INTERNATIONAL FINANCIAL MANAGEMENT

Meaning, Objective, Functions, Relationship with domestic financial management
International Monetary System: Alternative Exchange Rate Systems, A brief history of International Monetary Systems
International Flow of Funds: BoP of India, Domestic Savings, Investments and Capital account, Link between Capital and Current account, Coping with the current account deficit.

Forward Contracts, Currency Futures – Contract Specifications, Advantages & disadvantages of futures contract, Currency Options- American & European options, In the money, at the money and Out of the Money options. Basic option strategies- Long call, short call, long put and short put, Reading Futures & Option Prices in the exchange market, Interest Rate and currency swaps- Meaning, Cost savings with swaps, Swap structure.

ADRs, GDRs, Types of international bonds, Short and medium term instruments-Euro notes, Euro Commercial papers, medium term Euro notes, concept of LIBOR and LIBID, Link between Euromarkets and their domestic counterparts.
Cost of Capital for Foreign Investments: Cost of equity capital, Debt capital and Weighted average cost of capital for foreign projects

Types of foreign private investments- Foreign Direct Investment and Foreign Portfolio Investments, significance of foreign investments, factors affecting international investment, Limitations and dangers of foreign capital, Capital Budgeting for Multinational Enterprises: Net present value, Incremental cash flows, Cannibalization, Sales creation, Opportunity Cost, Transfer Pricing

Financing Foreign Trade, International cash management, Accounts Receivables management, Inventory Management, Short term Financing