INTERNATIONAL FINANCE & RISK

MANAGEMENT

Unit-1 Foreign Exchange: Meaning, foreign exchange

market, statutory base, exchange control, business
transacted by Authorized Dealers, development in
International Monetary scene-Brettonwoods to Euro.

Unit-2 Methods of International Trade settlement with special

reference to “Documentary Credit”, export finance-pre
and post shipment credit, factoring forfeiting, ECB,
Buyers and Suppliers credit.

Unit-3 The International Monetary Market: offshore banking

practices, International leading and crisis, IMF
conditionalities, country risk analysis

Unit-4 Exchange Rate: Understanding and computation of

exchange rate card, exchange rate determination,
Asset approach, Sterilization exchange rate and trade
balances, overshooting of exchange rate, equilibrium
approach, currency substitution, exchange rate move,
 BOP approach, Monetary approach, Charitism,
efficient markets, hypothesis

Unit-5 The Essence Of Currency Calculation: A deductive

proof of four way equivalent model, PPP theory,
interest theory, Fischer effect, Expectation theory

Unit-6 Foreign Exchange Risk & Types Of Exposure:Internal

and External techniques of managing exposure,
forward currency swaps, financial futures, option,
exchange arithmetic, short , long square position,
Hedge funds, Black and Schole ,model
 INTERNATIONAL ECONOMICS

Unit-1 Theories Of International Trade : Theories of absolute

advantage, comparative advantage and opportunity
costs, Modern theory, Heckscher-Ohllin theory,
International trade policy, Theory of international
finance, Open economic policy analysis.

Unit-2 Free Trade Versus Protection : International Vs.

domestic trade, Cases for free trade, Cases for
protection, Tariff and other barriers to trade,
Economic effects of tariffs and quotas, Non-tariff
barriers and their impllications
Unit-3 Balance Of Payments : Meaning and components,
equilibrium and disequilibrium, Traditional absorption
and monetary approach for adjustment, Foreign trade
multiplier, India’s balance of payments, Balance of
payments crisis.
Unit-4 Foreign Exchange : Foreign exchange markets, fixed
and flexible exchange rates, factors affecting exchange
rate, Purchasing Power Parity Theory, Currency
convertibility, Currency crisis, Monetary approach to
exchange rate, International Monetary System
Unit-5 The Theory Of Regional Blocs : forms of economic
cooperation, Rationale and economic progress of
SAARC/SAPTA & ASEAN regions, Regionalism
(EU, NAFTA), Multilateralism and WTO,
International trade and financial institutions-WTO,
UNCTAD, IBRD, IMF & Asian Development Bank-
their achievements and failures

Unit-6 Trade Policy & Reforms In India : Trade problems

and trade policies, Composition and direction foreign
trade, trade reforms, India’s International debt, MNCs
in India, Instruments of export promotion and recent
import and export policies and agenda for future