KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOC-015 Course Name: International Trade and Finance-II
1	Foreign Exchange Market Evolution of foreign exchange rate determination mechanism, Speculation and arbitrage, role of expectations, currency swaps, future and options, Asset approach to exchange rate, Portfolio balance approach, FOREX management strategy, Management of foreign exchange with special reference to India, Indian Rupee and its fluctuations in International currency market. Reading List • Branson, W.H. (1980). Asset Markets and Relative Prices in Exchange Rate Determination. International Finance Section, Department of Economics, Princeton University. • Frankel, J.A. (1993). Monetary & Portfolio Balance Models of Exchange Rate Determination. MIT Press, Cambridge. • Heller, H.R. (1974). International Monetary Economics. Prentice- Hall, Englewood Cliffs, N.J. • Pilbearn, Keith (2006). International Finance. Palgrave Macmillan.
2	Balance of Payment Concepts, structure and disequilibrium in Balance of payments; Monetary model of BOP under fixed and flexible exchange rates, Devaluation and BOP crisis- Effects of Devaluation; elasticity and Absorption Approach- Marshall- Lerner Condition, J-Curve; Foreign trade multiplier; Recent trends in BOP in India. Reading List • Alexander, S.S. (1959). Effects of Devaluation on Trade Balance. American Economic Review, 49, 21-42. • Kreinin, M.E. & Officer, L.H. (1981). The Monetary Approach to the Balance of Payment: A Survey (Princeton Studies in International Finance No. 43). Princeton University. • McCallum, Bennett T. (1996). International Monetary Economics. Oxford University Press, New York. • Stern, R.M. (2017). The Balance of Payments: Theory and Economic Policy. Routledge. • Thirlwal, A.P (1999). Balance of Payments Theory. Oxford University Press, New York.
3	Open Economy Adjustment Policies Internal and external balance; Swan Diagram, Assignment Problem; Expenditure Switching and changing policies; Mundell-Fleming Model-Combining monetary and fiscal policies; Implications of Impossible Trinity in the Indian Context. Reading List • Caves, R.E. & Johnson, H.G. (Eds.). (1968).Readings in International Trade. Homewood, Allen & Unwin, London. • Rivera-Batiz, Francisco L. & Rivera-Batiz, Luis A. (1994). International Finance and Open Economy Macroeconomics. Macmillan. • Salvatore, D. (2019). International Economics. John Wiley and Sons.
4	International Financial Management and Institutions International Capital Movements: FDI and Portfolio Investment; Euro currency market and International Bond Market; Funding and Risk Management; Currency Crisis: East Asian Financial Crisis, Sub-Prime lending Crisis, Greece Crisis, Euro Crisis and Brexit. Evolutionary and Operational developments in International Institutions: IMF, IDA, ADB. Reading List • Kindleberger, C.P. (1996). A History of Financial Crisis: Manias, Panics and Crashes. John Wiley and Sons, New York. • Salvatore, D. (2019). International Economics. John Wiley and Sons, New York. • Whalley, John (1985). Trade Liberalization Among Major Trading Areas. Cambridge University Press.