International Trade and Finance (Theory)

Paper Code: 
24CFSG313
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The students will be enabled 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

 

24CFSG 313

 

International Trade and Finance

(Theory)

CO85: Evaluate theories of International trade and compare tariff and non-tariff barriers in trade

CO86: Appraise the role and function of IMF, World Bank,  and various regional economic Corporations.

CO87: Evaluate the Exchange rate regime, theories of exchange rates and analyse balance of Payment

CO88: Classify the modes of Foreign Investment 

CO89: Appraise the role of various regulatory framework in facilitating International Trade

CO90: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, and PowerPoint presentations.    

 Learning activities for the students: Self-learning assignments, Seminar presentation.

CA test, semester-end examinations, Quiz, Assignments, and Presentations.

 

12.00
Unit I: 
International Trade and Commercial Policy

• Introduction and Theories of International Trade: Meaning and Role of International Trade
• Basic concept of Classical Theory, Hecksher-Ohlin Theory and New Trade Theory
• Commercial Policy Instruments: Tariff and non-tariff measures -Types.

12.00
Unit II: 
Regional Economic Cooperation and International Financial Environment

• 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.

12.00
Unit III: 
Exchange Rate and Balance of Payment

• 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 and International Business Operation
  •   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
  • Organisation Structure for International Business Operations
  • International business negotiations, Issues in International Business and Modes of International    Business

 

 

12.00
Unit V: 
Regulatory Framework and International Negotiations

• 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)
• International Negotiations : GATT – An overview, WTO – Objectives and Functions.

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:

• Maurice, Levi, “ International Finance”, McGraw Hill, Int. Ed. New York.
• 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.

E- Content:
• https://www.indiabudget.gov.in/economicsurvey/ (Economic survey, various issues)
• https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Report%20on%20Cu... (RBI Report on Currency & Finance, various issues)
• 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)
• https://www.wto.org/english/res_e/reser_e/annual_report_e.htm (WTO Annual report, various reports)

Reference Journals:

• International Journal of Financial Management
• Indian Journal of Finance
• Journal of Banking, Information Technology and Management
• World Affairs- The Journal of International Issues
Foreign Trade Review

Academic Year: 
2024-2025
  • Printer-friendly version
  • PDF version