BMT6131 International Financial Management L T P J C

3 0 0 0 3
Pre-requisite BMT6115 Syllabus version
1.0
Course Objectives:
To provide students with a conceptual framework of how financial decisions are undertaken in a
multinational company and to familiarize students with unique economic factors that challenge a
financial manager in the international context.

Course Outcomes:
The students will be able to
1. Get knowledge on international monetary system.
2. Analyze foreign exchange market and evaluate foreign exchange exposure and risk
3. Conceptual and analytical frame work of international financial institutions and
working capital management.

Student Learning Outcomes 2,9,17

(SLO):
Module:1 Introduction to International Finance 4 hours
Introduction, Meaning, Nature, scope, Importance, Gold Standard, Bretton Woods system,
Exchange rate regimes, fixed and floating exchange rates.

Module:2 UNIT II: FOREIGN EXCHANGE MARKET 8 hours

Function and Structure of the Forex markets, major participants, types of transactions and
settlements, Foreign exchange quotations, process of arbitrage.

Module:3 MANAGEMENT OF FOREIGN EXCHANGE 6hours

EXPOSURE AND RISK

Types of Exposure, Foreign Currency Exposure, Economic Exposure, Operation exposure,

Interest rate exposure. Theories - Purchase Power Parity - Interest Rate Parity – International
Fisher Effect

Module:4 UNIT IV: CROSS-BORDER INVESTMENT 4 hours

DECISIONS

Capital budgeting, Approaches to Project Evaluation, Risk in Cross-border Investment

Decisions, Incorporate Risk in Investment Decisions. Financing Decisions of MNC`s.

Module:5 MULTINATIONAL FINANCING INSTITUTIONS 6 hours

AND WORKING CAPITAL MANAGEMENT

The International Bank for Reconstruction and Development, the International development
association, The International Finance Corporation, International monetary fund, Export and
Import financing.

Module:6 Contemporary Issues 2 hours

Guest Lecture from industry experts on contemporary International financial issues.

Proceedings of the 54th Academic Council [14.03.2019] 184

 Total Lecture hours: 30 hours
# Mode: Flipped Class Room, Case Discussions,
Lectures

1. Jeff Madura, Multinational Financial Management, New Delhi : Cengage Pvt Ltd, 2015
2. Apte P G, International Financial Management, New Delhi: Tata McGraw Hills,
publications, 2008.
3.Shapiro Alan C, Multinational Financial Management, New Delhi : Wiley India Pvt Ltd,
2008
4. T. Siddaiah International Financial Management, Pearson, 2009.

5 .O.P.Agarwal , International Financial Management Himalaya publishing house.

Reference Books
1. Machi Raju International Financial Management, HPH, 2008.
2. V. A Avadhani International Financial Management, Himalaya 2008
3. Eiteman & Stonchill, “Multinational Business Finance”, Addisen Wesley Longman, New
Delhi,2001
4. Adrian Buckley, “ The Essence of International Management”,1995
5. Abdullah Faud.A. “Financial Management for the Multinational Firm”, 1987.

Mode of Evaluation
Specific Assessment Methods % Weighting
1 2 3 4 5 6
Continue Assessment 40
Midterm 20

Final Assessment Test 40

Total 100
Recommended by Board of Studies 11.03.2019
Approved by Academic Council No. 54 Date 14.03.2019

Proceedings of the 54th Academic Council [14.03.2019] 185