SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY

COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)

Module Title : Inten!tion!l Fin!n"i!l M!n!#e$ent
%o#!$$e : MBA (Fin!n"e &'e"i!li&!tion) ( MBA ) B!n*in# !nd Fin!n"e (Ti$e&te)
Te$ : VI
Cedit& : +
Code : Fin ,-+

Time required in terms of Student Learning:
Module Ai$:
The objective of this module is at acquaint the students with the financial management
problem of the multinational corporations and prepare them to solve the problems.
Module o./e"ti0e&1 Le!nin# out"o$e&
On completion of this module the student will be able to:
1. Understand the distinguishing features of the financial Management of Multinational
firms.
2. To nal!se the "apital budgeting and wor#ing capital decisions of $nternational firms.
%. Understand the nature of ris#s and their management.
&. Understand the $nternational ccounting 'tandards and their $mpact on corporate
performance.
(. Understand $nternational Ta)ation s!stem and their implications.
Te!"2in#1Le!nin# A''o!"2
'tudents will learn through a combination of face*to*face contact and guided stud!.
+ersonal contact sessions will include +resentations, calculation of major techniques,
classroom discussion and the additional wor# outside the class.
-uided stud! will include te)t readings and articles on contemporar! issues in
$nternational .inancial management which have appeared in recent economic/business
newspapers and journals. dditional material will also be emailed from time to time.
Ve&ion 3, Ye! 4-3+536
Le!nin# Hou&
"ontact 2(
-uided stud! 2(
+rojects and ssignments 1(
ssessment 10
Total 1(
SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY
COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)
Throughout the teaching/learning process a focus will be maintained on the application of
techniques currentl! in use. This will include a surve! of the prevalence of use in
contemporar! econom!.
Indi"!ti0e Content:
Ve&ion 3, Ye! 4-3+536
Unit Content& Se&&ion&
I7
Intodu"tion to
Inten!tion!l
Fin!n"i!l
M!n!#e$ent
$nternational finance 2 n overview
3ature and 'cope of $nternational .inance
$nternational .inancial Management 4s 5omestic
.inancial Management
$ssues in functioning of Multinational "orporations
6alance of +a!ment
&
II7
Foei#n E8"2!n#e
M!*et&
.unctions of .oreign 7)change mar#et
6id +rice, s# price, spread, cross rates , spot rates
in .oreign 7)change mar#et
Theories of .oreign 7)change rate 2 +urchasing
power parit!, $nterest rate parit!, $nternational fisher
effect.
.oreign e)change ris# 2 Transaction e)posure,
Translation e)posure, 7conomics e)posure and their
management
(
III7
Fin!n"i!l
M!n!#e$ent o9
Multin!tion!l
9i$
.oreign 5irect $nvestment
"ost of capital and "apital 'tructure 5ecision of the
Multinational firm.
Multinational capital 6udgeting 2 pplication and
$nterpretation
Multinational "ash Management
8
IV7
Count: Ri&*
An!l:&i& !nd
Inten!tion!l
T!8!tion
3ature of "ountr! ris# , techniques to assess of
countr! ris#, economic ris# indicators, raters of
countr! ris#
5ouble ta)ation avoidance agreements, various
models of treaties, Transfer pricing
(
V7
M!n!#in#
Foei#n
O'e!tion&
5erivatives
'waps 2 $nterest rate and currenc! swaps
.oreign currenc! options and futures
59, -59 and 7urocurrenc! mar#ets
(
TOT: 2(
SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY
COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)
E0!lu!tion %!!$ete&:
;nowledge, Understanding and +roblem solving capabilities will be tested in the
e)amination. <ualit! of the assignments and case submissions are assessed through, how
well the interpretations are derived b! the students. "ase submission and participation in
presentation will have equal weightage. L!te &u.$i&&ion& o9 !&&i#n$ent& !nd "!&e& ;ill
.e &u$$!il: e/e"ted7
E0!lu!tion Citei! :
S7 No7 Det!il& M!*& <
1 "lass +resentation, ssignment etc. 10
2 "lass +articipation = ttendance 0(
% <ui>>es 0(
& -roup +resentation 0(
( "ase 'tud! nal!sis 0(
8 Two "lass Tests 2 T1 = T2. 20
1 7nd*term 7)amination (0
? TOTAL 3--
A7 Cl!&& Te&t& : 4-<
Test will be held as per given deadline. The! would focus on student@s conceptual
understanding and application potential.
B7 Cl!&& =ui> : ? <
<ui> will be held during the session. The! would focus on student@s conceptual
understanding and application potential.
C7 @ROU% %ROAECT1 CASE STUDY : 3-<
Ve&ion 3, Ye! 4-3+536
SCHOOL OF BUSINESS STUDIES, SHARDA UNIVERSITY
COURSE MODULE FOR MBA (TRIMESTER BASED SYSTEM)
The project@s purpose is to provide the students with an opportunit! to integrate and
appl! the material learnt in this class to the development of a real*world servicing
e)perience.
5. Assignments : 10%
There will be TAO assignments during e)ercises in the course. .irst assignment would
be required to be submitted before the first T1 and other one would be required to be
submitted before the second T2 e)am. The! must be completed in individuall!. .or each
assignment, individual student will be required to prepare an anal!sis and
participate in the class discussion. -uidelines for assignments and reports will be
provided separatel!.
7. Cl!&& %!ti"i'!tion: ? <
+ositive contributions to class are encouraged and rewarded. "onsistent positive
contributions Bespeciall! during case discussionsC will help !ou if !ou are on a
grade border at the end of the course.
F EBAMINAIONS : ?- <
All e8!$& !e "lo&ed .oo*, .ut :ou $!: .in# ! "!l"ul!to7 T2i& ;ould .e ! t2ee5
2ou e8!$in!tion7
Attend!n"e: 'tudents are required to have a minimum of 1(D attendance in each course
during the term. Those who fall short of attendance are not permitted to
ta#e the end*term e)aminations.
Su##e&ted Re!din#&:
1. Madhu 4ij, $nternational .inancial Management, 7)cel 6oo#s.
2. pte , +.-., $nternational .inancial Management, Tata Mcgraw Eill, 3ew 5elhi .
%. 'hapiro, llen ", Multinational .inancial Management , Fohn Aile! = 'ons.
&. E.9.Machiraju, $nternational financial Management, Eimala!a +ublishing house
+vt :td..
(. Madura. Feff, $nternational .inancial Management,'outh western +ublishing
"ompan!.
GGGGG
Ve&ion 3, Ye! 4-3+536