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Sathyabama Institute of Science and Technology LL.B - LL.B SAL1653 International Monetary Fund Syllabus


Sathyabama Institute of Science and Technology

SAL1653 INTERNATIONAL MONETARY FUND

UNIT 1 – EVOLUTION OF MONETARY SYSTEM 15Hrs.
Bimetallism (before 1875) - Classical Gold Standard (1873-1914) - inter –war period (1915-1944) - Bretton woods
System (1945-1972) - Flexible Exchange Rate arrangements - European Monetary System - Euro and the European Monetary
Union - Currency Crisis: The Mexican Peso Crisis - The Asian Currency Crisis - The Argentine peso Crisis - Fixed versus
Flexible Exchange rate regimes.

UNIT 2 – BALANCE OF PAYMENTS AND INTERNATIONAL LINKAGES 18Hrs.
Balance of payments and its components - BOP Accounting - BOP trends in major countries coping with current
account deficit - Capital Account Convertibility - pros and cons

UNIT 3 – INTERNATIONAL FINANCIAL MARKETS AND INSTRUMENTS 18Hrs.
International money market - Euro Currency Market, Euro credits, Forward Rate Agreements, Euro Notes -
International Bond market - Credit Rating and indices of international bond market - Types of instruments - International equity
markets: Market structure, trading in international equities, cross listing of equities, GDRs, ADRs, IDRs, Global registered
shares, International equity market benchmark, factors affecting in international equity market.

UNIT 4 – FOREIGN EXCHANGE MARKETS 17Hrs.
Functions and structure of forex market - Forex market participants, foreign exchange spot rates, forward, futures,
options and swap market; Foreign Exchange rate determinants - International parity relationship, Interest rate parity,
Purchasing power parity and International Fisher Effect.

UNIT – 5 FOREIGN EXCHANGE MANAGEMENT 17Hrs.
Management of Transaction exposure, money market hedge, hedging foreign currency payable, cross hedging
minor currency exposure, hedging through invoice currencies, Hedging via lead and lag, Exposure netting; Management of
economic exposure; measurement of economic exposures, Determinants of economic exposure: Management of translation
exposure –translation exposure methods, management of translation exposure, balance sheet hedge and derivatives hedge.
Max.85 Hrs.

COURSE OUTCOME:
On completion of the course the student will be able to
CO1: Student will develop an introductory understanding of a broad range of topics involving transnational business that arise
in making, regulating and breaking international business relationships.
CO2: Student will have understanding over transnational business settings, including transnational licensing agreements and
development agreements.
CO3: This Course will give a brief understanding over Money Market, Currency Aspects and so on.
CO4: Helps the Student to have a detailed understanding over Foreign Exchange Management.
CO5: Will enhance Economic Exposure to Student at all levels.
CO6: This Course will equip the Student with the required Professional Skills.

TEXT/ REFERENCE BOOKS
1. Apte, P.G: International Financial Management, Tata McGraw Hill, New Delhi 5th Ed. 2009.
2. Shaprio, Alan. C: Multinational Financial Management, Prentice Hall, New Delhi. 2006,8th ed.
3. Cheol S. Eurn, Bruce G. Resnick, International Finance Management, Mc Graw Hill, 5th ed, 2009.
4. Buckley, Adrian: Multinational Finance, Prentice Hall, New Delhi, 5th ed.
5. Thomas J. P’brien, International Finance – corporate decision in global markets, 2nd ed.

END SEMESTER EXAMINATION QUESTION PAPER PATTERN
Max. Marks:100 Exam Duration: 3 Hrs.
PART A: 6 Questions to be answered out of 8 questions and each question carries 5 Marks 30 Marks
PART B: 4 questions to be answered out of 8 questions (Internal Choice) and each question carries 10 Marks 40 Marks
PART C: 2 Questions/Problems to be answered out of 4 questions/problems and each carries 15 marks 30 Marks