Lesson Plan- IfM Ultra Final

8/3/2019 Lesson Plan- IfM Ultra Final

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LESSON PLAN

08MBAFM426: International Finance Management

IV SEMESTER, M.B.A 2010- 2011

Teaching Faculty:

Vaibhav BadgiLecturer

RECOMMENDEDBOOKS:

1. Eun & ResnickInternational Finance Management ---(Tata McGraw Hill), 4/e

2. Jeff Madura International Finance Management ---(Thomson), 7/e, 2004

3. P.G. Apte-International Finance Management- ( Tata McGraw Hill), 4/e

Reference:

1. V. SharanInternational Finance Management- 3/e

2. Madhu Vij- Multinational Financial Management

Excel

3. Jain, Periyad, & YadavInternational Finance Management ---(Mc Millan)

4. P G ApteInternational Finance-A Business Pespective TMH, 1/e

5. V K BhallaInternational Finance Management ---(Anmol)

6. S P Srinivasan & Dr B Janakiram - International Finance Management --- (Biztantra Wiley Dreamtech, 2005)

7. Exchange Rate & International FinanceCoplandPearson.

8. David EietemanMultinational Business Finance Pearson Education, 10/e, 2003

9. Allan C ShapiroMultinational Financial Management John Wiley, 2004

10. BuckleyMultinational FinancePearson/PHI, 5/e

11. International Financial Markets

Machiraju

New Age International, 2004

12. International FinanceA case bookDesaiWiley India (P) Ltd.

13. Sathye Rose, Weston - International Financial ManagementJohn wiley2006

Course Title : RISK MANAGEMENT

Course Code : 08MBAFM427

Hrs / Week : 04 Hours

Total Hours : 56

I.A. Marks : 50

Exam Hours : 03

Exam Marks : 100


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Course Objectives:

1. The objectives of this course are two-fold.a. First, the course is intended to provide a comprehensive background in the strategic, economic, financial

and organizational aspects of International financial Environment-.

b. Secondly, the course will seek to provide a practical framework for managerial decision-making in the context ofRisk Management and investment decisions. Being a specialization course it will feature inputs from the instructor,

and readings, case studies and presentations by the students.

2. The course provides to the students: The Importance, rewards & risk of international finance- Goals of MNC-International Business methods Exposure to international risk- International Monetary system- Multilateral financial

institution-Government influence on exchange rate.

3. To understand International flow of funds:- Balance of payments(determination of CA, Cap account, & ORA)International Trade flows-International Capital Flows-Agencies that facilitate International flows Equilibrium,

disequilibrium & adjustment of Balance of payment & Trade deficits.

4. To understand and learn International Financial Markets:- Foreign exchange markets-foreign exchange trading-Cash & Spot exchange markets-foreign exchange rates & quotation- forward markets- Exchange rate

Behavior-Cross Rates-Foreign exchange market participants-arbitrage profit in foreign exchange markets, Swift

Mechanism

5. To acquaint students with Forecasting foreign Exchange rate:- Measuring exchange rate movements-Exchangerate equilibrium Factors effecting foreign exchange rate- forecasting exchange rates- international parity

relationship: interest rate parity, purchasing power parity & fisher effects

6. To expose the students to various aspects of Foreign Exchange exposure:- Management of Transactionexposure- Management of Translation exposure- Management of Economic exposure- Management of

political Exposure- Management of Interest rate exposure.

7. Understand how Foreign exchange risk Management: Hedging against foreign exchange exposure Forwardmarket- Futures Market- options Market- Currency Swaps-Interest rate Swap- Cross currency Swaps-Hedging

through currency of invoicing- Hedging through mixed currency invoicing Hedging through selection of supplying

country. Country risk analysis

8. To study and understand the method involved in International Capital Budgeting: Problems associated , Evaluation of aproject, Factors affecting, Risk Evaluation, Impact on Value

9. To help student analysis and understand Long term Asset & Liability management:- Foreign Direct investment Foreign portfolio investment- International Financial instruments : International Bond & Equity market. Short term

Asst & liability management:-Working Capital Policy-Cash management Receivable Management- Inventory

Management- Short term Financing decision international Banking and money market.


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LESSON PLAN

Subject: 08 MBA FM 426: INTERNATIONAL FINANCIAL MANAGEMENT ,


Period Topics - Break down % covered Percentage

MODULE 1: International financial EnvironmentUnderstand the meaning of International financial Environment

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1-2The Importance, rewards & risk of international finance- Goals of MNC-

International Business methods

3-4Exposure to international risk- International Monetary system- Multilateral

financial institution-Government influence on exchange rate.

MODULE 2: International flow of funds

Provides the foundation for understanding the Balance of payments

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5-6Determination of current account, capital account & ORA International Trade

flows-International Capital Flows

7-8Agencies that facilitate International flows Equilibrium, disequilibrium &

adjustment of Balance of payment & Trade deficits.

MODULE 3: International Financial Markets

To understand and learn various aspects of International Financial Markets

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10-11 Introduction to International Financial Markets, Foreign exchange markets-

12-13 Foreign exchange trading- Cash & Spot exchange markets

14-15 Foreign exchange rates & quotations forward markets

16-17 Exchange Beh avi or-CrossRates-Foreign exchan ge mark et par tic ipa nts -

18-19 Arbitrage profit in foreign exchange markets, Swift Mechanism.20-21 Swift Mechanism

MODULE 4: International Parity Conditions

Provides the understanding of Forecasting foreign Exchange rate:- 18 50

22-23Measuring exchange rate movements-Exchange rate equilibrium Factors

effecting foreign exchange rate- forecasting exchange rates

24-25 International parity relationship:

26-27 Interest rate parity, purchasing power parity

28-29 Fisher effects & International Fisher Effect

MODULE 5: Forex Exposure

To understand how Fundamental & T ec hn ic al An a l ys i s o f Forex Exposure.plays a central

role in the strategic decision-making process- study valuation approaches

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29-30 Foreign Exchange exposure:- Management of Transaction exposure-

31-32 Management of Translation exposure-


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33-34 Management of Economic exposure - Management of political Exposure-.

35-36 Management of Interest rate exposure.

MODULE 6: Foreign exchange risk Management

To familiarize with Foreign exchange risk Management and understanding the usage of Swaps

and Hedging

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37-38 Foreign exchange risk Management: Hedging against foreign exchange

exposure Forward market

39-40 Futures Market- options Market- Currency Swaps-Interest rate Swap

41-42 Cross currency Swaps-Hedging through currency of invoicing- Hedging

through mixed currency invoicing

43-44 Hedging through selection of supplying country. Country risk analysis

MODULE 7: International Capital Budgeting:

In depth understanding International Capital Budgeting decisions

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45-46 Concept, Problems associated Evaluation of a project

47-48 Factors affecting, Risk Evaluation, Impact on Value

MODULE 8: Long term Asset & Liability management:-

To provide an evaluation technique for the Receivable and Payables Management

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49-50 Long term Asset & Liability management- Foreign Direct investment

Foreign portfolio investment-

51-52 International Financial instruments: International Bond & Equity market. Short

term Asst & liability management:-

53-54 Working Capital Policy-Cash management Receivable Management-

Inventory Management-

55-56 Short term Financing decision

international Banking and money market


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Course Outcomes:

Upon completion of this course, the student will be able to:

1. Understand International financial Environment International Business methods Exposure to international risk-International Monetary system, International flow of funds:- Balance of payments, International Financial

Markets various strategic approaches their implication.

2. Understand various methods of Forecasting foreign Exchange rate, Exchange rate Beha vi or -Cross Rates-Foreignexchange market par t icipants .

3. Students would be acquaint with International Trade flows-International Capital Flows-Agencies that facilitateInternational flows Equilibrium, disequilibrium & adjustment of Balance of payment & Trade deficits.

4. Students can analysis various aspects like Foreign Exchange exposure:- Management of Transaction exposure-Management of Translation exposure- Management of Economic exposure- Management of political

Exposure- Interest rate exposure.

5. Understand Foreign exchange risk can be minimized by Hedging against foreign exchange exposure Forward market- Futures Market- options Market- Currency Swaps-Interest rate Swap- Cross currency Swaps-

Hedging through currency of invoicing- Hedging through mixed currency invoicing Hedging through selection

of supplying country.

6. Understand the method involved in International Capital Budgeting: Concept, Problems associated ,Evaluation of aproject, Factors affecting, Risk Evaluation, Impact on Value

7. Student shall be able to analysis and understand Long term Asset & Liability management: - Foreign DirectinvestmentForeign portfolio investment- International Financial instruments: International Bond & Equity

market.

8. Understand the Short term Asst & liability management:-Working Capital Policy-Cash management Receivable Management- Inventory Management- Short term financing decision international

Banking and money market.


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ASSIGNMENTS

08 MBA FM 426: INTERNATIONAL FINANCIAL MANAGEMENT ,


Module 1

1 Explain International Financial Management2 Explain the Importance, rewards & risk of international finance-

3 Explain Goals of MNC- International Business methods

4 Explain International Monetary system- Exposure to international risk-

5 Explain multilateral financial institution-Government influence on exchange

Module 2

6 Explain in detail International flow of funds:-

7 Explain Balance of payments(determination of current account, capital account & ORA)

8 Explain International Trade flows-International Capital Flows-Equilibrium, disequilibrium

9 Write a note on adjustment of Balance of payment & Trade deficits

10 Write Essential elements in strategic planning

Module 3

11 Write a detail short note on International Financial Markets:-

12Write a detail short note Foreign exchange markets-foreign exchange trading- Cash & Spot

exchange markets-

13Write a detail short note on foreign exchange rates & quotation- forward markets- Exchange

rate Behavior

14 Write a detail short note Cross Rates-Foreign exchange market participants-

15 Write a detail short note arbitrage profit in foreign exchange markets and Swift Mechanism.

Module 4

16 Write a detail short note on Forecasting foreign Exchange rate

17 Write a detail short note on Measuring exchange rate movements

18 Explain in detail Factors effecting foreign exchange rate

19 Explain in detail forecasting exchange rates

20 Explain in detail international parity relationship

Module 5

21 Explain Foreign Exchange exposure Management of Transaction exposure

22 Write a short note Management of Translation exposure

23 Write a short note on Management of Economic exposure

24 Write a short note on Management of political Exposure

25 Write a short note Management of Interest rate exposure

Module 6


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26 Write a short note Hedging against foreign exchange exposure Forward market

27 Write a short note on Futures Market- options Market

28 Write a short note on Currency Swaps-Interest rate Swap- Cross currency Swaps

29 Explain Hedging through currency of invoicing

30 Explain country risk analysis

Module 7

31 Write a short note on Long te rm Asset & Liability ma na ge ment :

32 Explain various Fo re ig n Di re ct investmentForeign portfolio investment

33 Explain various - International Financial instruments:

34 What are International Bond

35 What are Equity markets

Module 8

36 Write a short note on Short term Asst & liability management:-

37 Write a short note on Working Capital Policy, Cash management & Inventory Mgt

38 Write a short note on Sh or t te r m fi na nc in g de ci si on

Receivable Management

39 Write a short note on international Banking and

40 Write a short note on money market

Students Evaluation Marks Break-up

Internal Assessment Theory Test25 marks

Faculty Assessment - 25 marks Home assignment- 10 marks Class assignment- 10 marks Presentation - 5 marks

Lesson Plan- IfM Ultra Final

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