POST GRADUATE DIPLOMA IN INTERNATIONAL BUSINESS OPERATIONS / MASTER OF COMMERCE
IBO-06 : INTERNATIONAL BUSINESS FINANCE
Time : 3 hours Maximum Marks : 100
Note : Answer any five questions. All questions carry equal marks.
Q. 1. Explain the various DCF techniques of project appraisal. Which technique do you consider better and why?
Q. 2. What is transaction exposure? Explain any two hedging techniques of transaction exposure, giving examples.
Q. 3. What is political risk? How do multinational companies assess and manage political risk?
Q. 4. Discuss the factors that influence worldwide corporate capital structure.
Q. 5. (a) Distinguish between foward contract and forward rate agreements.
(b) How does a country’s tax policy impact foreign investments?
Q. 6. Discuss Capital Asset Pricing Model (CAPM) in relation to cost of capital.
Q. 7. (a) Explain the concept of transfer pricing. Why do transnational corporations resort to such a practice?
(b) Distinguish between Direct and Indirect exchange rate quotes. How can the exchange rate Rs. 74/US $ be quoted in indiect form?
Q. 8. What is Balance of Payment? Explain and illustrate the inter-relationship between current account, capital account and official reserve account.
Q. 9. Write explanatory notes on the following:
(a) Foreign Exchange Markets
(b) Yield Curve
(c) Euro Bonds