Foreign Exchange Management

Paper Code: 
MFM 423
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives-

 

  • Paper has been designed such that it acquaints the students with the recent trends in the foreign exchange market.
  • To introduce the students about the methods of payment in international trading

Course Outcomes(COs):

 

Course

Learning outcomes (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MFM 423

Foreign Exchange Management

CO160: Equip the students with proper knowledge about Foreign exchange

 

CO 161: Understand the operation s  of foreign exchange market.

 

CO 162: Examine the theories

and determination of foreign

exchange rates.

CO 163: Discuss general factors of  exchange rate fluctuations.

CO 164: Explain nature , functions and participants of foreign exchange market

 

CO 165: Explain the concept of Balance of Payment.

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Quiz.

 

 

Learning activities for the students:

Self learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

12.00
Unit I: 
Foreign Exchange market

Foreign Exchange market: Meaning, Features, functions, participants in foreign exchange market methods of affecting international payments, dealings on the Foreign Exchange Market- Spot and Forward Exchanges, Forward Exchange Rates, Futures, Options, Swap Operation.

12.00
Unit II: 
Foreign Exchange Rate & Theories of exchange Rate

Foreign Exchange Rate- Concept, factors determining spot exchange rates, fluctuations in the rate of exchange, Types of Exchange Rate: Fixed & Flexible exchange rate.

Theories of exchange Rate: Demand and supply theory of exchange rate, PPP Theory, Balance of Payment theory

12.00
Unit III: 
Exchange Control

Exchange Control:

Meaning, features, Objectives, Methods-Unilateral methods & Bilateral methods, Merits and demerits, Exchange Control in India, Exchange Control Authority- Authorized dealers, Foreign Exchange Dealers Association of India(FEDAI),Foreign Exchange Reserves in India.

12.00
Unit IV: 
Balance of Payment

Balance of Payment: Concept, Structure, Components of Balance of Payment, Difference between Balance of trade and Balance of Payment, Equilibrium in BOP ,Disequilibrium in BOP, Types of Disequilibrium, Measures to correct disequilibrium.

12.00
Unit V: 
Methods of Payment

Methods of Payment: Letter of Credit–meaning, mechanism, evaluation of LOC, Types of LOC. Bills of Exchange-meaning, Types of bills, noting and protest, stamp duty.

Introduction to International Monetary fund (IMF)

Essential Readings: 

BooksRecommended:

  • C.Jeevanandam ,“Foreignexchangeandriskmanagement”,SultanChand
  • FrancisCherunilam,”Internationaltradeandexportmanagement“,Himalayapublication.
  • OP Agarwal, “Foreign trade and foreign exchange” Himalaya Publication House,Mumbai
  • Avadhani,V.A,”International Finance, Theory and Practice”Himalya Publishingcompany,NewDelhi.
  • S.K.Mathur,”InternationalTradeandFinance”ShivamBookHouse,Jaipur.
  • Cherunilam Francis,” International Business”,Tata Mc Graw-Hill Publishing Co.LimitedNew Delhi.
  • WoodandJByrne: InternationalBusinessfinance,Macmillan,NewYork.
  • Walter,Ingo:HandbookofInternationalBusiness ,JohnWileyandsons,NewYork.
  • Mithani D.M., ”Introduction to International Economics” Himalaya publishing House,Mumbai.

 

Academic Year: 
2021-2022
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