MS-45 International Financial Management Sample Paper

MBA - Master of Business Administration

Note: Answer any five questions.

1. Briefly discuss why international trade take place. Do factors affecting international trade also affect international capital movements? Explain.

2. a) Minimization of global tax liability is not the only objective of transfer pricing. Discuss.

b) Discuss briefly the different types of letters of credit that are used in international trade.

3. a) What do you mean by the Law of one price? Do you agree with this law?

b) What is buyers credit? Discuss the circumstances under which such credit may be necessary.

4. a) Discuss some of the basic consideration thata re kept in mind while making international decisions.

b) What is portfolio investment? What factors drive investors to go in for portfolio investment?

5. a) Discuss briefly th Euro currency debt market.

b) Discuss briefly the techniques available for currency risk management.

6 a) Why is international cash management necessary? When is centralized cash management more useful as compared to decentralized cash management?

b) Explain the method of financing the export trade through bills of exchange.

7. a) What techniques may be adapted to forecast exchange rates? What are their limitations?

b) Write a note on accounting exposure.