Course Plan

1. International Finance
- Course Plan
Dr Raju Indukoori

2. Course Objectives
This course is designed to
• familiarize students with Corporate finance
dynamics in International markets, economies
and risk settings.
• familiarize various processes, transactions and
management systems to maximize the profits
and minimize the risk
Raju Indukoori

3. Syllabus
• Unit 1
International Financial System
• Unit 2
Foreign Exchange Markets
• Unit 3
Foreign Direct Investments and Corporate Finance
• Unit 4
International Financial Risk Management
• Unit 5
International Pricing and Tax Environment
Raju Indukoori

4. Unit 1
International Financial System
Raju Indukoori
# TOPIC
No of
sessions
1
Evolution of international financial system, Bretton Wood
system 1
2
Floating exchange rate, currency board, sterilized and
unsterilized intervention 2
3
international financial markets- euro market, international
bond market, equity market, international money markets, 3
4
Global financial institutions, IMF, Bank for International
Settlements, International Banking, Euro bank 2
5
International financial instruments, Euro CP, Eurobonds,
foreign bonds, global bonds, euro equity, ADR, GDRs 3

5. Unit 2
Foreign Exchange Markets
Raju Indukoori
# TOPIC
No of
sessions
6
Participants in foreign exchange market, Structure of forex market in India,
spot and forward markets 2
7
Triangular arbitrage, Nominal Effective Exchange Rate (NEER), Real
Effective Exchange Rate (REER) 2
8
Currency derivatives, Forwards, Futures, Forward rate agreement, option
swaps, 2
9
Foreign Exchange Management Act (FEMA), BOP, BOP Trends in India,
Current account deficit, Capital account convertibility, Tarapore Committee
Report 2
10
Parity Conditions - Purchasing Power Parity (PPP) and interest rate parity,
international fishers effect, unbiased forward rate theory,
2
11
International debt crisis and currency crisis - Asian currency crisis, Greek
debt crisis 2

6. Unit 3
FDI and Multinational Financial Management
Raju Indukoori
# TOPIC
No of
sessions
12 FDI Theories, OLI Paradigm 1
13 Modes of foreign investment 1
14 Evaluation of overseas investment proposal using APV 2
15
International portfolio diversification- rationale, barriers, home
country bias, project financing
1
16 Financial goals of MNC, financial performance measurement 1
17 International cash management 1
18 Multinational capital structure decision, cost of capital 1
19 International trade financing 1

7. Unit 4
International Risk Management
Raju Indukoori
# TOPIC
No of
sessions
20
Types of risk-currency risk - interest rate risk, country risk
assessment–political risk and financial risk
3
21
Currency exposure risk – Transaction, translation and
economic exposure, accounting standard for translation
exposure in India, economic exposure and assessment
3
22
risk management through hedging-natural hedges, hedges
with currency derivatives, hedging contingent exposure,
hedging through invoice currency.
3

8. Unit 5
International Pricing and Tax Environment
Raju Indukoori
# TOPIC
No of
sessions
23
Types of taxes; taxation methods; tax havens, offshore financial
centers, re invoicing centre
2
24
Tax treaties-Double taxation Avoidance agreement, multilateral
tax treaties
2
25
Foreign tax credit, tax neutrality tax equity, taxes and the
location of foreign operations
2
26
Tax implications of dividend remittance by overseas affiliate,
taxes and organizational form–controlled foreign corporation;
Taxation of foreign source income in India
2
27 Transfer pricing (TP) and tax implications 1

9. Student Learning Outcomes
Raju Indukoori
1. At the end of this course students will be able to
2. Understand the role of financial markets in national
and global scenario in mobilizing funds and
managing risk.
3. Evaluate relative cross border investment
opportunities and make sound decisions in various
verticals like capital budgeting, liquidity, funding,
etc.
4. Leverage on the beneficial tax environment for
survival and growth in long term.

10. Book References
1. Ephraim Clark: “International Financial Management”, Cengage Learning.
2010
2. Jeff Madura, International Corporate Finance , Thomson South Western,
11th Edition.
3. Eun C.S., Resnick B.G: “International Financial Management”, Tata
McGraw Hill Education Pvt. New Delhi 2010
4. Sharan V., “International Financial Management”, PHI Learnings New
Delhi, 2012.
5. V.A.Avadhani: “International Financial Management” Himalaya
Publication, 2013
6. P.K.Jain, Surendra S Yadav, Peyrard: International Financial
Mangement”, MacMillon, 2013
Raju Indukoori

11. Expectations from Students
• Leverage from the course ‘ Financial Management’
• High level of interaction with faculty and with team
members in group activities and other teaching
methods
• Scheduled book reading and references on rolling
basis
• Connected to markets and companies on regular
basis
Raju Indukoori

12. Thank You
Raju Indukoori

13. Any Questions
Raju Indukoori