International Financial Management: An Analytical Framework

Book description

"Comprehensive Coverage: The book covers all major issues and topics in the field of international Finance - Learning Tools: The book uses tools, such as learning objectives, marginalia, solved examples, Figures, tables, chapter summaries, exercises, case studies and multiple choice questions, to help the reader understand complex topics like currency options, currency futures and ¬Financial swaps Indian Perspective: Topics related to Indian economic and -Financial practices have been included – Indian foreign exchange market, India’s balance of payments, domestic policy on foreign trade and investments, Indian accounting and taxation system Real-Time Data: The use of data from sources, such as the RBI, UNCTAD, World Bank and IMF, makes the reader draw meaningful inferences and conclusions about recent developments and events Analytical Approach: A detailed and analytical discussion of every concept and theory from practical perspective will help practicing managers and executives to make the right choices"

Table of contents

  1. Cover
  2. Titlepage
  3. About the Author
  4. Contents
  5. Preface to Second Edition
  6. Acknowledgement
  7. Foreword to First Edition
  8. Preface to First Edition
  9. Testimonials
  10. 1 The Foreign Exchange Market: Structure and Operations
    1. Introduction
    2. Money as a Medium of Exchange
    3. The Foreign Exchange Market
    4. Arbitrage
    5. Nostro, Vostro, and Loro Accounts
    6. Forward Rates and Future Spot Rates
    7. Closing of Positions
    8. The US Dollar as a Vehicle Currency
    9. Trends in Foreign Exchange Trading
    10. Networks for International Transactions
    11. The Indian Foreign Exchange Marke
    12. Finance Function in a Multinational Context
    13. Summary
    14. Questions and Problems
    15. Multiple-choice Questions
    16. Further Reading
  11. 2 Force Systems and Resultants
    1. Introduction
    2. The Gold Standard
    3. The Gold Exchange Standard
    4. The Bretton Woods System
    5. Post-Bretton Woods Systems
    6. Alternative Exchange Rate Regimes
    7. The IMF Classification of Exchange Rate Regimes
    8. Selection and Management of Exchange Rate Regimes
    9. Exchange Rate Policy and Monetary Policy
    10. The Par Rate of Exchange
    11. Regional Monetary Integration—A Case of European Union
    12. Exchange Rate of the Indian Rupee
    13. Depreciation, Appreciation, Devaluation, and Revaluation
    14. Convertibility of Currency
    15. International Liquidity and International Reserves
    16. Intervention and Sterilization
    17. Summary
    18. Questions and Problems
    19. Multiple-choice Questions
    20. Further Reading
  12. 3 The Balance of Payments: Implications for Exchange Rates
    1. Introduction
    2. The Balance of Payments Manual
    3. Functions of the BOP
    4. Principles of BOP
    5. BOP Accounting
    6. National Income and International Transactions
    7. The BOP and Exchange Rates
    8. The BOP and Money Supply
    9. India’s BOP
    10. Summary
    11. Questions and Problems
    12. Case Study
    13. Multiple-choice Questions
    14. Further Reading
  13. 4 International Parity Relationship
    1. Introduction
    2. Exchange Rate Determination
    3. Factors Affecting Exchange Rates
    4. The BOP Theory of Exchange Rates
    5. The Purchasing Power Parity (PPP) Theory
    6. The Real Exchange Rate
    7. The Real Effective Exchange Rate (REER)
    8. Interest Rates and Exchange Rates
    9. Forward Rate Parity
    10. The Fisher Effect
    11. Exchange Rate Forecasting
    12. Summary
    13. Questions and Problems
    14. Multiple-choice Questions
    15. Further Reading
  14. 5 Management of Foreign Exchange Exposure and Risk
    1. Introduction
    2. Foreign Exchange Exposure and Risk: A Comparison
    3. Real and Nominal Exchange Rates
    4. Types of Exposure
    5. Summary
    6. Questions and Problems
    7. Multiple-choice Questions
    8. Case Study
    9. Questions
    10. Further Reading
  15. 6 Currency Forwards and Futures
    1. Introduction
    2. Currency Forward Contracts
    3. Currency Futures Contracts
    4. Traders and Trading Operations
    5. Forwards and Futures: A Comparison
    6. Relationship between Spot Rates and Futures Prices
    7. Pricing of Currency Futures
    8. The Hedge Ratio
    9. Cross Hedging and Delta Cross Hedging
    10. The U.S. Dollar Index (USDX) Futures
    11. Currency Futures in India
    12. A Glimpse of Two Major Futures Exchanges
    13. Summary
    14. Questions and Problems
    15. Multiple-choice Questions
    16. Further Reading
  16. 7 Currency Options
    1. Introduction
    2. Forms of Options
    3. In-the-Money, Out-of-the-Money, and At-the-Money
    4. Disposing of Options
    5. The Chemistry of Options
    6. Option Value
    7. Bounds for Option Prices
    8. Determinants of Option Price
    9. Trading Strategies
    10. The Binomial Option Pricing Model
    11. The Black–Scholes Valuation Model
    12. Put–Call Parity
    13. The Greeks
    14. Forwards/Futures and Options: A Comparison
    15. Futures Options
    16. Currency Options Trading in India
    17. Summary
    18. Questions and Problems
    19. Multiple-choice Questions
    20. Case Study
    21. Further Reading
  17. 8 Financial Swaps
    1. Introduction
    2. Parallel Loans
    3. Back-to-Back Loans
    4. Types of Swaps
    5. Market Quotations for Swaps
    6. Credit Default Swaps
    7. Summary
    8. Questions and Problems
    9. Multiple-choice Questions
    10. Case Study
    11. Questions
    12. Further Reading
  18. 9 Interest Rate Futures
    1. Interest Rates: Basic Concepts
    2. Interest Rate Futures
    3. Forward Rate Agreements (FRA)
    4. Interest Rate Futures (Reserve Bank) Directions, 2013
    5. Trading in Interest Rate Futures on National Stock Exchange
    6. Summary
    7. Questions and Problems
    8. Multiple-choice Questions
    9. Further Reading
  19. 10 Cross-border Investment Decisions
    1. Introduction
    2. Capital Budgeting
    3. Approaches to Project Evaluation
    4. Risks in Cross-border Investment Decisions
    5. Incorporating Risk in Investment Decisions
    6. Real Options
    7. Summary
    8. Questions and Problems
    9. Multiple-choice Questions
    10. Case Study
    11. Questions
    12. Further Reading
  20. 11 Financing Decisions of MNCs
    1. Introduction
    2. The Cost of Capital
    3. Capital Structure
    4. Methods of Raising Capital
    5. Summary
    6. Questions and Problems
    7. Multiple-choice Questions
    8. Further Reading
  21. 12 Management of Working Capital: An International Perspective
    1. Introduction
    2. Cash Management
    3. Marketable Securities
    4. Management of Receivables
    5. Inventory Management
    6. Financing Current Assets
    7. Summary
    8. Questions and Problems
    9. Multiple-choice Questions
    10. Case Study
    11. Further Reading
  22. 13 International Trade
    1. Introduction
    2. Theories of International Trade
    3. World Trade Organization
    4. Trends in World Trade
    5. India’s External Sector
    6. International Trade Finance
    7. Documents Used in International Trade Finance
    8. Institutional Credit
    9. Imports into India: Guidelines for Trade Credit
    10. Forfaiting
    11. Countertrade
    12. Export-Import Bank of India (Exim Bank)
    13. Export Credit Guarantee Corporation (ECGC)
    14. Summary
    15. Questions and Problems
    16. Multiple-choice Questions
    17. Further Reading
  23. 14 Foreign Investments
    1. Introduction
    2. Foreign Direct Investment
    3. Foreign Investments in India
    4. Indian Depository Receipts
    5. Foreign Investments by Indian Companies
    6. The Bilateral Investment Promotion and Protection Agreement
    7. Trends in FDI
    8. Bottlenecks in FDI Flows to India
    9. Summary
    10. Questions
    11. Multiple-choice Questions
    12. Further Reading
  24. 15 Portfolio Theory: An International Perspective
    1. Introduction
    2. The Markowitz Portfolio Model
    3. The Capital Asset Pricing Model
    4. International Portfolio Diversification
    5. Summary
    6. Questions and Problems
    7. Multiple-choice Questions
    8. Further Reading
  25. 16 The Indian Accounting and Taxation System
    1. Introduction
    2. The Accounting Standards Board
    3. Accounting Standard 11
    4. Tax Rates in Select Countries
    5. The Taxation System in India
    6. Double-taxation Avoidance Agreement (DTAA)
    7. Summary
    8. Questions
    9. Multiple-choice Questions
    10. Case Study
    11. Questions
    12. Further Reading
  26. 17 Multilateral Financial Institutions
    1. Introduction
    2. The International Bank for Reconstruction and Development
    3. The International Development Association
    4. The International Finance Corporation
    5. The Asian Development Bank
    6. The International Monetary Fund
    7. Summary
    8. Questions and Problems
    9. Multiple-choice Questions
    10. Further Reading
  27. Index
  28. Copyright

Product information

  • Title: International Financial Management: An Analytical Framework
  • Author(s): Thummuluri Siddaiah
  • Release date: January 2015
  • Publisher(s): Pearson Education India
  • ISBN: None