Course Objectives-
1. Paper has been designed such that it acquaints the students with the recent trends in the foreign exchange market.
2. To introduce the students about the methods of payment in international trading
Course Outcomes (COs):
Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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CO 141: Understand the operation of foreign exchange market. CO 142: Understand the theories and determination of foreign exchange rates. CO 143: To introduce the students about the methods of quotations in exchange rate transaction. CO 144: To introduce the students about the methods of payment in international trading.
CO 145: To introduce the students with the concept of Balance of payment.
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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.
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
Meaning, Features, functions, participants in foreign exchange market methods of affecting international payments, dealings on the Foriegn Exchange Market- Spot and Forward Exchanges, Forward Exchange Rates, Futures, Options, Swap Operation.
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.
Meaning, features, Objectives, Methods- Unilateral methods & Bilateral methods, Merits and demerits, Exchange Control in India, Exchange Control Authority- Authorised dealers, Foreign Exchange Dealers Association of India(FEDAI), Foreign Exchange Reserves in India.
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.
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)
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• Wood and J Byrne: International Business finance, Macmillan, New York.
• Walter,Ingo: Handbook of International Business ,John Wiley and sons, New York.
• Mithani D.M., ”Introduction to International Economics” Himalaya publishing House, Mumbai.