INTERNATIONAL FINANCIAL MANAGEMENT Sub Code: 10MBAFM426 IA Marks: 50 10MBABF476 10MBAIB466 No. of Lecture Hrs / Week: 04 Exam Hours: 3 Hours Total no. of Lecture Hours: 56 Exam Marks: 100MODULE 1 (4 Hours)International financial Environment- The Importance, rewards & risk of internationalfinance- Goals of MNC- International Business methods – Exposure to international risk-International Monetary system- Multilateral financial institution-Government influence onexchange rate.MODULE 2 (4 Hours)International flow of funds:- Balance of payments(determination of current account, capitalaccount & ORA)-International Trade flows-International Capital Flows-Agencies thatfacilitate International flows – Equilibrium, disequilibrium & adjustment of Balance ofpayment & Trade deficits.MODULE 3 (10 Hours)International Financial Markets:- Foreign exchange markets-foreign exchange trading-Cash& Spot exchange markets-foreign exchange rates & quotation- forward markets-Exchange rateBehavior-Cross Rates-Foreign exchange market participants-arbitrage profit in foreignexchange markets, Swift Mechanism.MODULE 4 (10 Hours)Forecasting foreign Exchange rate:- Measuring exchange rate movements-Exchange rateequilibrium – Factors effecting foreign exchange rate- forecasting exchange rates-international parity relationship: interest rate parity, purchasing power parity & fisher effects.MODULE 5 (8 Hours)Foreign Exchange exposure:- Management of Transaction exposure- Management ofTranslation exposure- Management of Economic exposure- Management of politicalExposure- Management of Interest rate exposure.MODULE 6 (8 Hours)Foreign exchange risk Management: Hedging against foreign exchange exposure – Forwardmarket- Futures Market- options Market- Currency Swaps-Interest rate Swap- Cross currencySwaps-Hedging through currency of invoicing- Hedging through mixed currency invoicing –Hedging through selection of supplying country.Country risk analysisMODULE 7 (4 Hours)International Capital Budgeting: Concept, Problems associated, Evaluation of a project,Factors affecting, Risk Evaluation, Impact on Value.MODULE 8 (8 Hours)Long term Asset & Liability management:- Foreign Direct investment – Foreign portfolioinvestment- International Financial instruments : International Bond & Equity market.Short term Asst & liability management:-Working Capital Policy-Cash management –Receivable Management- Inventory Management- Short term Financing decision –international Banking and money market.
RECOMMENDED BOOKS:1. Eun & Resnick – International Finance Management ---(Tata McGraw Hill), 4/e2. Jeff Madura International Finance Management ---(Thomson), 7/e, 20043. P.G. Apte-International Finance Management- ( Tata McGraw Hill), 4/eREFERENCE BOOKS:1. V. Sharan – International Finance Management- 3/e2. Madhu Vij- Multinational Financial Management – Excel3. Jain, Periyad, & Yadav – International Finance Management ---(Mc Millan)4. P G Apte – International Finance-A Business Pespective – TMH, 1/e5. V K Bhalla– International Finance Management ---(Anmol)6. S P Srinivasan & Dr B Janakiram - International Finance Management ---(Biztantra Wiley Dreamtech, 2005)7. Exchange Rate & International Finance – Copland – Pearson, PHI.8. David Eieteman – Multinational Business Finance – Pearson Education, 10/e, 20039. Allan C Shapiro – Multinational Financial Management – John Wiley, 200410. Buckley – Multinational Finance – Pearson/PHI, 5/e11. International Financial Markets – Machiraju – New Age International, 200412. International Finance – A case book – Desai – Wiley India (P) Ltd.13. Sathye Rose, Weston - International Financial Management – John wiley – 200614. International Corporate Finance, Madhura, Thomson, 8 Ed.
RISK MANAGEMENT Sub Code: 10MBAFM427 IA Marks: 50 No. of Lecture Hrs / Week: 04 Exam Hours: 3 Hours Total no. of Lecture Hours: 56 Exam Marks: 100MODULE 1 (4 Hours)Over view of Risk, Risk identification, Risk, Insurance and Management: Introduction to Riskand Insurance. Risk identification and Risk Evaluation,Risk assessment & Management- Risk analysis: Exposure of physical assets, financial assets,and Human assets, Exposure to legal liability. Risk Management, Risk control.MODULE 2 (7 Hours)Risk Management using futures and forwards differences-valuation of futures, valuation oflong and short forward contract. Mechanics of buying &selling futures, Margins, Hedgingusing futures -specification of futures -Commodity futures, Index futures interest rate futures-arbitrage opportunities.MODULE 3 (8 Hours)Risk Management using Swaps: Mechanics of interest rate swaps –volatility of interest rateswaps –currency swaps –valuation of currency swaps.MODULE 4 (10 Hours)Risk Management using Options: Types of options, option pricing, factors affecting optionpricing – call and put options on dividend and non-dividend paying stocks put-call parity-mechanics of options- stock options- options on stock index- options on futures – interest rateoptions. Concept of exoctic option.Hedging & Trading strategies involving options, valuation of option: basic model, one stepbinomial model, Black and Scholes analysis, option Greeks. Arbitrage profits in options.MODULE 5 (7 Hours)Commodity derivatives: commodity futures market-exchanges for commodity futures inIndia, Forward markets, commissions and regulation-commodities traded – trading andsettlements – physical delivery of commodities.MODULE 6 (7 Hours)Interest rate markets-Type of rates, Zero rates, Bond pricing, Determining Zero rates,Farward rules, Farward rate agreements (FRA), Treasury bond& Treasury note futures, Interest rate derivatives (Black model).MODULE 7 (5 Hours)Credit risk-Bond prices and the probability of default, Historical default experience,Reducing exposure to Credit risk, Credit default swaps, Total return swaps, Credit spreadoptions, Collateralized debt obligation.MODULE 8 (8 Hours)Value at Risk (VAR)-Measure, Historical simulation, Model building approach, linearapproach, Quadratic model, Monte Carlo simulation, stress testing and back testing
ENTREPRENEURSHIP DEVELOPMENT Sub Code: 10MBA42 IA Marks: 50 No. of Lecture Hours / Week: 04 Exam Hours: 3 Hours Total no. of Lecture Hrs: 56 Exam Marks: 100MODULE 1 (8 Hours)Entrepreneur: Meaning of Entrepreneur; Evolution of the Concept; Functions of anEntrepreneur, Types of entrepreneur, Intrapreneur – an emerging class, Concept ofEntrepreneurship-Evolution of Entrepreneurship; Development of Entrepreneurship; Theentrepreneurial Culture; Stages in entrepreneurial process.MODULE 2 (6 Hours)Creativity and Innovation: Creativity, Exercises on Creativity, Source of New Idea, Ideas intoOpportunities.Creative problem solving: Heuristics, Brainstorming, Synectics, Value AnalysisInnovation and Entrepreneurship: Profits and Innovation, Globalization, Modules ofInnovation, Sources and Transfer of Innovation, Why Innovate, What Innovation, How toInnovate, Who Innovates.MODULE 3 (14 Hours)Business Planning ProcessMeaning of business plan, Business plan process, Advantages of business planning, Marketingplan, Production/operations plan, Organizational plan, financial plan, Final project report withfeasibility study, preparing a model project report for starting a new venture.MODULE 4 (6 Hours)Institutions supporting entrepreneursSmall industry financing developing countries, A brief overview of financial institutions inIndia, Central level and state level institutions, SIDBI, NABARD, IDBI, SIDO, Indian Instituteof Entrepreneurship, DIC, Single window, Latest Industrial policy of Government of IndiaMODULE 5 (6 Hours)Family BusinessImportance of family business, Types, History, Responsibilities and rights of shareholders of afamily business, Succession in family business, Pitfalls of the family business, strategies forimproving the capability of family business, Improving family business performance.MODULE 6 (8 Hours)International Entrepreneurship Opportunities: The nature of international entrepreneurship,Importance of international business to the firm, International versus domestic entrepreneurship,Stages of economic development, Entrepreneurship entry into international business, exporting,Direct foreign investment, barriers to international trade.MODULE 7 (4 Hours)Informal risk capital and venture capital: Informal risk capital market, venture capital, natureand overview, venture capital process, locating venture capitalists, approaching venturecapitalists.MODULE 8 (4 Hours)Managing growth: Using external parties to help grow a business, franchising, advantages andlimitations, investing in a franchise, joint ventures- types, Acquisitions and mergers
RECOMMENDED BOOKS:1. Poornima Charantimath, Entrepreneurship Development-Small Business Enterprise, PearsonEducation, 20072. Robert D Hisrich, Michael P Peters, Dean A Shepherd, Entrepreneurship, 6th Edition, TheMcGraw-Hill Companies, 2007REFERENCE BOOKS:1. Dr. Mathew J. Manimala, Entrepreneurship theory at crossroads, Biztantra, 20072. Vasant Desai, Entrepreneurial Development and Management, Himalaya Publishing House,20073. Maddhurima Lall, Shikha Sahai, Entrepreneurship, Excel Books, 20064. Kurakto, Entrepreneurship-Principles and practices, 7th Edition, 2007, Thomson publication