B Com Semester VI - INTERNATIONAL FINANCE

UNIT–I: INTRODUCTION: International Finance: Meaning – Nature - Scope – Importance – Features - Goals - IFM and Domestic Financial Management – Role of International Financial Manager in Multinational Corporations - Relationship between IFM and Other Management Areas – International Financial Environment (Theory). 

UNIT–II: INTERNATIONAL MONETARY SYSTEM: Specie Commodity Standard – Gold Standard – Bretton Woods System of Exchange Rates – Exchange Rate Regime since 1973 – International Liquidity – IMF Solution for Financial Crisis (Theory). 

UNIT–III: FOREIGN EXCHANGE MARKET: Distinctive Features – Major Participants – Spot Market – Features – Currency Arbitrage in Spot Market – Speculation in Spot Market – Forward Market – Features – Arbitrage in Forward Market – Forward Market Hedging – Speculation in Forward Market – Swapping of Forward Contracts (Simple Problems). 

UNIT–IV: EXCHANGE RATE MECHANISM: Exchange Rate Quotations – Nominal, Real and Effective Exchange Rates – Determination of Exchange Rate in the Spot Market – Factors – Exchange Rate Determination in Forward Market (Simple Problems). 

UNIT–V: INTERNATIONAL FLOW OF FUNDS: Balance of Payment – Methods of Compilation of Statistics of Balance of Payments – Current Account – Capital Account – Uses of Balance of Payments (Simple Problems)