Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call
us at : 08263069601
ASSIGNMENT
Course Code :
MS - 45
Course Title :
International
Financial Management
Assignment Code :
MS-45/TMA/SEM
- II /2015
Coverage :
All Blocks
Note: Attempt all the questions and submit this assignment on or before
31st October, 2015 to the coordinator of your study centre.
Q. 1. Explain in detail how the international financial architecture
evolved over a period of time.
Answer:The world experienced substantial changes prior to 1914,
which created an environment favorable to an increase in and development of
international financial centers. Principal among such changes were
unprecedented growth in capital flows and the resulting rapid financial center
integration, as well as faster communication. Before 1870, London and Paris
existed as the world's only prominent financial centers. Berlin and
Q. 2. Explain Purchasing Power Parity (PPP) relationship and its
applications. What are the reasons for deviations from such relationship?
Answer: Purchasing power parity is both a theory about exchange
rate determination and a tool to make more accurate comparisons of data between
countries. It is probably more important in its latter role since as a theory
it performs pretty poorly. Its poor performance arises largely because its
simple form depends on several assumptions that are not likely to hold in the
real world and because the amount of foreign exchange activity due to importer
and exporter demands is much less than the amount of activity due to investor
demands. Nonetheless, the theory remains important to provide the background
for its use as a tool for
Q. 3. Describe different types of foreign exchange exposures. Explain
the techniques used for management of transaction exposure.
Answer:Transaction exposure, defined as a type of foreign exchange
risk faced by companies that engage in international trade, exists in any
worldwide market. It is the risk that exchange rate fluctuations will change
the value of a contract before it is settled. Transaction exposure is also
called transaction risk.
Transaction Exposure Meanin
Transaction exposure, meaning
risk that foreign exchange rate changes will adversely affect a cross-currency
transaction before it is settled, can occur in either developed or developing
nations. A cross-currency transaction is one that involves multiple currencies.
A business contract may extend over a period of months. Foreign exchange rates
can fluctuate instantaneously. Once a cross-currency contract has been agreed upon,
for a specific
Q. 4. Explain in detail the Credit Insurance Policies and Maturity
Factoring services offered by Export Credit Guarantee Corporation.
Answer:ECGC is a Corporation set up by the government of India for
providing export credit insurance and guarantee facilities to India's
exporters. It functions under the administrative control of the Ministry of
Commerce. This organisation is offering its services to the exporting community
for more than 47 years. It has evolved different credit insurance products to
suit the requirements of Indian exporters and commercial banks.
Q. 5. Discuss the basic steps involved in evaluating foreign projects.
Why should a foreign project be evaluated individually as well as from its
parent company's viewpoint?
Answer:1. Planning an Evaluation at the Design Stage:Independent
Project Evaluations are required for all projects.
Depending on the evaluation
purpose, Independent Project Evaluations are undertaken at mid-term of the
project (mid-term evaluations) and/or shortly before the end of the project
(final evaluations). Projects lasting four years or more must undergo a
mid-term evaluation and a final evaluation.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call
us at : 08263069601
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.