Course Contents 2013-14- Session Plan

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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Course Contents 2013-14- Session Plan

Documents

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