Modules Of International Financial Management

The financial system, consisting of financial institutions, financial instruments and financial markets, provides and effective payments and credit system and thereby facilitates channeling of funds from the savers to the investors in the economy. Just as domestic financial markets have two segments short-term money market and capital market- international financial markets do also have these two segments. In the short-term money markets funds for short periods are loaned and borrowed. The growth in international business is evident in the form of highly inflated size of international trade.  The financial involvement of the trade’s exporters and importers and the quantum of the cross transaction have surged signically.  This needs proper management of international flow of funds for which the study of international finance has become indispensable.  This content has been designed in such a manner so as to make understand the students with international finance practices being followed at the global level i.e. to look beyond the domestic boundaries, which is, indeed, the need of the hour.  International monetary system is about the types of foreign exchange operations and exposures along with the hedging techniques, currency risk analysis, euro banking, international financial institutions, structure of balance of payments and finally trading at the international stock exchange.  Basic modules of international finance which covers the following areas, financing techniques, planning & budgeting, different approaches to investing during uncertainty, components and applications of valuation criteria, exchange rate determination, monetary and fiscal policy on an open economy, balance of payments crisis and an introduction to derivative instruments.  The focus of this module is the financing and investment decisions made by the managers of the companies in pursuit of corporate goals.  It examines how managers can obtain the greater possible return on investment for the smallest amount of risk.  This will acquire the understanding of theories, models, tools and techniques to assist in making financial decisions to achieve corporate goals.   These will include identification of the cost of capital, rate of return, dividend distribution, investment appraisal, portfolio theory, foreign exchange and interest rate issues.