INTERNATIONAL FINANCIAL MANAGEMENT

I wrote this book International Financial Management with the following objectives.

·        To demonstrate to readers that the subject of International Financial Management simple to understand, relevant in practice and interesting to learn.

·        To help managers appreciate the logic for making better financial decisions.

·        To explain the concepts and theories of financial derivatives in a simple way so readers could grasp them very easily and be able to put them in to practice.

·        To provide a book that has a comprehensive coverage for financial derivatives and their analysis.

·        To create a book that differentiates itself from other books in terms of coverage, presentation.

This book useful to Students, Job Interviews, Investors, Financial advisers, Financial managers and Fund managers to relate theories, concepts and data interpretation to practice.

 

This book International Financial Management aims to assist the reader to develop a thorough understanding of the concepts and theories in a systematic way. To accomplish this purpose, the recent thinking in the field of International Financial Management has been presented in a most simple, and precise manner.

 

The main features of the book are simple understanding and key concepts.

 

The book contains a comprehensive analysis of topics on International Financial Management i.e. Foreign Exchange market, Exchange rates, International Parity relationships, Foreign exchange risk, International monetary system, Balance of Payments, Global investments, Foreign Direct Investment and International financial markets  with a view that readers understand financial decisions thoroughly well and are able to evaluate their implications for investors and traders.

 

This book begins with the Introduction of International Financial management, Foreign exchange market, Exchange rates. With this foundation, readers can easily understand the International finance.

 

The text material has been structured to focus on International Financial Management and discusses the theories, concepts and assumptions.

 

It is hoped that this will facilitate a better understanding of the subject matter.

 

 

CONTENTS

1. INTRODUCTION TO INTERNATIONAL FINANCIAL MANAGEMENT

2. FOREIGN EXCHANGE MARKET

        Introduction to Foreign Exchange market

        Structure of Foreign exchange market

        Types of transactions and settlement dates

        Participants in Foreign exchange market

        Functions of Foreign exchange market

        Segments of Foreign exchange market

3. FOREIGN EXCHANGE RATES

        Foreign Exchange rate Quotations

            Direct Quote

            Indirect Quote

        Spot Exchange rates

        Cross rates

        Bid-Ask Spread

            Bid Price

            Ask Price

            Factors influencing Spread

        Forward Exchange rates

4. INTERNATIONAL PARITY RELATIONSHIPS

        Interest rate parity

        Purchasing Power parity

        Forward rates and expected future spot rate parity

        International Fisher effect

5. FOREIGN EXCHANGE RISK

        Transaction exposure

        Economic exposure

        Translation exposure

6. HEDGING FOREIGN EXCHANGE RISK

        Instruments for hedging currency risk

           Forward contract

           Currency futures

           Currency ETFs

           Currency options

           Money market operations

7. RISK MANAGEMENT

        Definition

        Steps in Risk management process

        Types of Risk

8. GLOBAL INVESTMENT MANAGEMENT

        Risks in Global investment

        Benefits of Global investing

        Why Global Investment

        Where to invest

        Factors influencing global investment decisions

9. INTERNATIONAL MONETARY SYSTEM

        Introduction

        Features of International monetary system

        Stages of International monetary system

        International Monetary Fund (IMF)

        The World bank and its group

10. EXCHANGE RATE REGIME

        Types of Exchange rate Regimes

        Trends in Exchange rate regime

        Who determine the exchange rates

        Determinants (factors) of exchange rates

11. BALANCE OF PAYMENTS (BOP)

        Definition

        Importance of Balance of Payments

        Components of BOP

        Deficit

        Surplus

        Imbalances of balance of Payments

        Causes of BOP imbalances

        Statement of BOP

12. FOREIGN DIRECT INVESTMENT (FDI)

        Introduction

        Types of FDI

        Methods of FDI

        Forms of FDI incentives

        Advantages of FDI

        Disadvantages of FDI

        FDI in India

        Difference between FDI and FII

13. INTERNATIONAL FINANCIAL MARKETS

        Definition of Financial markets

        Types of Financial markets

           Capital markets

           Money markets

        Sources of International finance/fund

           Commercial banks

           International Agencies

           International capital markets

              GDRs

              ADRs

              FCCBs

              IDRs

              ICDs