In the last 3 years, we have seen high volatility in the international financial markets. The currencies of emerging economies such as Brazil, Russia, India, China, & South Africa (BRICS) touched new lows. The sudden depreciation of these currencies have brought lot of trouble to the Governments of these nations.
In 2013, Indian Rupee plummeted to all time low of Rs.68.80 for 1 US$. The fall was due to various Global, Domestic and Geopolitical reasons. The rupee recovered very well after Dr. Raghuram Rajan took charge as RBI governor. Currently, i.e., in Nov /Dec 2017, after almost 3 years, rupee is on the verge of strengthening and this is giving nightmares to Exporters. Last year we have seen lot of fluctuation in Rs/$ rate becasue of Demonetisation, the U.S. President-elect Donald Trupm’s focus on Americanization, Speculation of Federal Reserve’s interest rate hike, Cash crunch in Indian MSMEs and Unimpressive quarterly result of few corporates.
Dr.Raghuram Rajan is former chief economist of International Monetary Fund(IMF). He is a gold medalist from IIT Delhi & IIM-A. He was professor at the University of Chicago Booth School of Business before taking charge at IMF. Before becoming Governor of RBI he was Chief Economic Advisor to Prime Minister and Ministry of Finance. Currently he is back to Academics and Continuing as Professor at Chicago Booth School of Business.
In today’s highly globalized world, foreign exchange play a very significant role. All organisations that operate internationally are exposed to the foreign exchange risk. It becomes imperative for organisation to manage the foreign exchange risk.
When a company operates in foreign country it is bound to experience foreign currency risk. This in no way means that companies should stop their international activity. Rather, if the company can employ good foreign exchange risk management techniques then they can reduce their foreign exchange exposure.
To manage foreign exchange risk, one must be well aware of the major international finance concepts. Without having proper knowledge of international finance it is impossible for mangers to handle foreign exchange fluctuation risks. This subject deals with all those concepts that are vitally importance for a international finance student.
BOOKS FOR INTERNATIONAL FINANCE
International Finance by Maurice D. Levi, 3rd edition, Mc Graw Hill Publishers (International Edition) is the best book for the International Finance.
Those students who are hungry for knowledge should prefer this book. Unfortunately, this book is not available in many libraries as it is costly compared to other books on IF.
The Second preference must be given to the Text Book of P.G. APTE’s “INTERNATIONAL FINANCIAL MANAGEMENT”. Almost all college libraries will definitely have this book. The book covers more than 90% of the syllabus and is written with Indian perspective. Any student who wants to follow OU MBA SYLLABUS for IF must prefer P.G. APTE’s books. This book provides knowledge + covers majority of syllabus.
If any student is interested in using both books Levi’s and Apte’s, then that would be excellent because one gives international exposure and the other Indian.
Apart from these two books one can also follow International Finance by Eun & Resnick, and Multinaional Financial Management by Alan Shapiro
Imp Questions According to New Syllabus CBCS (2016-17)
International Finance Important Questions Password is mRbIf122018