Define the following terms: (14) (1) Globalization (2) Interest rate parity (3) Arbitrage (4)Transaction Exposure (5) International Finance (6) Balance of payment (7) Economic Exposure Q.2 (A) Discuss factors affecting Globalization in detail. (07) (B) Write a short note on WTO. (07)
[ marks](B) Write a short note on various types of letter of credit. (07) Q.3 (A) Discuss the different ways political events in a host country may affect local operations of MNC. (07) (B) Write a short note on Classical Gold Standard. (07)
[ marks]Q.3 (A) What is INCOTERMS? Explain any three INCOTERMS of your choice. (07) (B) Write a short note on ECGC. (07) Q.4 (A) Write on FCA, FAS and FOB. (07) (B) Explain various types of International Banks in detail. (07)
[ marks]Q.4 (A) Define Exposure, write a note on three types of exposures in brief. (07) (B) Write a short note on EXIM Bank. (07) Q:-5 Find out the Transaction gain/loss on the basis of the following data (14) pertaining to India’s foreign Trade. Particulars US $ Million JapanYen British Pound Million Million Imports 1400 800 950 Exports 1200 820 1000 Pre Exchange Rate RS.50/$ Rs.0.40/Yen Rs. 80/Pound Post Exchange Rate RS.40/$ Rs.0.50/Yen Rs. 75/Pound Page 1 of
[2 marks]Q:-5 Acompany expects cash flow from its new project to the extent of $4500, (14) $5000, $6000 and $ 6500 respectively during first three years of operation. However, due to changes in exchange rates, the cash flow is affected and it will change to $ 5500, $6800, $ 7500 and $ 8500. Find the magnitude of the possible real operating exposure during the initial of operation assuming a discount rate of 15%. Page 2 of
[2 marks]