Course Learning
Outcomes (CLO):
CLO-1
CLO-2
CLO-3
CLO-4
CLO-5
At the end of this course, learners will be able to:
To introduce the environment of international finance and its implications on
global business and foreign exchange.
To understand the types of exchange rates, its determination and to compare
exchange rate variations.
To have an understanding of how to use foreign exchange derivatives and other
techniques to manage foreign exchange exposures and mitigate risks.
To apply and integrate the global developments with the changing business
environment.
To assess a international project in terms of its financial, economic, technical and
management and governance viability.
1 2 3
1
2
3
4
5
6
PO6 – Leadership and Team Work
Study of monetary systems and global business environment will provide the
basic knowledge of existence of international financial markets and foreign
exchange markets
A basic understanding of the various types of exchange rates and its
determination becomes important for people dealing in international business.
Most businesses today are either directly or indirectly exposed to international
competition. Managing such businesses requires understanding of currency
risks.
The regulatory framework for international finance sets basic guidelines for
exchange of foreign currencies and accelerates short and long term international
finance.
Taxation is a critical factor to international businesses because investors highly
consider it before deciding to invest in a certain region in the world.
On completion of this course the students should be in a position to exhibit the
following learning skills:
Program Learning Outcomes (PLO)
PO5 – Effective Communication
CLR-5 :
Learning
The purpose of learning this course is to:
PO4 – Social Responsiveness and Ethics
CLR-4 :
Data Book / Codes/Standards
PO3 - Global Exposure and cross cultural
understanding
CLR-3 :
Progressive
Courses
PO2 - Critical Thinking Business Analysis,
Problem solving and Innovation
CLR-2 :
Faculty of Management
L T P C
2 0 2 3
Elective Course
PO1- Business Environment and Domain
Knowledge
CLR-1 :
Co-requisite
Courses
1
60 50
M
H
H
M
L
M
1
50 70
L
H
L
L
M
M
2
80 75
M
H
L
L
M
M
2
80 70
M
H
M
L
M
M
3
90 80
M
H
H
L
M
M
Expected Attainment (%)
Course Learning
Rationale (CLR):
Nil
Expected Proficiency (%)
Pre-requisite
Courses
Course Offering
Department
Course
Category
International Finance
Level of Thinking (Bloom)
Course
Course
MB18FM07
Code
Name
College of Management, SRM Institute of Science & Technology – Academic Curricula (2018 Regulations)
1
Duration
(hour)
6
Basic Introduction
SLO-1 to International
Finance
S-1
Significance and
importance
SLO-2
of International
Finance
SLO-1
S-2
Global business
environment
Factors affecting
SLO-2 global business
environment
6
6
6
Understanding Parity
theory and conditions
Introduction to financial Understanding
Introduction to
exposure
Regulatory Framework international project
The law of one price
and purchasing power
parity theory
Types of financial
exposures
The Fisher effect and
International Fisher
effect
Managing Transaction
exposure with
illustration
Interest rate parity and
unbiased forward rate
Components of
operating exposure
Structuring and policy
framework for an
efficient financial
regulation
Project appraisal meaning and scope
Financial Regulatory
structure in India
Techniques of Project
Appraisal
Regulatory framework Techniques of Project
for international finance Appraisal
Role of RBI with
Translation exposure
reference to
and financial decisions
international finance
S-3
Economic exposure and
Global monetary
Forces behind exchange
SLO-2
comparison with other Role of FEMA
rate determination
orders
financial exposures
Stages of
Short term financial
Risks associated with
SLO-1 International
Exchange rate regimes
management in a global
financial exposures
monetary system
set-up
S-4
Evolution of India’s Exchange rate
Risk Management
Short term financial
Exchange Rate
management in India
SLO-2
Strategies – hedging,
management in a global
System
speculation, arbitrage set-up
SLO-1
6
History of monetary Theories of Exchange
systems
rate determination
Types of exchange rates
Evolution and
SLO-1 practices in foreign
exchange markets
Factors affecting the
S-5
Participants and
change of exchange rate
instruments in
SLO-2
foreign exchange
market
Internal and external
techniques of hedging
Internal and external
techniques of hedging
Issues in International
Project Appraisal
APV technique
Real option value and
portfolio approach
Case Study
Long term financial
Accounting in
management in a global
International business
set-up
International accounting
standards –
Case study
Characteristics and
determinants
College of Management, SRM Institute of Science & Technology – Academic Curricula (2018 Regulations)
2
S-6
International
SLO-1
Financial Markets
Forms of
SLO-2 International
Financial Markets
Treasury functions
Steps and procedure to Derivatives – meaning –
related to International
calculate bill rate
significance
finance
Treasury functions
Steps and procedure to
Types of derivatives
related to International
calculate exchange rate
finance
Taxation in International
business
Taxation in International
business
1. Jeff Madhura, “International Financial Management”, 10th edition, Cengage Learning, 2010.
2. Michael Moffett, Arthur Stonehill, David Eiteman,”Fundamentals of Multinational Finance”, International Edition, 4th
Learning Edition, Pearson Publications, August 2011,
Resources 3. Cheol S. Eun And Bruce G. Resnick, “International Financial Management”, Tata McGraw Hill, 2010.
4. Apte P.G, “International Financial Management”, 6th edition, Tata McGraw Hill, 2011.
Learning Assessment
Continuous Learning Assessment (50% weightage)
Final Examination
Bloom’s
(50% weightage)
Level of
CLA – 1 (10%)
CLA – 2 (15%)
CLA – 3 (15%)
CLA – 4 (10%)
Thinking Theory Practice Theory Practice Theory Practice Theory Practice
Theory
Practice
Remember
Level 1
15
15
20
20
15
15
15
15
15
15
Understand
Apply
Level 2
20
20
15
15
15
15
20
20
20
20
Analyze
Evaluate
Level 3
15
15
15
15
20
20
15
15
15
15
Create
Total
100 %
100 %
100 %
100 %
100 %
# CLA – 4 can be from any combination of these: Assignments, Seminars, Tech Talks, Mini-Projects, Case-Studies, Self-Study,
MOOCs, Certifications, Conference Paper, etc.
Course Designers
Experts from Industry
Experts from Higher Technical Institutions Internal Experts
Dr. Narasimhan, IIM, Bangalore
Dr. V. M. Ponniah
Mr. T.N. Sekhar, CA, CIMA
Dr. R. Maheswaran, ICWA, MBA, Ph.D
Dr. Thenmozhi, IIT Madras
Dr. T. Vijayakumar
College of Management, SRM Institute of Science & Technology – Academic Curricula (2018 Regulations)
3