IB0010 & INTERNATIONAL FINANCIAL MANAGEMENT

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DRIVE Winter 2014

PROGRAM-MBADS (SEM 4/SEM 6)

MBAFLEX/ MBAN2 (SEM 4)PGDFMN (SEM 2)

SUBJECT CODE & NAME-ib0010 & INTERNATIONAL FINANCIAL MANAGEMENT

BK ID-B1759

CREDIT & MARKS-4 Credits, 60 marks

Q1. Discuss the goals of international financial management. 10

Answer: Goals of International Financial management: Effective financial management is not limited to the application of the latest business techniques or functioning more efficiently but includes maximization of wealth meaning that it aims to offer profit to the shareholder, the owners of the businesses and to ensure that they gain benefits from the business decisions that have been

Q2.The key component of the financial system is the money market that acts as a fulcrum of monetary operations. Write down the important points under each category mentioned below.

a) Functions performed by money market

b) International interest rates

c) Standardized Global Market regulations.

(Explanation of important points of functions performed by money market, Explanation of international interest rates, Explanation of standardized global market regulations)3,3,4

Answer.

a) Functions performed by money market

There are three broad functions that are performed by the money market.

Q3.Thousands of years back the concept of bartering between parties was prevalent, when the concept of money had not evolved. Explain on counter trade with examples

(Introduction of counter trade, Explanation of Different forms of counter trade, Examples) 3, 5, 2

Answer.

Counter trade

When the concept of money had not evolved. A person could give say 100 bags of wheat and get wood or coal, a certain quantity for cooking. These bartering contracts were between individuals or small kingdoms. Bartering exists today also but at different level. For example, Iran may give 100 million barrels of oil to France and get 5000 guns of certain type in exchange. We can say that

Q4.There is different techniques of exposure management. One is the Managing Transaction Exposure and the other one is the managing operating exposure, so you have to explain on both Managing Transaction Exposure and Managing Operating Exposure.

(Explanation of Managing transaction exposure, Explanation of Managing operating exposure) 5, 5

Answer.

Managing transaction exposure

Transaction exposure calculates gains or losses which occur after the current financial compulsions according to terms of reference are resolved. Taken that the deal would lead to a future inflow or outflow of foreign currency cash, any unprecedented alterations in rate of exchange amid the period

Q5.Every firm is going on concern, whether domestic or MNC. Explain the techniques of capital budgeting and the steps to determine cash flows.

(Explanation of techniques of capital budgeting-NPV, IRR, PI, Payback period, Determination of cash flow) 5, 5

Answer.

Techniques of capital budgeting-NPV, IRR, PI, Payback period

There are many techniques which can be used to analyze the projects. These techniques can be broadly classified into discounted cash flow techniques, which include net present value (NPV),

Q6.Write short note on:

a)      American Depository Receipts(ADR)

b)    Portfolio

 (Explanation of ADR, Explanation of portfolio) 5, 5

Answer.

American Depository Receipts (ADR):

It represents ownership in the shares of a non-US company and trades in the American stock markets. ADRs enable American investors to buy shares in

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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or

Call us at : 08263069601

(Prefer mailing. Call in emergency )