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DRIVE fall 2015
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. 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 made. So, the goal of international
financial management is to increase the wealth of shareholders
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
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
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
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 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
Get fully solved assignment. Buy online from website
online store
or
plz drop a mail with your sub code
we will revert you within 2-3 hour or immediate
Charges rs 125/subject and rs 700/semester only.
if urgent then call us on 08791490301, 08273413412
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