Summer 2013

Master of Business Administration- MBA Semester 4 MF0015/MBF 404/ IB0010 International Financial Management - 4 Credits
(Book ID: B1759)

Assignment- 60marks
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q1.

Globalization is a process of international integration that arises due to increasing human connectivity as well as the interchange of products, ideas and other aspects of culture. Give brief introduction of globalization and identify its advantages and disadvantages. (Introduction of globalization 2marks; Advantages of globalization 4marks; Disadvantages of globalization 4marks)

10 marks

Q2.

Foreign exchange markets, where money in one currency is exchanged for 10 marks another. Write the history of foreign exchange. Explain the fixed and floating rates and the advantages and disadvantages of fixed rates system. (History of foreign exchange 5marks; Explanation on fixed and floating rates 2marks ; Advantages and disadvantages of fixed rates system 3marks)

Q3.

Swap is an agreement between two or more parties to exchange sets of cash 10 marks flows over a period in future. What do you understand by swap? Explain its features, kinds of swap and various types of interest rates swap. (Meaning of swap 2 marks; Features of swap 3marks; Kinds of swap 2marks; Various types of interest rate swap 3marks)

Q4.

International credit markets are the forum where companies and governments 10 marks can obtain credit. Bring out your understanding on international credit markets and explain the two very important aspects of international credit market. Refer and give one example. (Introduction of international credit market 2marks; Explanation of syndicated loans with example 4marks; Explanation of External Commercial Borrowings (ECB)4marks)

Q5.

Cost of capital is the minimum rate of return required by a firm on its 10 marks investment in order to provide the rate of return by its suppliers of capital.

Summer 2013

Describe the cost of capital across countries. (Introduction and explanation of effect of country difference in the cost of debt 4marks; Explanation on country differences in cost of equity 2marks; Explanation on examining debt and equity cost together 2marks; Explanation on estimating the cost of capital 2marks)
Q6.

Explain the principles of taxation and double taxation. Give some important 10 Marks points on tax havens and its types. (Explanation on principles of taxation 4marks; Explanation on double taxation 2marks; Explanation on tax havens and its types 4marks)