Syllabus Of IFM-

1. Introduction to International Finance:

  • Understanding the scope and importance of international finance.
  • Key differences between domestic and international finance.

2. Foreign Exchange Markets:

  • Exchange rate systems (fixed vs. floating).
  • Exchange rate quotations and calculations.
  • Factors influencing exchange rates.
  • Exchange rate risk and management.

3. International Parity Conditions:

  • Purchasing Power Parity (PPP).
  • Interest Rate Parity (IRP).
  • Fisher Effect.

4. Balance of Payments:

  • Components of the balance of payments.
  • Balance of payments accounting.
  • Causes and consequences of balance of payments imbalances.

5. International Monetary System:

  • Historical development of the international monetary system.
  • The role of international organizations (e.g., IMF, World Bank).

6. International Capital Budgeting:

  • Methods for assessing foreign investment opportunities.
  • Risk analysis and capital budgeting in an international context.

7. International Trade Finance:

  • Methods of payment in international trade (e.g., letters of credit, open account).
  • Trade finance instruments (e.g., export financing, import financing).

8. Foreign Direct Investment (FDI):

  • Motives for FDI.
  • FDI strategies and entry modes.
  • Host country policies and FDI.

9. Multinational Capital Structure:

  • Capital structure decisions for multinational corporations.
  • Hedging techniques for managing financial risk.

10. International Portfolio Diversification:

– Benefits of international portfolio diversification.

– Portfolio risk and return in a global context.

11. International Financial Institutions:

– Roles and functions of international financial institutions.

– The World Trade Organization (WTO).

12. Emerging Markets and Global Investment:

– Investing in emerging markets.

– Risks and opportunities in emerging market investments.

13. Corporate Governance and Ethical Issues:

– Corporate governance practices worldwide.

– Ethical considerations in international finance.