Learning Unit 7
Instructions to facultyF. International Financial ManagementGeneral:
- This subject may be totally new to most participants. Even persons with economics
background may feel uncomfortable. Therefore, while administering this learning
unit, faculty may ensure that they are:
a. Explicit about the objectives of the learning unit
b. Make a comprehensive presentation on the fundamental principles relating
to International Financial Management using the material provided in
visual aids Nos. 47-52 given below.
c. Ensure that they explain the concepts with simple examples; faculty may
avoid the difficult mathematical concepts while transacting the unit.
d. Make reference to the Guide to Learning Activity provided for this unit.Presentation on objectives of the unit:
- Faculty may begin with a brief presentation on the objectives of the learning unit,
which may include, inter alia, the following points:
o Enable participants to acquire the ability to read and understand statements of
balance of payments
o Acquire skills of conversion rates, by bid price, ask price and spread price.
o Work out arbitrage possibilities.
o Calculate expected exchange rate.
o Understand various exchange rate theories.
o Work on ‘covering exchange rate risk’ with reference to appreciation,
depreciation, hedging and translation exposure.
o Calculate the interest rate risk under different situations
o Make recommendations on procurements, manufacturing and viability based on
the case studies.- After the initial presentation on the objectives, faculty may make a more detailed
presentation on the fundamentals of International Financial Management as per the
visual aids Nos. 47-52. Faculty will also need to refer extensively to the reading
material provided for this learning unit.