International Financial Management – An overview – Importance – Nature and Scope – International flow of Funds – Balance of payments – International Monetary System

Markets for Foreign Exchange – Foreign Exchange market – Feature – Spot and Forward market – Exchange Rate Mechanism – Exchange rate determination in the Spot and Forward markets – Factors Influencing Exchange Rate – Market for currency futures and currency options – Hedging with currency future and options.

International Investment decision – Foreign Direct Investment – International Capital Budgeting – International Portfolio Investment – meaning – Benefits – Problem of International Investment.

International Financial decisions – Overview of the International Financial Market – Channels for International flow of funds – Role and functions of Multilateral Development banks – International banking – Functions – Credit Creation – Control of International Banks.

International Financial Market Instruments – Short-term and Medium-term instruments – Management of short-term funds – Management of Receivables and Inventory – Factors behind the Debt Crisis.