June, 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.
