International Financial Management

About Course

Paper Code: 312405	——–.	Credits: 4	Class Hours: 120 hrs.
Paper Title:	International Financial Management

Course Content

Support Groups

Whats Apps

Chapter-1 Gains from Trade and Derivation of Equilibrium Rate of Terms of Trade
Traditional theory of trade: Comparative cost theory. Two-country-two-commodity model. Production Possibility Curves (PPC): Constant and increasing cost, Indifference curves, Optimum production and optimum consumption; Gains from trade: Before-trade and After-trade situation. Derivative of terms of trade from PPC. Offer curves. Equilibrium terms of trade. Theories of market imperfections: product life cycle theory and strategic trade theory.

Chapter- 2 Balance of Payments (BOP)
Balance of trade, Current account and Capital account. Debit side and credit site of BOPs; the concepts of deficit and the balance of crisis. Autonomous and induced capital. Role of government: import restriction and foreign aid.

Chapter- 3 International Financial Institutions
IMF, World Bank, International Financial Corporation, International Development Association, Bank for International Settlements, Regional Development Agencies. Asian Development Bank, The Islamic Development Bank. Asian Clearing Union.

Chapter-4 International Financial Markets
History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system, spot market and forward market. Foreign exchange quotation: Direct and Indirect.

Chapter-5 Exchange Rate Determination
Exchange rate equilibrium: composition of demand and supply, factors that influence exchange rates: Relative inflation rates, relative interest rates, relative income level, government controls, expectations, interaction of factors. Financial market perspective: Speculating on anticipated exchange rates.

Chapter-6 Exchange Rate Behaviour
Government influence on exchange rates, exchange rate systems: Fixed exchange rate system, freely floating exchange rates, managed floatation, pegged exchange rates, currency boards. Financial markets perspective. A single European currency, exchange rate target zone. Case: Asian currency crisis and government intervention.

Chapter-7 International Arbitrage and Interest Rate Parity
International Arbitrage: locational arbitrage, triangular arbitrage, covered interest arbitrage, Interest Rate Parity (IRP): Determination of Interest Rate Parity, determination of forward premium; financial market perspective. Case: Nike and Asian currency crisis.

Chapter- 8 Exchange Rate Risk Management
Forecasting exchange rates, techniques of forecasting, evaluations of forecast performance, exchange rate volatility, financial market perspectives, application of exchange rate forecasting to the Asian crisis. How exchange rate forecasting affect on MNC value?

Chapter-9 Measuring Exposure to Exchange Rate Fluctuations
Relevancy of exchange rate risk: PPP argument, the investor hedge argument, currency diversification arguments, stock holder diversification argument; types of exposures: Transaction exposure, economic exposure, translation exposure. Impact of exchange rate movements on MNC’s value.

Chapter-10 Foreign Exchange Operation and Documentation
Society for worldwide international financial transaction (SWIFT), International commercial terms (INCO terms): TT, MT, DD, TC, LC, documentary trade credit, insurance documents, bill of lading, multimodal transport documents, airway bill.

Chapter- 11 Operation of Documentary Credit
Choosing the method of payment, parties to a credit, advantages of letter of credit: confirmed and unconfirmed credits, fixed and revolving credits, transferable credits, back to back credits, operation of a letter of credit.

Chapter-12 Dealing in Foreign Exchange in the Context of Bangladesh
Risk management and treasury operations, dealing position, accounting and reporting, foreign risk management, reconciliation of Nostro balance, managements of risk arising in Vostro accounts, control over miscellaneous aspects of dealing operations.

Student Ratings & Reviews

No Review Yet

About Course

Course Content

Support Groups

Whats Apps

Chapter- 2 Balance of Payments (BOP)
Balance of trade, Current account and Capital account. Debit side and credit site of BOPs; the concepts of deficit and the balance of crisis. Autonomous and induced capital. Role of government: import restriction and foreign aid.

Chapter- 3 International Financial Institutions
IMF, World Bank, International Financial Corporation, International Development Association, Bank for International Settlements, Regional Development Agencies. Asian Development Bank, The Islamic Development Bank. Asian Clearing Union.

Chapter-4 International Financial Markets
History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system, spot market and forward market. Foreign exchange quotation: Direct and Indirect.

Chapter-10 Foreign Exchange Operation and Documentation
Society for worldwide international financial transaction (SWIFT), International commercial terms (INCO terms): TT, MT, DD, TC, LC, documentary trade credit, insurance documents, bill of lading, multimodal transport documents, airway bill.

Chapter- 11 Operation of Documentary Credit
Choosing the method of payment, parties to a credit, advantages of letter of credit: confirmed and unconfirmed credits, fixed and revolving credits, transferable credits, back to back credits, operation of a letter of credit.

Quick Link

Useful Links

Contact Info

©2025 Easy Education Bangladesh. All rights reserved.

Developed by Shakil Khan.

About Course

Course Content

Support Groups

Whats Apps

Chapter- 2 Balance of Payments (BOP) Balance of trade, Current account and Capital account. Debit side and credit site of BOPs; the concepts of deficit and the balance of crisis. Autonomous and induced capital. Role of government: import restriction and foreign aid.

Chapter- 3 International Financial Institutions IMF, World Bank, International Financial Corporation, International Development Association, Bank for International Settlements, Regional Development Agencies. Asian Development Bank, The Islamic Development Bank. Asian Clearing Union.

Chapter-4 International Financial Markets History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system, spot market and forward market. Foreign exchange quotation: Direct and Indirect.

Chapter-10 Foreign Exchange Operation and Documentation Society for worldwide international financial transaction (SWIFT), International commercial terms (INCO terms): TT, MT, DD, TC, LC, documentary trade credit, insurance documents, bill of lading, multimodal transport documents, airway bill.

Chapter- 11 Operation of Documentary Credit Choosing the method of payment, parties to a credit, advantages of letter of credit: confirmed and unconfirmed credits, fixed and revolving credits, transferable credits, back to back credits, operation of a letter of credit.

Student Ratings & Reviews

Happy New Year-2026

Chapter- 2 Balance of Payments (BOP)
Balance of trade, Current account and Capital account. Debit side and credit site of BOPs; the concepts of deficit and the balance of crisis. Autonomous and induced capital. Role of government: import restriction and foreign aid.

Chapter- 3 International Financial Institutions
IMF, World Bank, International Financial Corporation, International Development Association, Bank for International Settlements, Regional Development Agencies. Asian Development Bank, The Islamic Development Bank. Asian Clearing Union.

Chapter-4 International Financial Markets
History of foreign exchange: Gold standard and gold exchange standard, Bretton Woods Agreement and collapse of the system, spot market and forward market. Foreign exchange quotation: Direct and Indirect.

Chapter-10 Foreign Exchange Operation and Documentation
Society for worldwide international financial transaction (SWIFT), International commercial terms (INCO terms): TT, MT, DD, TC, LC, documentary trade credit, insurance documents, bill of lading, multimodal transport documents, airway bill.

Chapter- 11 Operation of Documentary Credit
Choosing the method of payment, parties to a credit, advantages of letter of credit: confirmed and unconfirmed credits, fixed and revolving credits, transferable credits, back to back credits, operation of a letter of credit.