Explain the following terms
[14 marks]Nominal Exchange rate
[ marks]LIBOR
[ marks]Hedging
[ marks]LERMS
[ marks]Translation Exposure
[ marks]Eurocurrency market
[ marks]Foreign Direct Investment
[ marks]What do you mean by Globalization? Also explain the factors affecting Globalization.
[7 marks]What is letter of credit? Discuss its mechanism with diagram.
[7 marks]What is Forward contract? Discuss its benefits.
[7 marks]Write a short note on Classical Gold Standard.
[7 marks]Write a short note on ECGC.
[7 marks]Explain how Special drawing rights (SDR) are constructed? Also discuss circumstances under which SDR was created.
[7 marks]Briefly discuss the various types of international banking offices.
[7 marks]Write a short note on EXIM Bank .
[7 marks]Define Balance of payment, discuss various components of BPO and comment on India’s current BPO position.
[7 marks]Write a Note on ADR and GDR.
[7 marks]What is meaning of exposure? Explain types of exposure. Page 1 of
[2 marks]Kanha Ltd. provides following details regarding their business. Liabilities Amount (Rs. Assets Amount (Rs. Million) Million) Current 400 Cash 100 liabilities Share capital 1000 Marketable 100 securities Bonds 600 Debtors 200 Retained 400 Inventory 300 earnings Land & 600 Building Plant & 800 machinery Furniture & 300 Fixtures Historical rate = Rs.40/ $ and Current rate= Rs.46/$
[ marks]From the above balance sheet of Kanha Ltd., Calculate 0 translation exposure of firm by using Current-non current method
[7 marks]From the above balance sheet of Kanha Ltd., Calculate translation exposure of firm by using Temporal method
[7 marks]From the above balance sheet of Kanha Ltd., Calculate translation exposure of firm by using Current-non current method if current rate is Rs.50/$
[7 marks]Temporal method if current rate is Rs.50/$ Page 2 of
[2 marks]