--+ FTP os Aibsary Copy Palia|acas Course: [Link] (Hons.) - 111 Semester Subject: Intemational Financial Management Paper: MCH7121 Maximum Marks; 50 marks Time allowed: 3hrs Total Number of Pages: | Instructions: The students are Tequired to answer five questions in all selecting at least one question from each unit, Unit 1 QI. The international monetary system was not the way itis atthe present situation. Discuss the evolution of the international monetary system highlighting various important milestones. Q2. India has a peculiar situation of a deficit of balance of payments. Identify the reasons for this situation that are specifigally related to the balance of trade and suggest measures to minim this deficit. Q3. Describe in detail the various approaches of forecasting exchange rates. Why is it so important to forecast exchange rates accurately? Unit 1 Explain the importance and reasons of using the services of International banking. Also Q4. Explain i i ing offices, explain the various types of International banking office us types of bonds used in the bond market internationally, QS. Discuss in detail the v Q6. Elucidate the various factors you would consider while investing in the stock markets of 5. Blucic developing countries like India, aol og Page 1 of 2 © scanned with OKEN Scannerional organizations reduce tax © scanned with OKEN ScannerUBS HONOURS SCHOOL SYSTE! M END SEMESTER EXAMINATION- NOVEMBER 2022 ind [Link] (Hons.) - III Semester International Financial Management Paper: MCH-7121 Time Allowed: 3 Hours ‘Maximum Marks: 50 Note: Attempt five questions in all, selecting at least one question from each unit. All questions carry equal marks. 10. Unit How globalization has changed the process of doing business? Explain with suitable examples in context of Indian business scen¢ “Balance of payments always balances.” Elucidate. What measure do you suggest for improving the balance of payments of a country? ‘What is meant by foreign exchange market? Discuss the structure and functions of foreign exchange market. Unit-I [Elucidate the various types of international banking offices. Briefly discuss some of the services that international banks provide to their customers. Briefly define each of the major types of international bond market instruments, Also differentiate between foreign bonds and Euro bonds. Unit-01 Distinguish between foreign exchange exposure and foreign exchange risk. Why do firms need to manage foreign exchange exposure? How would you define transaction exposure? Discuss the various methods for measuring and managing transaction exposure. 7 Elucidate the methods by which translation exposure can be measured. How is it different from economic exposure? Unit-IV What do you mean by international capital budgeting? Describe the various methods of capital budgeting that are normally adopted by MNCs. a Me es et OY Write short notes on following: 4) International capital structure and the cost of capital. b) Conporate governance around the world. loft © scanned with OKEN Scanner[Link] Sub, Code: 5066 1119 Master of Commerce (Hons.) Third Semester Time allowed: 3 Hours NOTE: Attempt five Max. Marks: 50 ‘uestions in all, selecting atleast one question from each Unit cad UNIT -1 I. The changing intemational financial system poses new challenge for financial managers in developing countries." Elaborate. (10) Hl, What do you mean by ‘Foreign Exchange Market"? Discuss the role played by the main participants in this market. (10) 1. Explain the concept of Balance of Payments (BOP), and discuss the different accounts of BOP. Can a country run a current account deficit (surplus) indefinitely? Give reasons, (10) UNIT-1 IV. _ Explain the procedure of the issue of international bonds. (10) V. Comment on the use of interest-rate swap for interest rate-risk hedging. (10) UNIT— 1 VI. Do the different methods of translation arrive at different sizes of translation exposure? Explain. (10) VII. "The only exposure that really matters is operating exposure which cannot be hedged: with efficient money and foreign exchange markets and rational investors, hedging, activities are waste of time and resources". Give reasons whether you agies vy disagree. (10) oe UNIT-1V VIII. Discuss the various methods which MNC's adopt to increase the intemational business? (10) TX, Why should the cost of capital for an MN differ from that for a domestic, im? Elucidate with examples. fe X. Enumerate the various problems and issues in foreign investment analysis. (10) Xoex © scanned with OKEN Scanner7 Cipro uu} 6 tmorne}) oM- aid Meat: 99" pxam,Code:0682 9u-N-16 Sub. Code: 5066 ue 116 [Link], (Hons) Third Semester Group ~ Il: Finance ~I MCH-7121: International Financing Management Time allowed: 3 Hours Max. Marks: 50 NOTE: Attempt five questions in all, selecting atleast one question from each Unit er UNIT=I 1. Discuss the peculiar features of Intemational Financing Management. How does the (oy changing global environment affect multinational corporations? IL. Explain in detail the European Monitory System. What improvements can you suggest in (10) this? IIL. Write notes on the following:- a) International Parity Relationships b) Globalization and MNCs (5,5) UNIT = 1V. Compare, future contracts to forward contracts. Explain the foreign currency futures (10) contracts bringing out the rationale for such contracts. Ived in international Y. Why do people invest internationally? Explain the various risks invol (10) investments. ‘UNIT - U1 VL. Discuss the various types of foreign exchange exposure? How can you manage risk in transactions involving foreign currency’? (10) tand by forward market ledge? How can it be employed? Illustrate VII. What do you unders (10) with example. rv. nal capital investment decisions differ from domestic capital Is of evaluating international investment VII. How do internatior 's? Explain the method (10) investment decision’ decisions. 1X. What do you understand by working capital management? Explain the various dimensions of international working capital management. (io) X. Write notes on the following: ) Cross border acquisitions b) Corporate ‘Governance among MNCs 65) XeEX © scanned with OKEN Scannernia q Exam,Code:0682 17 5066 M. - (Hons.) Third Semester MCH-7121; aie II: Finance I + Intemational Financial M ‘Time allowed: 3 Hours eee NOTE: Attempt five - ‘Max. Marks: 50 ipl five questions in all, selecting atleast one question from each Unit. XXX i INIT- 1. What is Internatio nal Financ Financial management? How does it compare and contrast with domestic financial management? oe I. Why does y does exchange rate not always adjust toa current account deficit? Diseuss- 0) ased on this theory, what is & II]. Explain the theory of purchasing power parity (PPP) b -s with high inflation. (10) general forecast of the values of the currencies in countries UNIT-11 between forward and future contracts? Between futures IV. What the basic differences (10) and options contracts « between basis swap and coupon est rate swap? What is the differencs (10) V. What is inter swap? unis VL Write note on:- a) Translation Exposures b) Transaction Exposure a0) yi. What marketing and production techniques can firms initiate to cope with exchange : (10) risk? nit-v the decline worldwide? How have banks responded to their vin. Why is bank lending 0” toss of market shave? ws ha of une advantages and disadvantages of having highly leveraged IK. Foreign subsidiaries? os co the threat of currency controls and the financing ne structures to make the projet less sensitive vy sensitive is the value of the project t Ho XT popiasion® How em to these litical risks’ (10) © scanned with OKEN ScannerLbremy [apie @ i: me avnnf * [Link] 118 ‘Sub, Code: 5066 Master of Commerce (Hons.) Gs Third Semester roup — Il: Finance - 1 MCH-7121: ane Time atiowed: 3 Hours ‘1: International Financial Management : . Max. Marks: 50 NOTE: Attempt five questions in all, selecting atleast one question from each Unit. er unT-I |. What are different dimensions of multinational finance? How does financial management of a foreign firm is more difficult as compared to that of a domestic firm? Explain goals of international finance. IL How is intemational monetary system different from domestic monetary system of @ country? Elaborate the affect of rising oil prices, declining exports, depreciating ) domestic currency and Donald Trump's foreign-policy on India's balance of payment position. (0) ; Il. Write short notes on:- 8) Graphical method of exchange rate forecasting ) Method of advanced indicators for forecasting exchange rates (10) c) Real interest parity count or at a premium in the forward surrency trading at dis rrency options. Also describe any two IV, What is meant by @ ¢ various types of cu market? Give example o . ; option strategies for currency market risk protection. (10) vy. Explain the following’ ) International money market bp) Eurocurrency «) International banking in PTO. © scanned with OKEN ScannerVL vu. vIn. @Q : Describe Describe the difference between foreign bonds and Eurobonds. 4 @o) Procedure for issuing Euro bond in the market. UNIT =I sp aating Discuss meaning of economic exposure and Translation exposure. Explain oe are measured and managed, ¢ Answer the following: #) What are tools of managing interest rate exposure? ») How does hedging help in currency risk management? + on. ©) Howis country risk analyzed? (10) international capital budgeting decisio, capital budgeting? How can a MNC implement leading and laggi movements? What is netting and how can it j management of a firm? we ‘Time allowe NOTE: A i te mM. © scanned with OKEN Scanner© scanned with OKEN Scanner© scanned with OKEN Scant© scanned with OKEN Scanner© scanned with OKEN Scanner