Basis of International trade : Theories of International trade – Comparative cost theory :
opportunity cost theory; Hecksher – Ohlin Theory ; Determination of international prices;
Economic growth and international trade ; gains of trade ; terms of trade ; factors influencing
terms of trade ; International factor movements; trade in services; trade policy when balance
of payments is in disequillibrium.
Foreign exchange risk and exposure. External techniques of expose management: Internal
techniques of exposure management : exchange rate movement and international trade.
Management of economic exposure: three types of exposure: measurement of economic
exposure: operating exposure: determinants.
Management of transaction exposure: forward market hedge; money market hedge: option
market hedge: hedging contingent exposure: hedging through invoice currency: exposure
Management of translation exposure: translation methods : Translation exposure vs
transaction exposure ; hedge translation exposure; translation exposure vs operating exposure;
Financial Account Standard Board Statement 52.
MCom (Masters in Commerce) Subjects