MS045 International Financial Management IGNOU exam question paper

MS-045: International Financial Management last 3 yrs paper

What do you understand by ‘equilibrium’, ‘disequilibrium’ and ‘adjustment’ in the context of Balance of Payments? Discuss the various approaches used to explain process of ‘Adjustment
Explain the Bretton woods exchange rate system and discuss the causes of its collapse. Describe the present system of exchange rates determination around the globe
What is ‘Interest Rate Parity Relationship’? Describe its applications and discuss the reasons for deviations from this relationship.
What are ‘Currency Options’? Discuss the factors that determine the premium/price of an option. Describe the profit profile of the buyer and seller of put and call options respectively.
What are External Commercial Borrowings? Who are eligible borrowers recognised under the approval route? What are other compliance requirements for accessing such borrowings under the approval route?
Describe the various types of export credit facilities available to the exporters in India. Discuss the role of letters of credit in this regard
How is domestic working capital management different from multinational working capital management? Describe the techniques used for optimising cash flows. What are the complexities associated with it?
What is Foreign Direct Investment (FDI)? Discuss the factors which motivate FDI. What subsequent decisions are taken by investors after making such investment and why? Discuss.

Briefly describe the well known theories of International Trade and discuss in detail the Comparative Cost theory and the Modern theory of International Trade.
What are the main features of the exchange rate regime that was designed at Bretton Woods? Discuss the different options available under the Fixed exchange rate system and Floating exchange rate system.
What do you understand by Forward Market? Describe the special features of a forward contract and explain Arbitrage in forward market giving suitable examples
What do you understand by Exchange Rate Exposures? Describe the different types of exchange rate exposures and the techniques adopted to manage them.
Discuss the different types of Export Credit granted by banks. What is the role of Letter of Credit in this regard? Explain the procedure of negotiation of bills under Letter of Credit.
Why is the Cost of capital important for a firm? Explain the reasons for variations in the cost of capital across different countries.
In what respects does International capital budgeting differ from Domestic capital budgeting? Describe the various issues which arise in International capital budgeting.
How is the working capital management in multinational firms different from that of domestic enterprises? Discuss the transactions under intra-corporate transfer of funds and variables which influence such transfers.

What is International Financial Architecture? Discuss the origin of developing countries debt crisis and analyse the East Asian Crisis (1997).
Describe the different kinds of international financial flows and comment on the structure of balance of payments. What are the basic principles governing recording to these flows?
What are currency options? Describe the various currency option strategies and explain the profit profile of these strategies.
What is Transaction Exposure? Discuss the major internal techniques used for management of transaction exposure.
Explain the various lending programmes of Export-Import Bank of India for exporters. What are the facilities provided by it for commercial banks and overseas entities? Discuss the meaning and role of guarantee facility and forfeiting service provided by it.
Why is cost of capital different across countries? Describe the factors contributing to differences in the risk free rate and the risk premium across countries.
What are the major problems faced by MNCs in managing cash? Describe the techniques through which cash flows can be optimized. What complications arise during optimization of cash flows?
Explain the concept and importance of international diversification and benefits as compared to domestic investment. Describe some of the barriers to international portfolio diversification.

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