BBA603 &ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS

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ASSIGNMENT

DRIVE	WINTER 2016
PROGRAM	BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER	VI
SUBJECT CODE & NAME	BBA603 &ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS
BK ID	B1905
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Question. 1. “Globalization is defined as a concept which connects countries across the worldthrough information, trade and technology”. Critically explain the concept.

Answer:Globalization or globalisation (see spelling differences) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation (such as the steam locomotive, steamship, jet engine, and container ships) and in telecommunications infrastructure (including the rise of the telegraph and its modern offspring, the Internet, and mobile phones) have been major factors in globalization, generating further interdependence of economic and cultural activities. Though many scholars place the origins of globalization in modern times, others trace its history long before the European Age of Discovery and voyages to the New World. Some even trace the origins to the third millennium BC. Large-scale globalization began in the 19th century. In

Question. 2. Compare the relationship between Current Account, Capital Account and OfficialReserve Account.Illustrate the concept of BoP Accounting.

Answer:Most countries of the world have their own national currency (a.k.a. domestic currency), which is used as money within the respective countries. Although all currency is money, most of the money of the world is actually stored as electronic information, such as savings and checking accounts, in the databases of banks. Nonetheless, this electronic information always expresses quantity in terms of a certain currency; therefore, hereinafter, we will use the term currency to designate all forms of money that are denominated in the currency.

Question. 3. Give introduction on foreign exchange. Elaborate on foreign exchange markets androle of international forex markets.

Answer:A financial market is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade.

Financial markets can be found in nearly every nation in the world. Some are very small, with only a few participants, while others - like the New York Stock Exchange (NYSE) and the forex markets - trade trillions of dollars daily.

Question. 4. Explain the Foreign Direct Investment (FDI). Give the comparison between AmericanDepository Receipt (ADR) and Global Depository Receipt (GDR). Write the categoriesfor trade blocs.

Answer:A foreign direct investment(FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control.

The origin of the investment does not impact the definition as an FDI: the investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding operations of an existing business in that country.

Question. 5. Write down the differences between GATT and WTO. Explain the problems andachievements of GATT & WTO.

Answer:The short answer is no. The WTO is the GATT plus a lot more. There have been eight rounds of trade negotiations since 1947. The first five rounds were of relatively short duration and dealt mainly with tariff reductions. The sixth, the Kermedy Round (1963-67), achieved deeper and wider tariff cuts, especially in industrial tariffs, and brought developing country concerns to the fore.

The seventh, the Tokyo Round, which lasted six years (1973 – 1979), cut tariffs substantially but also introduced a series of codes on non-tariff

Question. 6. Write the process of issuing letter of credit.

Describe the different types of letter of credit.

Answer:When you hear the phrase 'letter of credit,' it might be natural to think it refers to a document verifying that you are creditworthy, but that isn't the case. A letter of credit is a document issued by a third party that guarantees payment for goods or services when the seller provides acceptable documentation. Letters of credit are usually issued by banks or other financial institutions, but some creditworthy financial services companies, like insurance companies or mutual funds, might issue letters of credit under certain

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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