INTERNATIONAL TRADE AND FINANCE

Paper Code: 
SBFS 301
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the student to understand international trade theories, commercial policy instruments, regional economic cooperation, exchange rates, capital movements, regulatory frameworks, and international negotiations.

Course Outcomes: 

 

 

Course

 

 

Learning outcome (at course level)

Learning  and Teaching Strategies

Assessment Strategies

Course Code

 

 

Course Title

SBFS301

con

International Trade And Finance

 (Theory)

 
  1. Critically evaluate theories of International trade and compare tariff and non-tariff barriers in trade
  2. Appraise the role and function of IMF, World Bank, WTO, and various regional economic Corporations.
  3. Evaluate the Exchange rate regime and analyze the balance of Payment
  4.  Appraise the role of various regulatory frameworks in facilitating International Trade
  5.  Classify the modes of Foreign Investment 
  6. Contribute effectively in course-specific interaction.

Approach in teaching: Blended Learning, Collaborative approach, Interactive Lectures, Discussion, Group Projects, PowerPoint presentation.

   

Learning activities for the students:

Self-learning assignments, Seminar presentations, Case Study Analysis, Brainstorming activities

 

Class tests, CA Test,

Semester end examinations, Quiz,

Evaluation of student Presentations,

 

Evaluation of Individual and group projects,

 

Assessment of Project Reports and viva voce.

 

12.00
Unit I: 
Introduction and Theories of International Trade

Introduction and Theories of International Trade
• Meaning and Role of International Trade
• Classical Theory, Hecksher-Ohlin Theory and New Trade Theory
Commercial Policy Instruments
• Tariff and non-tariff measures -Types.
• Factors contributing to growth in International Finance
International Negotiations
• GATT – An overview, WTO – Objectives, principles, organizational structure and functioning, WTO and India.

12.00
Unit II: 
Regional Economic Co-operation

Regional Economic Co-operation
• Regional trade blocs, Meaning and relevance, Forms of regional groupings; Integration efforts among countries in Europe, North America and Asia (NAFTA, EU , ASEAN and SAARC) .
International Financial Environment
• International Financial System and Institutions (IMF and World Bank – Objectives and Functions, achievements and relations with India )

12.00
Unit III: 
Exchange Rate and Its Economic Effects

Exchange Rate and Its Economic Effects
• Meaning and Concept, Exchange rate regime, Nominal Versus Real Exchange rates. Foreign Exchange Market, Determination of Nominal Exchange rate, changes in exchange rates.
• Theories of Exchange Rate determination- Purchasing Power Parity Theory and Balance of Payment Theory
• Devaluation vs. depreciation,
• Impact of Exchange rate fluctuations on the Domestic Economy.
Balance of Payment
• Concept, Components, Equilibrium in BOP, Measures to correct disequilibrium.

12.00
Unit IV: 
.International Capital Movement

International Capital Movement
• Types of Foreign Capital, FDI and FPI, Reasons for FDI, Modes of FDI, Benefits of FDI, Potential Problems associated with FDI, FDI inflow and outflow of India
Organization Structure for International Business Operations
• International business negotiations, Issues in International Business and Modes of International Business

12.00
Unit V: 
Regulatory Framework

Regulatory Framework
• Current Exim Policy, Guidelines by Directorate General of Foreign Trade (DGFT), Important guidelines of Foreign Exchange Management Act (FEMA)
• Role of International Chamber of Commerce (ICC)
• Summary of Important Guidelines by Foreign Exchange Dealers Association of India (FEDAI)

Essential Readings: 

Essential Readings:
• Avadhani,V.A,” International Finance, Theory and Practice”, Himalaya Publishing Company, New Delhi.
• International Trade Finance, Indian Institute of Banking and Finance Taxmann Publications, 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
• Mithani D. M. Introduction to International Economics (Latest)- Himalaya Publishing House, Mumbai

References: 

Suggested Readings:
1. Maurice, Levi, “ International Finance”, McGraw Hill, Int. Ed. New York.
2. Walter, Ingo: Handbook of International Business, John Wiley and Sons; New York.
3. Wood, D. and J Byrne: International Business Finance, Macmillan, New York.
4. Sodersten B, “International Economics”, Macmillan, London.
5. Dominick, “ International Economics”, Macmillan Publication Company, New York.

E- Resources:
1. https://www.indiabudget.gov.in/economicsurvey/ (Economic survey, various issues)
2. https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Report%20on%20Cu... (RBI Report on Currency & Finance, various issues)
3. Websites: https://www.rbi.org.in/ (RBI), https://www.imf.org/en/Home (IMF), https://www.worldbank.org/en/home (WORLD BANK), https://www.wto.org/ (WTO)
4. https://www.wto.org/english/res_e/reser_e/annual_report_e.htm (WTO Annual report, various reports)
5. International Journal of Financial Management
6. Indian Journal of Finance
7. Journal of Banking, Information Technology and Management
8. World Affairs- The Journal of International Issues
9. Foreign Trade Review

Academic Year: 
2023-2024
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