UNIT I:
The international Financial Environment. The growth of multinational enterprises .The process of expanding abroad. Finacial management in a multinational setting.

UNIT II:
International financial System: A brief historical review of the international financial system. Fundamental Parity Conditions. The purchasing power parity principal. The interest parity.

UNIT III:
The Foreign Exchange Market :the spot and forward markets. Currency futures and options market. Determination of exchange rates: Balance of payments accounting. Supply and demand approach. Modern theories of exchange rates. Alternative exchange rate regimes. Foreign Exchange Risk Exposure. Measurement and Management :Accounting exposure and Economic Exposure. Hedging Risk and exposure.

UNIT IV:
International Financing: (A) portfolio Investemnt; Captial Budgeting for direct foreign investment foreign vs. domestic investments; Difficulties in evaluation foreign investment; Cash flows and discount rates for foreign investments. (B) Developments in international capital markets; Feature and Growth of major international markets; Developments in Euro Currency Market and emerging Asian Financial Markets; Raising of funds in international capital markets problems and prospectsl;Instruments of financing –Commercial Paper. Medium term Notes, Floating Rates Notes, Euro Issues – ADRs, FCCDs and syndicated loans; Government and Development bank lending. Cash Management system Centralized vs. Decentralized systems, Impact of Transaction costs. Political risk, Liquitdity preference and taxes on cash management. Designing a global functioning strategy. Establishing a worldwide capital structure.

UNIT V:
International Trade and banking system: The letter of credit. Alternative payment and guaranteeing procedures, short term financing of international trade. Forfeiting – a form of medium term finance. Financing by government export agencies.
Suggested reading :
1.Alan C.Shapiro: Multinational financial Management ,John Wiley 2001.
2.P.G.Apte:International Financial Management Tata McGrawHill – 1995.
3.Adrian Buckley: Multinational Finance, PHI – 1998.
4.I.H. Giddy: Global Financial Markets, AITBS Publishers & Distributors – 1997
5.Henning, Pigot and Scott: International Financial Management, McGrawHill – 1998.