Role Of International Financial Institutions

Course Code: BBA603

Course Title: Role of International Financial Institutions (4 Credits)




Course Contents


Unit 1: Globalization and Trade: International Finance, International trade, Challenges of international finance, Globalization and emerging trends of trade.


Unit 2: Balance of Payments: Events happening in the global economy,  Balance of payments,  Economy of a country


Unit 3: Currencies and Trade: Exchange of national currencies, Basics of foreign exchange markets, How currencies are traded.


Unit 4: Exchange Rate Systems: Exchange rate, Interpretation of exchange rate system, Theories, Currency convertibility and the strength of the rupee.


Unit 5: Derivatives: Financial or speculative, Price risk and exchange rate financial instruments like derivatives


Unit 6: Financing International Trade: Market instruments, Cash-in-advance, Modes of financing in international trade.


Unit 7: Concepts in International Finance: International trade- foreign Institutional investors and global depository receipts and their objectives.


Unit 8: World Bank: Functions and responsibilities of the Bank and its changing role.


Unit 9: International Monetary Fund: Primary responsibility of International Monetary Fund, Exchange rates and international payments, Special rights of the IMF, resources, Operations and current challenges.


Unit 10: UN and Other Multilateral Organizations: Multilateral institutions, International Bank for Reconstruction and Development, International Finance Corporation and Bank for International Settlements.


Unit 11: From GATT to WTO: GATT to WTO, General Agreement on Tariff and Trade (GATT) , Consensus on international trade practices, Journey of GATT, WTO


Unit 12: Regional Development Banks: Origin, Function and objectives of regional development banks, Asian Development Bank, African Development Bank, Council of European Development Bank and Inter-American Development Bank.


Unit 13: Global Financial Regulations:  Global financial crisis in 2007, New global rules and regulations Volcker Rule, Dodd Frank Act, Basel III Accord, Solvency II rules for the insurance sector, Role of international financial institutions and their role in global regulations.


Unit 14: Contemporary Issues in International Finance: Contemporary issues in international finance such as global imbalances, the euro zone crisis, the future of PIIGS economies, the growth of BRICS economies, the race of yuan to become the reserve currency by 2015 and sovereign wealth funds.