International Trade & Foreign Exchange

Paper Code: 
ABF 202
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcome(COs):

Course Outcomes

 

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO 73 Acquire knowledge about Trade theories and Foreign Exchange Market with a deep understanding of terminologies used in this sphere.

CO 74 Comprehend the use of different theories of exchange rate mechanism and Analysis the working of Trade Blocks.

CO 75 Understand the pivotal role of Exchange control and Balance of payments in Forex.

CO 76 To analyse various trade barriers faced in international trade and Examine the role of WTO in promotion of the international trade.

CO 77 To analyse the impact of current foreign trade policy in export promotion and understand the role  of MNCs in international trade.

Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.   

 

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 

International Trade-

·         Concepts, Characteristics, Advantages and Disadvantages of International Trade

            Theories of International Trade-

·         Absolute cost advantage and comparative cost advantages and Heckscher-ohlin theory, Product Life cycle theory

            Foreign Exchange Markets:

·         Functions, Participants,Spot rate, Forward rate, Future , Option and Arbitrage.

·           Factors influencing exchange rates. Fixed and Flexible Exchange Rates.

·          Causes of fluctuations in Exchange rates.

9.00
Unit II: 

Exchange Rate Determination :

·         Theories of Foreign Exchange Rate-Mint Parity theory-PPP theory and Balance of Payment theory.

Regional Economic Blocks-

·         Organization, structure and Functions of  SAARC, ASEAN and EU, NAFTA

 

9.00
Unit III: 

Exchange Control:

·         Meaning, Features, Objectives, Methods, Merits & Demerits, Exchange control in India.

Balance of payment:

·         Meaning, Components, BOP v/s BOT, Disequilibrium in BOP,  Rectification of disequilibrium.

9.00
Unit IV: 

Free trade vs Protection-

·         Trade Barriers- Objectives, types (Tariff and Non-Tariff)

·         Dumping - Kinds of dumping, its effect and Anti dumping measures

              WTO-

·         Introduction, Objectives, Functions and India & WTO.

9.00
Unit V: 

India’s Foreign Trade-

·         Volume, Direction and Composition, current foreign trade policy, export promotion

MNC’s:

·         Importance and problems, MNC’s in India, difference between Multinational, Transnational and Globalized companies.

Essential Readings: 
  • Avadhani,V.A,” International Finance, Theory and Practice”, Himalaya Publishing Company, New Delhi.
  • S.K. Mathur, “ International Trade and Finance”, Shivam Book House, Jaipur.
  • Cherunilam Francis “International Economics”, Tata McGraw-Hill Publishing Company Limited, new Delhi
  • Cherunilam Francis “International Business”, Tata McGraw-Hill Publishing Company Limited, new Delhi
References: 
  • Maurice, Levi, “ International Finance”, McGraw Hill, Int. Ed. New York.

·         Walter, Ingo: Handbook of International Business, John Wiley and Sons; New York.

·         Wood, D. and J Byrne: International Business Finance, Macmillan, New York.

·         Sodersten B, “International Economics”, Macmillan, London.

·         Dominick, “ International Economics”, Macmillan Publication Company, New York.

·         Mithani D. M. Introduction to International Economics (Latest)- Himalaya Publishing House, Mumbai

·         https://www.indiabudget.gov.in/economicsurvey/ (Economic survey, various issues)

·         https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Report%20on%20Cu... (RBI Report on Currency & Finance, various issues)

·         Websites: https://www.rbi.org.in/ (RBI), https://www.imf.org/en/Home (IMF), https://www.worldbank.org/en/home (WORLD BANK), https://www.wto.org/ (WTO)

·         https://www.wto.org/english/res_e/reser_e/annual_report_e.htm (WTO Annual report, various reports)

·         International Journal of Financial Management

·         Indian Journal of Finance

·         Journal of Banking, Information Technology and Management

·         World Affairs- The Journal of International Issues

·         Foreign Trade Review

Academic Year: 
2022-2023
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