1. What is International Financial Architecture? Compare and contrast the Comparative
Advantage Theory and Comparative Cost Theory.
2. Explain the Purchasing Power Parity Theory with the help of an example. Can there be
deviations also from Purchasing Power Parity relationship? If so, what factors are
responsible for the same?
3. What do you understand by Exchange Rate Exposures? Describe different types of
exchange rate exposures and the techniques used to manage them.
4. Why is Cost of Capital different across countries? Explain how does the Cost of Capital for MNCs differ from that for domestic firms.
5. Discuss the factors that stimulates FDI in a country. Explain the influence of taxation
policy of host country on FDI