4th Termister

IIM-Sambalpur

Batch 2019-21

Term-IV: 2020

Credits-3: 30 Hours

Course: International Finance

Instructor: Sunil K. Parameswaran

Email: tarheelconsulting@gmail.com

Phone: 91-98452-43420

Course Overview

The main objective of the course is to study the operation of international money and capital markets, and the environment in which Multi-National Corporations (MNCs) operate, after acquiring a sound perspective of the macroeconomic effects which influence such markets. The course will also explore the different sources of risk in international markets, and the tools and techniques for managing them. Finally, the issues of determining the cost of capital and taking capital budgeting decisions for MNCs will be dealt with.

Pre-requisites/ Co-requisites

There are no prerequisites, but a prior knowledge of economics and financial management will be a definite advantage. Students who have no background in economics/finance, should contact the faculty for recommended readings. Needless to say, they will have to work just a little bit harder to catch up with the rest of the class. Some parts of the course will be mathematical. The faculty will pitch the quantitative portions of the course at an appropriate level, after assessing the abilities of the class on an average.

Learning Objectives

1)    To understand the ecosystem in which individuals, firms, and countries operate

2)    To appreciate the intricacies of the global economic system

3)    To be able to appreciate and construct the balance of payments (BOP) for a nation

4)    To grasp the essentials of financial derivatives – futures/forwards/options/swaps

5)    To get acquainted with FOREX spot and forward markets.

6)    To understand the structure; pricing; and uses of FOREX derivatives.

7)    To understand the cost of capital and capital budgeting from the perspective of a multinational corporation.

8)    To understand issues pertaining to international trade.

Teaching Methods

1)    PPT Based Lectures

2)    Excel Based Problem Solving Sessions

3)    Documentaries

Textbooks

International Finance: Theory & Policy by Krugman, Obstfeld, and Melitz, Pearson

Evaluation Components

1)    Mid-Term Examination 25%

2)    End-Term Examination 35%

3)    Quizzes -40% (2 x 20%)

The Mid-Term and End-Term examinations will be a blend of theory; logical reasoning; and numericals.  The quizzes will be multiple choice.

Session-wise Topics

FACULTY PROFILE

My name is Sunil Parameswaran. I am a business school professor and freelance corporate trainer, currently based in Bangalore. I have a PGDM from IIM-Bangalore, and a Ph.D from Duke University, North Carolina.

A prolific writer, I have published several books, primarily in the field of Financial Derivatives, with McGraw-Hill in India and in Singapore, and John Wiley in Singapore and in India.

I am a Visiting Faculty at some of the leading business schools in India, where I anchor courses in the area of Finance. My primary areas of interest are Securities Markets; Financial Derivatives; Fixed Income Securities; and International Finance.

For the past 16 years I have been active as a corporate trainer and management consultant. I have delivered training programs on Global Securities Markets and Global Banking to some of the multinational IT firms located in India. I also have over 25 years of teaching experience and have taught at leading business schools in the U.S., Singapore, Australia, and India.