School of Petroleum Management, PDPU

MBA (E&I)/ MBA (General Management)

Academic Session: 2016-18 TERM: 6

Title of the course: International Finance

Credits: 1.5
Name of the faculty member: Dr. Narayan Baser
Core/Visiting: Core
Phone & Mobile numbers: 9427340390
Email: Narayan.baser@spm.pdpu.ac.in

COURSE DESCRIPTION:
This course is designed to expose the students to global financing markets, instruments and various
strategies of hedging for maximization of share holder’s wealth. The quantitative tools covered in
this course make students competent to understand the transactions of a dealing room and help in
grooming their negotiating skills in the international markets. This course is designed to give the
students a working knowledge on how derivative securities can be used to hedge foreign exchange
exposure. The emphasis is on exploring the properties of options and futures as derivatives and on
providing a framework for hedging
COURSE OBJECTIVES:
1. To apply the concepts, terminology and theories of International Finance
2. To understand, classify and analyze the foreign exchange exposure with appropriate
hedging tools
Overall PEDAGOGY / TEACHING METHOD:
The latest educational methods and strategies are employed. The course is designed to maximize
student participation. From the outset, the goals of each student are discussed to ensure needs are
fulfilled as far as possible. Questions and Answers are encouraged throughout, during the case
studies and at the daily wrap-up sessions. This gives students the opportunity to discuss with other
students and present their specific problems and appropriate solutions. All students take away a
manual of all the material presented. Only minimum note taking is encouraged to ensure maximum
student attention during the sessions or seminars.
Students are expected to put forth the necessary effort to enable achievement of the objectives
stated above. This includes regular class attendance, participation in class discussions, and the
completion of other assignments and project work deemed necessary by the instructor. Attendance
is strongly encouraged. Anyone who drops the class should, as a matter of courtesy, inform the
instructor. Such notification will permit the instructor to keep his records current.
Recommended Text*:
1. “International Corporate Finance”, By Madura, J., Cengage Learning, 10th edition
Reference Book(s) if any:
1. “Foreign Exchange & Risk Management” By C. Jeevanandam, S. Chand & sons, 10th edition
2. “International Financial Management” By Thummuluri S., Pearson Edu., 1st edition
3. “International Financial Management” By P. G. Apte,, Tata McGraw-Hill Publishing Ltd., 3rd Ed.
4. “International Financial Management” By Cheol S. Eun & Bruce G. Resnick, Tata McGraw-Hill
Publishing Ltd., latest Edition (Text)
5. “International Financial Management” By Vyuptakesh Sharan, Prentice Hall of India, 4th Edition
Magazine(s)/Journal(s)/Web link(s):
http://www.rbi.org.in/
http://www.iif.com/
http://www.imf.org/
http://www.economist.com/markets/currency/
http://today.reuters.com/Investing/Currencies.aspx
Evaluation Components**
Class Participation
Assignments
Quiz
Term Examination
Total
Schedule of Sessions (Session wise details to be provided):
Session Topic
International Financial
1 Decision to expand
Management: Overview
The Foreign Exchange
2 Market: Structure and
operations
Exchange rate arithmetic
3-4 – Direct, Indirect, & cross
rates
The International
Monetary system and
5 Ch.4 of Text
Exchange rate
determination
6 Balance of Payments
International
7
Parity Relationship
Management of
8-9
Transaction Exposure
Management of
10
Economic Exposure
(Signature of the Faculty)
(Signature of the Dean)
Weight (%)
: 10
: 20
: 20
: 50
: 100
Session Readings / case / Chapter
Methodology
Objective/s etc.
Ch.1 of Text
To understand the
Case from text: Blades Inc.:
structure and goal of MNCs Lecture and
and importance of case study
Case via email: Nike &
International Finance
Sweatshop Labour
Ch-3 of Text (pg 55 to 64)
To acquaint the students Reading Material
Lecture and
with Forex market Problems: At Random
case study
structure and operations Case via email: Shrewsbury
Herbal Ltd.
To learn how to calculate
Reading Material Lecture and small
TT and Bill rates for Forex
Problems: At Random numerical
transactions
To discuss the evolution of
www.imf.org
International Monetary
Lecture
system and exchange rate
Ch.6 of Text
determination
Ch.2 of Text
To learn the BOP and its
Case via email: Maxico’s Lecture
impact on exchange rate
BOP
To understand the IRP Ch.7 and 8 of text Lecture and small
theories and applications Problems: At Random numerical
Ch. 11 of Text
To discuss about the
Case via email: Airbus Lecture and
methods of handling
Dollor Exposure case study
transaction exposure
Problems: At Random
Ch. 12 of Text,
To analyze the Economic Case: Savor Co.s Dilemma
Lecture and
exposure arising from Case via email: Albion
case study
international transaction Computers
Problems: At Random