MS-45 All Questions carry equal marks. Attempt any five questions. 1.) How do MNCs come in to existence?

What steps an MNC may follow in becoming global? Discus the trends in the World Economy and how it has accelerated globalization of Corporations (Companies), with suitable examples. 2.) What additional risks an International Finance Manager face compared to a Finance Manager engaged only in domestic business? And discuss briefly the tools he can use to meet those challenges. 3.) What are the important Theories on International Trade? Discuss them briefly. 4.) Discuss briefly the different kinds of international financial flows? Briefly discuss the changes it had after the opening up / LPG moves. 5.) What is balance of payment and balance of trade? How are they different and how are they related? India never had, after independence, a favorable balance of trade. You agree or disagree? Discuss it briefly. 6.) Describe in brief who the major players / participants in the foreign exchange market are. Discuss their roles. What purpose foreign exchange markets serve? 7.) What do you mean by exchange rate? Explain the following terms used in Foreign exchange with suitable examples: Direct quotes, Indirect quotes, Spot rates, Forward rates, Cross rates. Premium, Discount. 8.) What is Foreign Exchange Reserve? Is it in any way related to the exchange rates, and if so how? Discuss it with special reference to India. 9.) Discuss briefly Currency Futures, Options and Swaps as used in Foreign Exchange parlance, with suitable examples. 10.) What do you understand by the terms, Transaction exposures, Translation exposures and Economic exposures? Explain how they make the international business scenario more complex with suitable examples and how they can be managed best. 11.) Discuss the various Taxation issues involved in international business and describe how MNCs take advantage of it. What do you understand by DTAT (Double Taxation Avoidance Treaty)?

12.) What is FEMA? How it is different from the earlier legislations existed in the areas of foreign exchange regulations in the country? Do you really feel, FEMA is zeist-geist, meaning spirit of the time and if so, why? 13.) Raising funds globally is easier now. Do you agree? Why? Discuss briefly the terms, DRs, GDRs, ADRs, FCCBs. How are they similar and yet different? 14.) What do you understand by the term, Letters of Credit. What is the use of LCs. Discuss the different parties involved in Letters of Credit? Also briefly explain the different types of LCs. 15.) Discuss the role of Export-Import Bank of India (EXIM Bank) in export financing, export services and promotional activities during the last two decades. 16.) Discuss the role of Export Credit Guarantee Corporation (ECGC) in helping the exporters in India to develop their business during the last two decades. 17.) Discuss the various issues determining the cost of capital for multinational corporations, vis--vis domestic companies, with special reference to India. 18.) How is capital budgeting for multinational corporations different from domestic companies? Discuss the additional risks involved in capital budgeting of an MNC. 19.) How is working capital management in domestic companies and multinational enterprises different? Discuss some of the additional care and precautions needed in managing the working capital of an MNC. 20.) What do you understand by FDI? Discuss how it is different from FII. Elucidate the trends of FDI to India during the last two decades. 21.) What do you understand by FII? Discuss how it is different from FDI. Elucidate the trends of FII to India during the last two decades. 22.) What are the factors motivating the flows of FDI and FII? Discuss the trend with special reference to India and comment on this with special reference to India. 23.) What do you mean by International Portfolio Investment? Explain the benefits of it to the investors are and discuss the barriers to international diversifications of portfolios. 24.) Write short notes on any three of the following: a) PPP b) H-O-S Theory c) IMF d) SDR e) BoP f) ECB

25.) Write short notes on any three of the following: a) Bretton Woods Agreement (1944) b) Tariffs c) Snake in the tunnel d) Crawling Peg e) Current Account f) Arbitrage