Master the financial decisions of global corporations — navigate foreign exchange markets, manage cross-border investments, and understand the macroeconomic forces shaping the international monetary system.
Fifteen weeks of comprehensive instruction across four units. Click any active week to access
lecture content, interactive quizzes, scenario debates, and facilitator guides.
Country Supplements:
🇺🇸 United States — Reserve currency issuer, the Fed and the global financial cycle, US capital markets as the benchmark, TCJA tax reform, OFAC sanctions.
🇬🇧 United Kingdom — London as the world's FX capital, Black Wednesday (1992), Brexit, the GBP flash crash, UK MNCs in India.
🇨🇳 China — The partially convertible giant: CNY vs. CNH, capital controls, the US-China trade war, the Belt and Road, the digital yuan.
🇷🇺 Russia — The most sanctioned major economy. The 1998 crisis, the 2022 sanctions regime, frozen reserves, SPFS/Mir, capital controls, the oil price cap.
🇦🇺 Australia — The commodity currency, RBA inflation targeting, the AUD carry trade, superannuation as a global capital force, and the Australia-India economic corridor.
🇦🇫 Afghanistan — Fragile-state economy. Hawala system, sanctions compliance, the frozen central bank case, humanitarian finance.
Establish the foundational understanding of international financial management. Distinguish IFM from domestic finance, explore the goals of financial management in a global context, and understand the scope and nature of MNC financial operations.
Understand the evolution and characteristics of Multinational Corporations. Explore theories of MNC growth including the Product Life Cycle Theory, Internalization Theory, and the Eclectic (OLI) Paradigm. Examine modes of international business from exports to wholly owned subsidiaries.
Dive into the theoretical foundations of international trade. Study the Theory of Absolute Advantage (Adam Smith), Comparative Costs (David Ricardo), Heckscher-Ohlin Factor Proportions Theory, and the Leontief Paradox. Analyze the Free Trade vs. Protectionism debate and the role of tariff and non-tariff barriers.
Master the Balance of Payments framework under IMF BPM6 guidelines. Examine the Current Account, Capital Account, Financial Account, and Errors & Omissions. Analyze surplus and deficit scenarios, disequilibrium corrective measures, foreign exchange reserve adequacy, and India's BOP trends over the past decade.
Trace the evolution of the International Monetary System from the Gold Standard (1870s–1914) through Bretton Woods (1944–1971) to the modern Managed Float. Classify exchange rate regimes — fixed, floating, managed float, currency boards, and dollarization. Study India's exchange rate regime from LERMS to the present.
Analyze the demand and supply framework for foreign exchange. Explore fundamental factors: inflation differentials, interest rate differentials, income levels, government controls, and market expectations. Deep dive into Purchasing Power Parity (PPP) — absolute and relative forms, the Law of One Price, and the Big Mac Index.
Master the Interest Rate Parity (IRP) theory — Covered (CIRP) and Uncovered (UIRP). Understand the Fisher Effect, the International Fisher Effect (IFE), and their implications for exchange rate forecasting. Solve numerical problems linking interest rates, inflation, and currency movements.
Examine central bank intervention in FX markets — objectives, sterilized vs. unsterilized intervention. Study the RBI's exchange rate management policy and key provisions of FEMA 1999. Analyze historic currency crises: Asian Financial Crisis (1997), Mexican Peso Crisis (1994), and Indian Rupee depreciation episodes.
Explore the world's largest financial market. Understand the OTC nature, 24-hour trading cycle, and major trading centers. Identify key participants — commercial banks, central banks, corporations, institutional investors, and retail traders. Study major currency pairs and electronic trading systems (EBS, Reuters, Bloomberg).
Master FX quotations — direct and indirect quotes, American and European terms, two-way bid-ask spreads. Understand spot and forward rate mechanics, forward points, and the calculation and interpretation of forward premiums and discounts. Extensive numerical problem-solving.
Compute cross rates using the chain rule for multi-currency conversions. Identify and exploit arbitrage opportunities — two-point (locational), three-point (triangular), and Covered Interest Arbitrage (CIA). Numerical problems on all three arbitrage types with profit computation.
Explore international equity and debt instruments. Understand ADRs (Levels I–III, Rule 144A), GDRs, FCCBs, Masala Bonds, and External Commercial Borrowings. Study RBI guidelines, automatic vs. approval routes, and analyze successful Indian corporate issuances (HDFC, NTPC, Tata Motors).
Understand the benefits of international portfolio diversification — reduction of unsystematic risk, correlation structures across markets, and the home bias puzzle. Extend CAPM to the international context with ICAPM. Assess barriers to diversification including regulatory, informational, and currency risks.
Examine capital structure decisions for MNC subsidiaries. Evaluate parent vs. subsidiary perspectives on financing, transfer pricing implications, and profit repatriation strategies. Conduct country risk assessment using sovereign credit ratings and analyze tax havens and offshore financial centers.
Assess the impact of currency fluctuations, sanctions, trade wars, and political instability on international investments. Case studies: Brexit, US-China trade tensions, and Russia-Ukraine financial spillovers. Comprehensive course review and exam preparation strategies.