FALL-2015
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Master of
Business Administration- MBA Semester 3
MF0015-International
Financial Management
(Book ID:
B1759)
Assignment (60 Marks)
Note: Answer
all questions must be written within 300 to 400 words each. Each Question
carries 10 marks 6 X 10=60
Q1. Discuss the goals of international financial management.
Answer. International Financial Management is a well known
term in today’s world and it is also known as international finance. It means
financial management in an international business environment. It is different
because of different currency of different countries, dissimilar political
situations, imperfect markets, diversified opportunity sets. A business
organization is organic in nature, and its successful growth depends on the
financial efficiencies of operations and strategies. Therefore, the primary
goals of
Q2.
The key component of the financial system is the money market that acts as a
fulcrum of monetary operations.
Write
down the important points under each category mentioned below.
a)
Functions performed by money market
b)
International interest rates
c)
Standardized Global Market regulations.
Answer.
a) Functions performed by money market
1. To
maintain monetary equilibrium. It means to keep a balance between the demand
for and supply of money for short term monetary transactions.
Q3. Thousands of years back the
concept of bartering between parties was prevalent, when the concept of money
had not evolved. Explain on counter trade with examples.
Answer. Trading between nations has been
happening since time began. In ancient time nations traded silk, spices, cloth
and animals of all kinds. Today nation trade food items, defense equipment,
metals, electronics etc. The products might have changed but the basic concept
is still the same as the underlining need which brings together two nations in
a trade relationship still exists. One such method of trading between nations
is called counter trade.
Q4. There are different techniques of
exposure management. One is the Managing Transaction Exposure and the other one
is the managing operating exposure. So you have to explain on both Managing
Transaction Exposure and Managing Operating Exposure.
Answer. Transaction Exposure
The risk,
faced by companies involved in international trade, those currency exchange
rates will change after the companies have already entered into financial
obligations. Such exposure to fluctuating exchange rates can lead to major
losses for firms.
Q5. Every firm is going on concern,
whether domestic or MNC.
Explain the techniques of capital
budgeting and the steps to determine cash flows.
Answer. Capital investments are long-term investments in which
the assets involved have useful lives of multiple years. For example, constructing
a new production facility and investing in machinery and equipment are capital
investments. Capital budgeting is a method of estimating the financial viability
of a capital investment over the life of the investment.
Q6. Write short note on:
a. American Depository Receipts (ADR)
b. Portfolio
Answer. a. American Depository
Receipts (ADR)
An American
depositary receipt (ADR and sometimes spelled depository) is a negotiable
security that represents securities of a non-U.S. company that trades in the U.S.
financial markets.
Shares of
many non-U.S. companies trade on U.S. stock exchanges through ADRs, which are
denominated and pay dividends in U.S. dollars and may be traded like regular
shares of stock. ADRs are also traded during U.S. trading hours, through U.S.
broker-dealers. They simplify investing in foreign securities by
FALL-2015
Get solved
assignments at nominal price of Rs.125 each.
Any issues
mail us at: subjects4u@gmail.com or contact at
08894344452
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