Course Policy International Finance – Sem IX

Mukesh Patel School of Technology Management & Engineering

School of Technology Management and Engineering

Course Policy Document

Course Name - (Code): International Finance - MBAB09006
Program and Semester: MBA Tech/ IX Pre-requisite Course : None

L T P C H
2 0 0 2 3
Academic Year: 2024-25 Credit Details:

Name of Course Faculty: Dr. Alaknanda Lonare

Program: MBA Tech, Mumbai Campus Faculty associated with the course: -
Contact Details: [email protected] 1. Dr. Mahipal Gadhavi (Indore)

Office Hours:
Pre-Course Activity:
Using GenAI, explore the following:
1. Relevance of International finance to predict foreign exchange movements, helping businesses hedge
currency risks effectively.
2. How to improve the efficiency of international payments, reducing transaction costs and enhancing
speed in global trade?
3. Identify global trade policies or geopolitical events on financial markets, enabling better investment
strategies.

Course link:

1. Introduction to the Course

1.1 Importance of the Course
1.1.1 Domain Relevance:
In the globalized economic environment, international transactions are an integral part of the
economic activities. This course explains the concepts, theories and practices of
multinational businesses. It also explains the exchange rate mechanism of foreign currencies,
factors influencing exchange rate fluctuations and the trading mechanism in foreign
exchange markets that affects the cross border transactions of the multinational corporations.
International finance provides a deep understanding of how global financial markets operate.
It helps students learn to manage currency fluctuations, assess risks from geopolitical events,
and navigate the complexities of international trade and investments. With businesses
increasingly operating across borders, knowledge of international finance is essential for
making informed decisions on global expansion, investments, and risk management.
Course Policy International Finance – Sem IX

1.1.2 Industry Relevance:

International finance holds significant industry relevance as it equips professionals with the
ability to navigate global financial markets, manage cross-border transactions, and mitigate
risks associated with currency fluctuations and geopolitical events. For multinational
corporations, financial institutions, and investment firms, expertise in international finance is
crucial for making informed decisions on foreign investments, mergers and acquisitions, and
trade financing. It also plays a key role in managing regulatory compliance across different
countries and optimizing capital allocation in global operations, making it a vital skill in
today's interconnected economy.

1.1.3 Objectives of the Course:

1. Describe the scope of International Financial Systems
2. Interpret and Analyze balance of payments.
3. Explain exchange rate theories and operations in the forex markets.
4. Sources of short run and long run international finance.

Course Outcomes (CO), Mapping with Program Outcomes (PO), and

Program Specific Outcomes (PSO)
1.2 Course Outcomes
CO1: Understanding Evolution of Monetary System.
CO2: Apply concepts of Foreign Exchange Market for a multinational company.
CO3: Analyze the forex market actions in a Global setup.
CO4: Apply project appraisal techniques in International Context.

1.3 Program Outcomes(PO) the course contributed to:

1.3.1 PO-1: An understanding of global practices impacting organizations
1.3.2 PO-2: Critical thinking skills
1.3.3 PO-3: Understanding Business Domains and Integration with Technology
1.3.4 PO-4: Effective communication skills
1.3.5 PO-5: An understanding of ethical business models
1.3.6 O-PO Mapping

PO1 PO2 PO3 PO4 PO5

CO1 1 2
CO2 1 1
CO3 1 1
CO4 1 2
Course Policy International Finance – Sem IX

Mapping Levels: 1- High, 2-Medium, 3-Low

2. Teaching-learning methodology
2.1 Instruction Plan
Assessment
COs
Lecture Teaching Resources and
Topic Blooms Level mapped
No. Method * Evaluation

International Monetary System:

brief History and Evolution, (P. G. Apte,
European Monetary System “International
Discussion, UNDERSTAND
1 Finance”, 8th CO1 MT-1, TEE
Caselets
Edition)

T1 : pp 96-121

Balance of Payments and Numerical

2 Exchange Rates Regimes Problems, Case APPLY T1: pp 74-88 CO2 MT-1, TEE
lets

Exchange Rate Forecasting and

Numerical
Structure of the Foreign APPLY MT-1, Term
3 Problems, Case T1: pp 146-192 CO2
Exchange market Work, TEE
lets

Purchasing Power and Interest

Numerical
Parity, Monetary and Portfolio MT-1, Term
4 Problems, Case APPLY RB1: pp 259-277 CO2
Model of Exchange Rate Work, TEE
lets
determination

Exchange Rate Risk

Management: Internal Numerical MT-1, Term
5 Techniques - Managing Problems, Case ANALYSE RB1: pp 325-354
CO3 Work, TEE
Transaction, Translation and lets
Operational risks

Exchange Rate Risk

Management: External
Techniques - Managing
Numerical MT-2, Term
Transaction, Translation and
6 Problems, Case ANALYSE T1: pp 453-488
Operational risks using CO3 Work, TEE
lets
Forwards, Futures, Options,
Swaps, Money market
operations

Managing Country / Political

Risk Discussion, MT-2, Term
7 ANALYSE T1: pp 442-452
Caselets CO3 Work, TEE

International Equity Investment:

Equity Financing in
International Markets, American Discussion,
8 T1: pp 606-640 Term Work
Depository Receipts, European Caselets APPLY CO4
Depository Receipts and Global
Depository Receipts

Long term borrowing in the

Global Capital Markets, Major
Discussion, Term Work
9 Market Segments, The APPLY T1: pp 641-677
Caselets CO4
International Financing
Decisions, Eurobonds
Course Policy International Finance – Sem IX

International Project Appraisal:

Numerical MT-2, Term
A review of NPV approach,
10 Problems, Case APPLY T1: pp 678-685
Project appraisal in International CO4 Work, TEE
lets
context

3. Assessment and Evaluation Scheme

Internal Continuous Assessment (ICA) (50 Marks)

Class Tests (20 Marks) Term Work-Group Project (30 Marks)

Assessment Class Test-1 Class Test-2 Group Project Viva/Quiz/ Class

Component participation
Marks 10 10 25 5

Timelines (7th Oct 2024-12th (18th Nov, 2024- 10th November 2024 15th November 2024
Oct 2024) 23th Nov 2024)

Project Description: Each group (of 5 or 6 students) will select an industry. Each group will be
assigned a contemporary topic related to the international forex markets and students will be
expected to use relevant data and come with proper analysis and interpretations. For Example:
Topic - Analysis of USD-INR rates and forecasting.

Students may download monthly exchange rate data from RBI/Money control/ET money website
for at least 5 years and forecast the exchange rate considering present market situation. They may
use statistical techniques for the same. Similar other relevant topics covering the depth of the
subject could be allotted to the students. Assessment will be based on the Project report

3.1 Internal Continuous Assessment (ICA) – 50 marks

Class Test-1 conducted in the 4th week. It will be for 10 marks (30 Minutes-duration).
Class Test-2 conducted in the 9 th week. It will be for 10 marks (30 Minutes-
duration). Term Work will have a weightage of 30 marks for ICA.
Report submission is required on time. Penalty will be levied for late submissions.
3.2 Term End Examination (TEE) – (50 Marks)
TEE conducted at the end of the semester will be for 50 marks (2-hour duration).
There will be 7 questions (each question will be 10 marks). Q1 will be compulsory
and any 4 from the remaining to be solved.
3.3 Course Passing Criteria
3.3.1 ICA (50 marks) – No minimum marks
3.3.2 TEE (50 Marks) – 40% required for passing
3.3.3 (ICA + TEE) (100 marks) - 40% required for passing
Course Policy International Finance – Sem IX

3.4 Assessments and Mapping to Course Outcomes

Internal Continuous Assessment (ICA) Term End

Examination
(TEE)
Course MT-1 MT-2 Term Work TEE
Outcomes
CO-1 Y Y
CO-2 Y Y Y
CO-3 Y Y Y
CO-4 Y Y

4. Tutorial Plan
This course does not have any tutorial.

5. Course Material
I. Apte, P.G. International Financial Management, 8/e, New Delhi, Mc -Graw Hill,
2020.

II. Reference Books

1. Madura J. (2020). International Financial Management, 14/e, Cengage Learning.

2. Cheol S. E. (2020). International Financial Management, 7/e, Mc -Graw Hill.

3. Sharan V. (2010). International Financial Management, 6/e, PHI.

4. Bhalla V.K. (2014) International Financial Management(Text and Cases), 1/e, S.

Chand Publishing

References and relevant material will be uploaded on MS-Teams by faculty every week.

6. GenAI Usage
6.1 Pre-class Activity:
Reading about the relevance of each topic for discussion in the class.
6.2 In-Class Activity:
Use GenAI to find examples of transactions for a business to prepare final accounts.
6.3 Assignments
GenAI is not to be used for doing Assignments given by faculty.
Course Policy International Finance – Sem IX

6.4 Challenging Problems

GenAI is permitted to be used. Students need to cite the references used.

7. Academic Integrity Statement

Original work expected from students for all of the assigned assessment work. Copying in
any form not acceptable and will invite strict disciplinary action. Evaluation of
corresponding component will be affected proportionately in such cases. Plagiarism
detection software will be used to check plagiarism wherever applicable. Academic integrity
is expected from students in all components of course assessment.

* - Only Teaching Method in the Instruction Plan for the course may vary
for different faculty teaching the course, rest of the Course Policy
Document will not change.