Managing interest rate risk – Bond prices and yeils – Bond Management – tools and techniques

UNIT V INTERNATIONAL RISK ASSESSMENT AND OTHER INTERNATIONAL MARKETS

Country and political risk analysis – benefits and risks of international portfolio investment – assessing country creditworthiness – futures markets and instruments – option markets and instruments – option pricing – option pricing theory in financial risk assessment

TOTAL :45 PERIODS

COURSE OUTCOMES:

1. Learn about evolution, process and system of International Finance
2. Identify the concepts of international merger and acquisitions, financial techniques and regulations
3. Understand about international monetary system
4. Knowing about ADR, GDR and bond management
5. Explore the learning in international risk assessment

REFERENCES :

1. Apte P.G., International Financial Management, Tata McGraw Hill, 2011.
2. Jeff Madura, International Corporate Finance, Cengage Learning, 9th Edition, 2011.
3. Alan C. Shapiro, Multinational Financial Management, PHI Learning, 5th Edition, 2010.
4. Eunand Resnik, International Financial Management, Tata Mcgraw Hill, 5th Edition, 2011.
5. Website of Indian Government on EXIM policy