This book presents all aspects of international monetary theory, foreign exchange markets, international financial management and investment analysis. The book is relevant to real word problems in the sense that it provides guidance on how to solve policy issues as well as practical management tasks. This in turn helps the reader to gain an understanding of the theory and refines the framework.
Topics covered include:
► an introduction to international finance and international financial environment
► foreign exchange markets and foreign exchange rates
► exchange rate regimes and international monetary systems
► international parity conditions
► balance of payments and international investment positions
► open economy macroeconomics
► balance of payments issues and exchange rate movements: the elasticity approach, the absorption approach, the monetary approach, and analysis of FDI and trade balance interactions
► models of exchange rate determination: the Mundell-Fleming model, the flexible price monetary model, the Dornbusch model, the real interest rate differential model, and the portfolio balance model
► global derivatives markets
► derivative financial instruments for foreign exchange risk management: currency futures, currency options and currency swaps
► measurement and management of transaction exposure, economic exposure and accounting exposure
► country risk analysis and sovereign risk analysis
► foreign direct investment and international portfolio investment
Contents –
Module 1: International Financial Environment
1. An Introduction to International Finance
2. International Finance Environment
3. Foreign Exchange Market Theory
4. Balance of Payments
5. Foreign Exchange Markets
Module 2: International Parity Conditions and Exchange Rate Determination
6. Interest Rate Parity
7. The Theory of Purchasing Power Parity
8. Foreign Exchange Risk and Exposure
9. Exchange Rate Determination and Reporting
Module 3: International Securities Market
10. International Debt Financing
11. International Equity Financing
12. International Capital Market
13. International Bond Market
14. International Banking and Money Market
15. Eurocurrency Market – International Money Market
Module 4: International Corporate Finance
16. International Project Appraisal
17. Financing International Trade
18. Managing Networking Capital
19. Risk Management and Foreign Currency Hedging Decisions: Future and Options
20. Foreign Currency Futures and Options, Interests and Currency Swaps
21. International Financial Instruments
22. Contemporary Issues in International Finance
23. Foreign Exchange Reserves Management India
24. Topic of Present Day Relevance – Cryptocurrency and Bitcoin
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