The basic trade model; application of basic trade model and the pattern of trade. Theory of comparative advantage and absolute cost advantage.
Chapter- 2 International Trade Policy
The instruments of trade policy and welfare; trade policies in developing countries. Regional trade integration: SAPTA, European Common Market, ASEA and OPEC.
Chapter-3 Financing International Trade
Payment methods for international trade; prepayment, letters of credit, drafts, consignment, open account trade finance methods; accounts receivable financing, factoring, letters of credit. Agencies that motivate international trade
Class Brief
24:39
Class-1 Requirements 1-6
18:51
Class-1 Requirements 1-6 Solve Class
23:13
Class-2 Requirements 7-23
00:00
Class-2 Requirements 8-23 SOlve Class
21:35
Chapter-4 International Flow of Funds
Balance of payments, current account, capital account, Factors affecting international trade flows, correcting a balance of trade deficit.
Exchange rate systems, government intervention, reasons for government intervention, direct intervention, indirect intervention, how central bank intervention can affect an MNC's value.
Chapter-7 Direct Foreign Investment
Motives for direct foreign investment revenue related motives, cost related motives. Benefits of international diversification, diversification benefits during a global crisis, diversification benefits of multiple projects.
Chapter-8 Multinational capital Budgeting
: subsidiary vs. parent perspective, tax differentials, restricted remittances, excessive remittances, exchange rate movements, factors to consider in multinational capital budgeting; exchange rate fluctuation, inflation, financing arrangement, blocked funds etc., adjusting project assessment for risk.
Chapter-9.1 International Cash Management- Cash flow Statement
