Get fully solved assignment, plz drop a mail with
your sub code
computeroperator4@gmail.com
Charges rs 125/subject and rs 700/semester only.
if urgent
then call us on 08791490301, 08273413412
DRIVE-Fall
2014
PROGRAM-MBADS
(SEM 4/SEM 6)
MBAFLEX/
MBAN2 (SEM 4) PGDFMN (SEM 2)
SUBJECT
CODE & NAME-MF0015 & INTERNATIONAL FINANCIAL MANAGEMENT
BK ID-B1759
CREDIT
& MARKS-4 Credits, 60 marks
Q1. Write
short notes on:
a)
Measuring exchange rate movements
b)
Factors that influence exchange rates
(Measuring
exchange rate movements, Factors that influence exchange rates)5,5
Answer.
a)
Measuring exchange rate movements
The movement of
exchange rates is the result of the combined effect of a number of factors that
are constantly at play. Economic factors, also called fundamentals, are better
guides as to how a currency moves in the long run. Short-term changes are
affected by a multitude of factors which may also have to be examined
carefully. Changes in one nation's economy are rapidly transmitted to that
nation's trading partners. These fluctuations in economic activity are reflected
almost immediately in fluctuations of currency values. These changes in
exchange rates expose all those firms having export import operations as also
multinationals with integrated cross border production and marketing
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.
1. For the demand and
supply of short term funds, the money market provides an equilibrating
mechanism.
2. It helps the
lenders and the borrowers of the short term funds in fulfilling the borrowing
and investment requirements at a competent market clearing price.
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 bartering is exchange of
goods between parties as per agreed terms without the use of money.
Q4. There
are 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 in which transaction is entered and the time
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), internal rate of return (IRR), profitability index (PI)
and discounted payback methods, and non-discounted cash flow techniques which
include payback and accounting rate of return (ARR) methods. The most commonly
and most widely accepted technique is NPV method. We now describe some of these
techniques in brief and NPV method in greater detail.
Q6. Write
short note on:
a) American
Depository Receipts(ADR)
b) Global
Depository Receipts(GDR)
(Explanation
of ADR, Explanation of GDR) 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 foreign company
without any issue of cross-border and cross-currency transactions. ADRs carry
price in American dollar, pay dividend in the same currency and can be traded
like any other share of US-based companies. Each ADR is issued by a US depository
bank and can represent one share. The owner of ADR has the right to obtain the
foreign stock it represents, but US investors are more interested in owning ADR
as they can diversify their investments across the globe. ADR falls within the
regulatory framework of the US and requires registration of the ADRs and the
underlying shares with the SEC.
Get fully solved assignment, plz drop a mail with
your sub code
computeroperator4@gmail.com
Charges rs 125/subject and rs 700/semester only.
if urgent
then call us on 08791490301, 08273413412
No comments:
Post a Comment