Advance International Finance

Paper Code: 
ABF 202
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To acquaint students with the theory of Foreign exchange market and transactions.

Unit I: 
Foreign Exchange Markets

Meaning, Functions , Factors influencing
exchange rates.Major Participants: Spot, Forward Exchange , Future, Option, Arbitrage

Unit II: 
Exchange Control & Balance of payment

Exchange Control- Meaning, Features, Objectives, Methods, Merits & Demerits, Exchange control in India.

Balance of payment:
Meaning, Components, BOP v/s BOT, Disequilibrium in BOP, Rectification of disequilibrium.

Unit III: 
Determination of exchange rates

Equilibrium Rate of exchange-Mint Parity theory-PPP theory and Balance of Payment theory. Causes of fluctuations in Exchange rates. Fixed and Flexible Exchange Rates.

Unit IV: 
International Banking

Meaning, Features, Types of International Banking offices and Offshore Banking.

Unit V: 
Foreign Aid to India & WTO

Foreign Aid to India- Role, Impact of Foreign aid on India’s Economic development and Problems of Foreign Aid.

WTO- Introduction, Objectives, Functions and India & WTO.

Essential Readings: 

• Avadhani,V.A,” International Finance, Theory and Practice”, Himalaya Publishing Company, New Delhi.
• S.K. Mathur, “ International Trade and Finance”, Shivam Book House, Jaipur.
• Cherunilam Francis “International Economics”, Tata McGraw-Hill Publishing Company Limited, new Delhi
• Cherunilam Francis “International Business”, Tata McGraw-Hill Publishing Company Limited, new Delhi
• Maurice, Levi, “ International Finance”, McGraw Hill, Int. Ed. New York.

References: 

• Walter, Ingo: Handbook of International Business, John Wiley and Sons; New York.
• Wood, D. and J Byrne: International Business Finance, Macmillan, New York.
• Sodersten B, “International Economics”, Macmillan, London.
• Dominick, “ International Economics”, Macmillan Publication Company, New York.
• Mithari D. M. Introduction to International Economics (Latest)- Himalaya Publishing House,
Mumbai
• Seth M.L.,” Money, Banking, international Trade and Public finance”, Lakshmi Narain
Agarwal Educational Publisher, Arga.