REVIEW QUESTIONS-MGT-223 -INTERNTIONAL FINANCIAL

MANAGEMENT- BBA V SEM

1. What is the difference between international finance and domestic finance?

2. What is the difference between balance of trade and international fianc/?
3. Discuss the sources of international finance.
4. What is international financial management?
5. Define ethnocentric firms.
6. Explain parallel loan?
7. What is meant by balance of payments?
8. What do you mean by consolidated net transaction exposure?
9. Distinguish between direct quote and indirect quote of exchange rate.
10. State any three reasons in support of statement that IFM has wider scope than
domestic finance.
11. Distinguish between current account and capital account.
12. Distinguish between multilateral corporations and transnational corporations
13. Examine the monetary approach to balance of payment adjustment.
14. How do you hedge the real hedge options?
15. Explain Euro issues by Indian companies in detail, with suitable examples.
16. What is the procedure for issuing international bonds?
17. What are the techniques adopted for natural hedge?
18. How do you arrive at the amount of real operating exposure?
19. Explain polycentric firms.
20. Elaborate the internal techniques of exposure management with suitable examples.
21. What is the difference between cash conversion cycle and operating cycle of a MNC?
22. What is meant by international working capital management? What is the difference
between domestic WCM and international WCM?
23. State any 3 factors leading to fast strides in international financial function.
24. Enumerate the global financial market instruments with suitable examples.
25. Explain the different modes of international modes of international business.
26. Explain the meaning and importance of derivatives.
27. What is geocentric firms.
28. Differentiate between Euro bonds and foreign bonds.
29. What is the difference between hedging and speculation?
30. Explain the advantages and disadvantages of FDI.
31. Explain the significance of Net Present Value.
32. Explain how MNC companies can use futures contact to hedge their foreign exchange
risk?
33. Explain the various types of country specific risks to be considered while going for
international business?
34. Define options and explain how options contract can be used to minimize exchange
rate risk from the perspective of an exporter and importer.
35. In London, Barclays bank quoted GBP/USD 1.3792/1.3841 and INR/GBP:
0.01055/61 HDFC bank in India quotes: SD/INR 67.6855/7615.
I. Calculate the implied USD/INR rate in London?
II. Is there any arbitrage opportunity? How did you find?
 III. If there is an arbitrage opportunity how can you make such profit and
how much is the profit?
36. Explain Green Field Investment
37. Distinguish between Current Account and Capital Acount.
38. What is an Statistical Discrepancy.
39. Write the features of FDI.
40. Explain Fixed party System.
41. Write short notes on EXIM.
42. Distinguish between Nominal rate and real rate.
43. Explain Foreign exchange market?
44. What is bid-ask spread? How is it computed?
45. Explain the features of letter of credit.
46. Explain the term Balance of Payments
47. A. Suppose the spot ask exchange rate, Sa($|), is $2.10 = 1.00 and the spot bid
exchange rate, Sb($|), is $2.07 = 1.00. If you were to buy $5,000,000 worth of
British pounds and then sell them five minutes later without the bid or ask changing,
how much of your $5,000,000 would be "eaten" by the bid-ask spread?

B. The dollar-euro exchange rate is $1.5968 = 1.00 and the dollar-yen exchange rate
is 108.0030 = $1.00. What is the euro-yen (/) cross rate?

48. How does balance of payment accounting establish a link between national economy
and international activities.
49. Discuss the nature and Scope of intenational financial decisions.
50. Explain the criteria followed while raising funds from international financial market.