International Finance

MBAS 554: International Financial Management
Workload: 4Hours per week Total credit 04

Examination: 3 hours; 30 marks continuous evaluation and 70 marks final examination
Objectives:
1. Provides the concepts and structure of International Financial
2. Provides the details of sources of international finance.
3. Provides the strategies to tackle the risk in forex market.
4. Get an insight into the instruments traded in the international financial markets and financing
international trade.
Outcome of the course: On completion of this course students will be able to:
1. Understand the global financial environment and International Flow of funds.
2. Interpret the operation of financial market and exchange rate determination.
3. Recognize foreign exchange risk management.
4. Assess the various factors and methods to evaluate the country risk in the context of FDI.
5. Address the special issues involved in multinational capital budgeting and cash management.
Pedagogy:
Lectures, problem solving, case analysis, group discussion and seminars and assignments.
Module 1: Foundations of International Financial Management
Introduction, From International Economics to International Financial management,

Domestic Vs international financial management- foreign exchange and political risk, market
imperfections. Scope of International Financial Management, Need for International
Financial management- Globalization of World Economy- Multinational Corporations-
International Monetary system- Corporate Governance Around the World.
6 HOURS
Module 2: International Flow of Funds
Balance of payments- Meaning- Components- Principles for recording- significance and

limitations- Recent trends in Indian balance of payment- Capital Account Convertibility.
Module 3: Foreign Exchange Market

Functions of the Foreign Exchange Market- structure of foreign Exchange Market Transactions the
Foreign Exchange market- Foreign Exchange Rates and Quotations- computation of outright rates,
cross rates, Arbitrage- Two point Arbitrage, Triangular Arbitrage, Covered Interest Arbitrage.
International Parity conditions- Interest Rate Parity Theory and exchange rate determination,
Purchasing per Parity Theory-Absolute version, relative version, expectation form, Fisher Effect,
International fisher effect- Techniques of forecasting exchange rates in practice.
Module 4: Foreign Exchange Exposure and Managing Foreign Exchange Exposure

Exchange Rate Risk, Arguments for and against Hedging exchange rate risk, Types of Foreign
exchange exposure. Hedging Transaction exposure using: Forward market- Money market, Futures
Market and options. Measuring Economic Exposure- Determinants of Economic Exposure-
Managing Economic Exposure Translation or Accounting exposure: Methods of Translation-
Current/ Non Current, Monetary/ Non Monetary, Temporal and all current method.
Module 5: FDI and Country risk Analysis

FDI And motives of FDI- Firm specific advantages , Internationalization advantages, Country specific
advantages, Modern Approach to investment Appraisal- NPV, Real options, Game theory and strategy
and combined approach. Country risk analysis- Significance- Factors to be considered- Techniques to
assess the country risk- country risk rating, Measuring country risk, Market approach, Incorporating
country Risk in capital budget, reducing exposure to takeovers.
Module 6: International Capital budgeting

Multinational capital budgeting- special issues- evaluating international projects using adjusted
present value model (APV) - Risk adjustment in the capital budgeting analysis- sensitivity analysis-
purchasing power assumption- real options
Module 7: International Cash Management

Need for International Cash Management, Cash flow analysis from subsidiary perspective- Bilateral
netting of internal and external cash flows- Techniques to optimize cash flows- Accelerating cash
inflows-Minimizing currency conversion costs, managing blocked funds, managing inter-subsidiary
cash transfer- Investing excess cash- Centralized cash management- Diversifying cash across
currency- Dynamic hedging.
Module 8: Financial Markets and Instruments

International Capital Market – Instruments Traded, International Money Market and Instruments
Traded.
Module 9: International Trade Finance

The Trade relationship , benefits of system, key documents, government programmes to help finance
exports, trade financing alternatives, forfeiting medium and long term financing.
Module 10: Multinational Tax Management

The tax principle, types of tax, multinational tax management – transfer pricing policy (High mark-up
policy & Low mark-up policy), Tax havens and international offshore financial centres.
Reference Books:
1. Eun CS and Resnick BG (2017), International financial management, Tata
McGrawhillEducation (India) Pvt Ltd.
2. Madura Jeff (2015), International Financial Management 12th Edition, Cengage
Learning.
3. Eiteman David K., Stonehill Arthur I. , Moffett Michael H. (2018)Multinational Business
Finance, 14th Edition Pearson publication.
4. Madura Jeff (2010), International Corporate Finance, 10th Edition Cengage Learning.
5. Apte Prakash G.,(2018) International Finance, Tata McGrawhill Education (India) Pvt
Ltd.
6. Sharan Y. International Financial Management, PHI.
7. Dun and Broad Street, Foreign Exchange Market, Tata McGrawhill Education (India) Pvt
Ltd.
8. Levi Maurice, International Finance, Routledge Publication.
9. Shapiro C. Alan, (2010) Multi National Financial Management, 9th edition, Wiley India
Pvt Ltd.
10. Shapiro C. Alan and Moles Peter, (2016) International Financial Management, Wiley
India Pvt Ltd.
11. Jacque Laurent L. (2014): International Corporate Finance, John Wiley and Sons, Inc.,
New Jersey.
MANGALORE UNIVERSITY
Mangalagangothri – 574199
DEPARTMENT OF BUSINESS ADMINISRATION

in Association with
Internal Quality Assurance Cell (IQAC),
(IQAC) Mangalore University
United Nations Development Programme (UNDP)
Seventh Sense People
Peopl Development Solutions Pvt Ltd
Organizes
6 Days UNDP Entrepreneurship Development Training Program
06 December,
December 2021 to 11 December, 2021
Cordially Invite you to the
INAUGURAL FUNCTION
Dr. P Subrahmanya Yadapadithaya

Hon’ble
ble Vice Chancellor, Mangalore University
Will inaugurate
Ms. Deeksha N
Mr. Keerthanraj T. S
Mr. Ashwin Kumar
District Community Mobilizers
Mobilizer and EDP Trainer
Seventh Sense Sense People Development SolutionsPvt

Solutions Ltd and Inquilab Inventions
ventions Foundations
In the Presence of
Prof Manjunatha Pattabi
Director, IQAC
Mangalore University
And
Prof. Puttanna K
Chairman
Department of Business Administration
Mangalore University
Date: 6th December, 2021 Time: 09.00 AM
Venue
Venue: MBA Seminar Hall
MANGALORE UNIVERSITY
6 Days UNDP Entrepreneurship Development Training Program

06 December, 2021 - 11 December, 2021
Report
6 Days UNDP Entrepreneurship Development Training Program was organised in the

department in association with Internal Quality Assurance Cell (IQAC), Mangalore University,
United Nations Development Programme (UNDP) and Seventh Sense People Development
Solutions Pvt Ltd on 06 December, 2021 - 11 December, 2021.
The workshop was inaugurated by Prof. Puttanna. K, Chairman of the department and
Mr. Keerthanraj T. S, District Community Mobilizer, Seventh Sense People Development
Solutions Pvt Ltd. Experts from Seventh Sense People Development Solutions Pvt Ltd trained
our participants on various issues relates to social entrepreneurship. They used both lecture and
activity methods to train the participants. Their lecture covered broad aspects relates
entrepreneurship.
Three resource persons Mr. Keerthanraj T. S, Ms. Deeksha N and Mr. Ashwin Kumar
from Seventh Sense Sense People Development Solutions Pvt Ltd trained the participants. 61
students and 10 faculty members participated in the program. Certificate of participation is
issued to all the participants on successful completion the training.

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MBAS 554: International Financial Management

Workload: 4Hours per week Total credit 04

Module 1: Foundations of International Financial Management

Introduction, From International Economics to International Financial management,

Balance of payments- Meaning- Components- Principles for recording- significance and

Module 3: Foreign Exchange Market

Module 4: Foreign Exchange Exposure and Managing Foreign Exchange Exposure

Module 5: FDI and Country risk Analysis

Module 6: International Capital budgeting

Module 7: International Cash Management

Module 8: Financial Markets and Instruments

Module 9: International Trade Finance

Module 10: Multinational Tax Management

DEPARTMENT OF BUSINESS ADMINISRATION

Dr. P Subrahmanya Yadapadithaya

Seventh Sense Sense People Development SolutionsPvt

Date: 6th December, 2021 Time: 09.00 AM

6 Days UNDP Entrepreneurship Development Training Program

6 Days UNDP Entrepreneurship Development Training Program was organised in the

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