B.

COM 6TH SEM SYLLABUS ORIENTATION PROGRAM

Organised by

SRI KRISHNA DEGREE COLLEGE

Subject Discussion
By

Dr.K. Rajeswari
Associate Professor
Department of Commerce and Management
Nagarjuna Degree College
Yelahanka, Bengaluru

For International Finance

Date:09/06/2022
 International Finance
Unit – 1
Global Financial Environment

Evolution of International Monetary System, Bimetallism,

Classical Gold Standard, Interwar Period, Bretton Woods
System, Flexible Exchange Rate Regime, the current Exchange
Rate Agreements, European Monetary System, Fixed vs.
Flexible Exchange Rate Regime.

Unit-I

1. What is the meaning of International Finance? Sec - A

2. What is the difference between Fixed and Flexible Exchange
Rate? Sec - B
3. Explain in detail the Evolution of International Monetary
System? Sec- C
 Unit – 2

International Financial Decisions

International Capital Budgeting, Influence of Inflation on
Capital Budgeting Decisions, Evaluation of Foreign Projects,
Home Currency Approach and Foreign Currency Approach,
International Financing Decisions, Source of Finance, ADRs,
GDRS, ECBs, FCCBs, Masala Bonds, International Working
Capital Management, Netting, Leads and Lags

Unit- II

1. Define Netting. Sec - A

2. What are Masala Bonds? Sec – A
3. Write a short note on ADRs and ECBs. Sec - B
4. What are the factors affecting International Capital Budgeting?
Sec – C
 Unit – 3

Exchange Rate Determination

Purchasing Power Parity Theory, Interest Rate Parity Theory,
International Fischer’s Effect and Pure Expectations Theory

Unit- III

1. Give the meaning of international fisher’s effect theory? Sec- A

2. What are the advantages and disadvantages of purchasing power
parity theory? Sec – C
 Unit – 4

Foreign Exchange Risk and Risk Hedging

Strategies
Transaction Risk, Translation Risk, Economic Risk. Risk
Hedging Strategies: Internal, Netting, Leads and Lags.
External, Forwards, Futures, Options, Money-market Hedging,
Currency Swaps

Unit- IV

1. Define Hedging. Sec – A

2. Explain the difference between Forward and Future Contracts.
Sec – B
3. Define money marketing? What are the functions and
limitations of money market? Sec – C
 Unit – 5

Interest Rate Risk and Risk Hedging Strategies

Interest Rate Swaps, Forward Rate Agreements, Interest Rate
Futures, Interest Rate Options, Caps, Floors and Collars,
Swaption

Unit- V

1. What is interest rate SWAP? Sec – A

2. What is interest rate caps? Sec – A
3. Write a short note on Interest Rate Options. Sec- B
 Marks Allocation - Unit wise
Chapter Sec- A Sec- B Sec-C Total
Chapter-I 2 Mark (1Q) 5 Mark (1Q) 15 Mark (1Q) 22

Chapter-II 4 Mark (2Q) 5 Mark (1Q) 15 Mark (1Q) 24

Chapter-III 2 Mark (1Q) - 15 Mark (1Q) 17

Chapter-IV 2 Mark (1Q) 5 Mark (1Q) 15 Mark (1Q) 22

Chapter-V 4 Mark (2Q) 5 Mark (1Q) - 09

Question Paper Pattern

Section – A

7 Questions (5*2=10)

Section – B

4 Questions (3*5 = 15)

Section – C

4 Questions (3*15 = 45)

Thank You