IBO-06 Question Bank (3)
IBO-06 Question bank, International Business Finance
ibo-06 solved m.com paper
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comPOST GRADUATE DIPLOMA IN
INTERNATIONAL BUSINESS
OPERATIONS / MASTER OF COMMERCE
Term-End Examination
December, 2014
IB0-06 : INTERNATIONAL BUSINESS FINANCE
Time : 3 hours Maximum Marks : 100
Weightage : 70%
Note : Attempt any five questions. All questions carry equal
marks.
1. Explain the concepts of 'Balance of Trade' and 'Balance of Payments', with the help of specific illustrations.
2. "A change in the exchange rate can result in three different exposures for a company : translation exposure, transaction exposure and economic exposure". Explain the mechanism with suitable illustrations.
3. Explain the international money transfer mechanism.
4. Discuss the broad features of international monetary system, highlighting the role of international monetary system.
5. Explain the concept of Foreign Direct Investment. While explaining briefly the policy framework adopted in India, suggest change(s) in the policy in view of the prevailing crisis in country's balance of payments.
6. Explain the CAPM model in relation to cost of capital.
7. One of the major concerns for multinationals intending to invest in other countries is the assessment and measurement of political risks. How do the multinationals do it ? Explain.
8. Distinguish, with examples between :
(a) Currency Swaps and Interest Rate Swaps.
(b) Factoring and Forfeiting
9. Write short notes on any two of the following :
(a) Exchange Rate Forecasting
(b) Purchasing Power Parity
(c) Loan Syndication Process
(d) Yield Curve
IBO-06 December, 2012 International Business Finance
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comDecember, 2012
IBO-06 : International Business Finance
1. What are the salient features of the present day International Monetary System ? Critically examine their suitability from the view point of developing countries.
2. Discuss the concept of disequilibrium in balance of payments. What are the measures usually adopted to restore the equilibrium ? Explain.
3. Write a note on organization and structure of Foreign Exchange Markets in
4. What is Transaction Exposure ? Name the different methods of hedging transaction exposure and explain in detail any one of them.
5. Explain the concept of Transfer Pricing. Why do the TNCs resort to such a practice and why are the governments against it ? Discuss in detail.
6. Explain the CAPM model in relation to cost of capital.
7. What is involved in assessment and management of political risks ? Discuss adopting a step by step approach.
8. Differentiate between :
(a) (i) balance of trade and balance of payments.
(ii) Spot and forward rates.
(b) Purchasing Power Parity theory and Interest Rate Parity theory.
9. Write short notes on any Two of the following :
(a) Special Drawing Rights
(b) Currency Options
(c) International Development Association
(d) Counter trade
IBO-06 June, 2013 International Business Finance
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comJune, 2013
IBO-06 : International Business Finance
1. "Devaluation is the most effective remedy for correcting an adverse balance of payments position" Critically examine this statement .
2. Discuss the rationale of Regional financial institutions. Have they succeeded in achieving their objects ? Explain the working of any one of them.
3. What are the 'Foreign Exchange Markets', their participants and the roles they perform ?
4. How does tax policy impact foreign investments ? Do accounting practices of countries have any influence on it ? Discuss.
5. Under each of the following scenario, whether the value of rupee in relation to apanese Yen will appreciate, depreciate or remain the same ? Assume exchange rates are free to vary and other factors remain constant.
(a) Growth rate of national income is higher in
(b) Inflation in
(c) Prices in
(d) Real interest rates in
(e)
6. Define yield curve. How is it constructed ? How does interest rate risk influence the yield curve ?
7. Appraisal of international projects is more complex than the domestic projects. Do you agree with the statement. If so ? If not, why not ? Give reasons supports by illustrations.
8. Distinguish between :
(a) Translation and Transaction currency risks
(b) Forward contract and Forward Rate Agreements
OR
Future of options.
9. Write short notes on any two of the following :
(a) Transfer Pricing
(b) Economic Exposure
(c) Forfeiting
(d) Pre-shipment Credit.
