Balance of payments, analysis of Balance of payments statements; Theories of exchange rate determination; Flow and stock approach; Foreign exchange market, quotation of exchange rates in spot and forward markets and cross rates; International parity conditions, interest rate parity, role in pricing of currency forward rates; computing the cost of financing for overseas borrowing; purchasing power parity; Foreign exchange rate risk exposure and hedging alternatives, currency forwards, currency options; Managing operating risk exposure; International monetary system, currency board and currency board like systems, international capital flows, emerging markets; China�s exchange rate regime, European Monetary Union, Greek debt crisis.