Page 1 of 3

S. K. School of Business Management

Hemchandracharya North Gujarat University, Patan.

Semester-IV
Sub: International Financial Management (IFM)
____________________________________________________________________________________
FACULTY: Ms. Jyoti Ghanchi
OBJECTIVE:
To acquaint the students with fundamental concepts of International Finance and Exchange Rate
Systems and also the tools, techniques and strategies to make International finance-related decisions.
CONTENTS:
Ms. Jyoti Ghanchi: International financial environment: An overview, International flow of funds,
Balance of payment, Development in international monetary system, Exchange rate mechanism
Foreign Exchange Market, Market for currency options and futures- Forecasting exchange rate, Nature
and measurement of foreign exposure, Foreign Exchange Exposure management- International
Investment decision Foreign direct investment, Portfolio Investment, International capital budgeting,
Evaluation and management of political risk- International Financing Decision: Overview, multilateral
development banks, international banking, financial swaps, management of interest rate riskManagement of Short-term funds: International working capital, Financing foreign trade, - International
Accounting, International indebtedness, Contemporary issues in international financial management
PEDAGOGY:
The following pedagogical tools will be used to teach this course:
1. Lectures & Discussions
2. Assignments & Presentations
3. Case Analysis
4. Numerical Problems Solving
5. Discussion on new paper articles & editorials
EVALUATION SCHEME:
1. Homework/ Projects/ Assignments/ Quizzes/ Individual or group 30 %
Presentation/ Class participation/ Case studies etc
2. Internal Examination
30 %
3. External Examination
40 %
BOOKS & MATERIAL:
Basic Text Book:
T1. Cheol Eun & Bruce Resnick, International Financial Manaagement, Latest Edition, Tata
McGraw Hill publication, New Delhi.

Reference Books:

Page 2 of 3
R1.C. Jeevnandam, Foreign Exchange and Risk Manaagement, Latest Edition, Sultan chand
publication.
R2.P. G. Apte, International Financial Manaagement, Latest Edition, PHI publication.
R3.Laurence Copeland, Exchange rates and International Finance, Latest Edition, Pearson
publication.
List of Journals/Periodicals/Magazines/Newspapers:
Journal of Finance , Monetary Economics ICFAI Journal, Money & Finance (ICRA Bulletin),
Public Finance, Treasury Management ICFAI Magazine, Business Standard, The Economic
Times, Financial Express, CFA Reader, Business Today, Business India, Business World,
Finance India
Useful Websites:
1. www.bloomberg.com
2. www.worldbank.org
3. www.imf.org
4. www.fxstreet.com
5. www.rbi.org.in

Protocols:
Students need to maintain one separate notebook for
class and one separate file for assignment.
It is compulsory for all the students to bring relevant text
book / material in the session.
Students without pre class preparation/homework,
required material or stationary item will not be allowed in
the session.
No consecutive 2 or more days leave is allowed. Students
are required to take the leave with prior permission.

Page 3 of 3

SESSION PLAN:
Sr.
No.
1.

2.

3.

4.

5.

6.

7.

Topics

No. Of
Sessions

Introduction to International Finance and the

Foundations of International Financial Management:
Globalization and Multinational Firm, International Monetary
System, Balance of Payments
The Foreign Exchange Market and Exchange Rate Determination :
The Market for Foreign Exchange: Relationship between Interest
rates, exchange rates, money supply, etc. Spot & Forward rates,
Direct and Indirect Rates,
International Parity Relationships and Forecasting Foreign Exchange
Rates
Currency Derivatives:
Futures and options on Foreign Exchange

Foreign Exchange Exposure and Management:

Management of Transaction Exposure, Management of Translation
Exposure
World Financial Markets and Institutions:
International Banking and Money Market, International Bond
Market, International Equity Market, Interest rate and currency
swaps
Financial Management of the Multinational Firm :
International Capital Budgeting

Exchange Rate Model:

The Mundell Flemming Model : Fixed vs. Floating Exchange Rate
mechanism and adoption of different policies
Interbank Deals, TT and Bill Transactions: (For Knowledge
Purpose)
TT Buying Rates, TT Selling Rates, Bill Buying & Bill Selling,
Interbank Deals

Text Book /
Reference
Book
TB 1, 2, 3

TB 5, 6
(Additional
Separate
material)

TB 7
(Additional
Separate
material)
TB 8, 10

TB 11, 12,
13, 14

TB - 18
(Additional
Separate
material)
(Additional
Separate
material)
R1 12, 13,
16