FOREIGN EXCHANGE MANAGEMENT

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

Course Outcomes

Learning and teaching strategies

Assessment Strategies

 
 

CO 166: Equip the students with proper knowledge about Foreign exchange

CO 167: Understand the operations  of foreign exchange market.

CO 168: Examine the theories and determination of foreign exchange rates.

CO 169: Discuss general factors of exchange rate fluctuations.

CO 170: Explain nature, functions and participants of foreign exchange market

CO 171: 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: 
Unit-1

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: 
Unit-II

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: 
Unit-III

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: 
Unit-IV

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: 
Unit-V

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)

*Case studies related to entire topics are to be taught.

 

Essential Readings: 
  • C. Jeevanandam ,“Foreign exchange and risk management”,Sultan Chand
  • FrancisCherunilam,”International trade and export management“,Himalaya publication.
  • OP Agarwal, “Foreign trade and foreign exchange” Himalaya Publication House, Mumbai
  • Avadhani,V.A,”International Finance, Theory and Practice” Himalya Publishing company,NewDelhi.
  • S.K.Mathur,”InternationalTradeandFinance”ShivamBookHouse,Jaipur

 

References: 

Suggested Readings:

·       Cherunilam Francis,” International Business”,Tata Mc Graw-Hill Publishing Co.Limited New Delhi.

·       WoodandJByrne: International Businessfinance, Macmillan ,New York.

·       Walter, Ingo:HandbookofInternationalBusiness ,John Wileyandsons, New York.

·       Mithani D.M., ”Introduction to International Economics” Himalaya publishing House ,Mumbai.

E Resources:

·       https://www.expresslibrary.mheducation.com/bookshelf

·       Elibrary.in.pearson.com

·       https://www.yourarticlelibrary.com/international-business

·       https://www.investopedia.com/terms/m/internationalmarkets.asp

·       https://www.slideshare.net/

 

E Journals:

·       http:// sagepub.com

·       http://publishingindia.com

http://www.oiirj.org

Academic Year: