Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials

Course No COM618

Cours Title INTERNATIONAL FINANCIAL MANAGEMENT

Course Planner 14761 :: Gurpreet Singh

Lectures Tutorial Practical 4 1

Credits 0 5

Text Book:

1 Shapiro Allan C, Multinational Financial Management, Wiley Publication, New Delhi.

Approved for Spring Session 2011-12

Other Specific Book: 2 Eun/Resnick, International Financial Management, Tata Mc Graw Hill Publishing Company Limited, New Delhi 3 David K. Eiteman, Arthur I. Stonehill &Michael H. Moffett, Multinational Business Finance, 12/E, Prentice Hall Delhi 4 Jeff Madura, International Financial Management, Latet Edition, Cangage Publication 5 Apte, P.G. International Financial Management, Tata Mc Graw Hill Publishing Company Limited, New Delhi 6 Srivastava & Mishra, Financial Management, Oxford Press New delhi

Other Reading

Approved for Spring Session 2011-12

Sr No

Jouranls atricles as compulsary readings (specific articles, Complete reference) 7 Absolute and comparative advantage-http://web.ebscohost.com/ehost/pdfviewer?sid=7c5c4070-f35d-4b67-846d3dda8e6%40sessionmgr15&vid=41&hid=7 8 Calculate forward given spot rate- http://finance wharton upenn.edu/Chapter_05_app.pdf 9 Calculate the cross rate with bid ask speard- http://www.mysmp.com/video/forex/crossratebid-ask-speard.html 10 Interest rate parity-http://web.ebscohost.com/ehost/pdfviewer?sid=7c5c4070-f35d-4b67-846a-d3dda3da8e6 11 Exchange rate and globalization--http://web.ebscohost.com/ehost/pdfviewer?sid=7c5c4070 12 Currency Swap-http://cb.hbsp.harvard.edu/cb/web/he/product_view.seam? 13 Interest rate swap- http://cb.hbsp.harvard.edu/cb/web/he/product_view.seam? 14 PPP-http://web.ebscohost.com/ehost/pdfviewer 15 Why a future price differs from forward price-http://cb.hbsp.harvard.edu/cb/web/he/product_view.seam?R=UV 16 Foreign exchange markets and transctions 17 How the international monetry system creates the crises-http://cb.hbsp.harvard.edu/cb/web/he/product_view.seam?R=910M08-PDF-ENG&T 18 Note on foreign currency swap-http://cb.hbsp.harvard.edu/cb/web 19 Exchange rate risk and interest rate - http://web .ebscohost.com/ehost/pdfviewer 20 Hedging Currency Risk at AIFS- Https://cb. hhsp.harvard.edu/cb/web/he/product_view.seam? 21 Bigbee Difficulty of measuring Currency Exposure- http://cb.hbsp.harvard.edu/cb/web/he/product_view 22 A global power company with strong FX risk exposure- http://cb.hbsp.harvard.edu/cb/web/he/product_view.seam ENG&T 23 http://aib.msu.edu/awards/23_1_92_1.pdf

Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 24 www.oecd.org 25 www.economist.com 26 www.moodys.com 27 www.standardandpoors.com Salient Features Contains data on PPP exchange rates for the OECD countries going back to 1970. The Economist contains stories on economic and political situations of countries, The web site contains country risk ratings and analyses. The web site contains country risk ratings and analyses.

Approved for Spring Session 2011-12

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Textbook/other reference Pedagogical tool Demonstration/case study/images/anmation ctc. planned

Part 1
Week 1 Lecture 1 International Finance an Overview, Major Dimensions of International Finance. Goals for International Financial Management. Globlization of world economy, Privatizion, Development of Multinational Corporations. International monetary system, its journey from Bimetallism before 1875 to Flexible exchange rate regime since 1973 ->Reference :1,Ch-1 ->Reference :2,Ch-1 Pg 5-7 ->Reference :1,Ch-1 ->Reference :2,Ch-1 Pg 7-15 ->Reference :1,Ch-1 Pg Student will read in 87-106 detail the emergence of ->Reference :17,Article IMF and EOU by themselves. A logical discussion on the need of IMF and EOU will be initiated by the instructor in the first tutorial. So as to make students understand the functions of IMF & EOU, there need as an organization, Effect of these two organizations on the FOREX market. ->Reference :1,Ch-1 Pg 87-106 ->Reference :1,Ch-1 -7 Working of forex market ->Reference :16,Article along with quote in forex market will be demonstrated on oecd.com in the class itself. This will help in understanding exchange rate quotes and bid ask spread. Spot forex Approved for Spring Session 2011-12

Lecture 2

Lecture 3

Lecture 4

Reasons behind shift from one exchange rate regime to other exchange rate regime The Market for Foreign Exchange: Functions & Structure of the FOREX market, Spot Market, Spot Rate quotations, Forward Rate Quotations, Cross Exchange Rate quotations, Bid ask Spread. Spot forex market microstructure.

Week 2

Lecture 5

Details of homework and case studies

Homework No. Objective Topic of the Homework Nature of homework (group/individuals/field work Group Evaluation Mode Allottment / submission Week 2 / 12

Case study 1

To develop Different cases will be assigned to students in a group of three analytical as well as students. They will be required to present the case analytically. the communication Role of each student will be defined by the instructor on the spot. skills They will be evaluated on the basis of four perameters. 1. Presentation of case 2. Question handling 3. Write up 4. Number of logical questions asked from other groups. Though it is a group activity but except write up mars will be assigned to each individual for his own performance. To let students know how interest rate changes can effect their finances Interest rate parity, purchasing power parity Interest rate parity, Purchasing power parity 10 marks will be there for assignment and 10 marks for test. 1. Student not giving the test but submitting the assignment will get marks only for assignment. That too on the basis of viva. Only submission of assignment will not entitle him for the award of marks. 2. Student not giving the assignment but taking the test will get marks only for the test. 3. Students submitting the assignment as well as taking the test will be evaluated on both perameters. But marks of assignment will depend on his performance in the test.

They will be evaluated on the basis of four perameters. 1. Presentation of case 2. Question handling 3. Write up 4. Number of logical questions asked from other groups. 10 marks will be there for assignment and 10 marks for test.

Test 1

Individual

3/6

Quiz 1

To develop It should contain the syllabus till 10 th week. analytical skills as 20 marks quiz to be taken which should have atleast 30 questions well as to make and it should be for 45 min. students understand how to reduce risk.

Individual

20 marks quiz to be taken which should have atleast 30 questions and it should be for 45 min.

10 / 11

Approved for Spring Session 2011-12

Scheme for CA:out of 100*

Component Quiz,Test,Case study Frequency Out Of 2 Total :Each Marks Total Marks 3 10 10 20 20

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc) Discussion Problem solving Problem solving Problem solving Case analysis Test Case analysis

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7

Discusion on role of IMF and EOU their need as an organisation Interest rate parity Purchasing power parity Purchasing power parity Determination of exchange rates Test Risk in internalization

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 Tutorial 12 Tutorial 13 Management of transaction exposure Management of Transaction Exposure Management of operating Exposure Case based presentations Case based presentations Doubt Clearing Session Problem solving Case analysis Case analysis Case analysis Case analysis Doubt Clearing

Approved for Spring Session 2011-12