This document provides information about an assignment for SMU's BBA Spring 2014 semester. It includes 6 questions related to international finance and business topics. Students are instructed to answer all questions, with 10-mark questions being around 400 words each. The questions cover topics like international finance benefits and globalization costs/benefits, balance of payments, foreign exchange markets, letters of credit, foreign direct investment, and differences between GATT and WTO. Students are given contact information to obtain fully solved assignments.

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ASSIGNMENT
DRIVE FALL Spring 2014
PROGRAM Bachelors of Business Administration- BBA
SUBJECT CODE & NAME BBA 602- Management Development and Skiils
SEMESTER 6
BK ID B1905
CREDITS 4
MARKS 60
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.
1 Give introduction to international finance. Explain the benefits, scope of international finance.
List the advantages and disadvantages of globalization.
Answer : International finance is the branch of financial economics broadly concerned with
monetary and macroeconomic interrelations between two or more countries. International finance
examines the dynamics of the global financial system, international monetary systems, balance of
payments, exchange rates, foreign direct investment, and how these topics relate to international
trade.
2 Write short note on:
 Balance of Payment
 Current account
 Capital account
 Foreign exchange reserves
 Accounting equilibrium
Answer : Balance of Payment : Balance of Payments is the record of a country’s transactions with
the rest of the world. Terms like trade surplus and deficit are used to describe if the country has
more or exports than imports or imports than exports. More specifically, a country has trade surplus
if value of exports exceed that of imports. A country has trade deficit if the value of its exports falls
short of the value of its imports. US has been
3 Give introduction on foreign exchange. Explain on foreign exchange markets and role of
international forex markets.

2. Answer : Foreign Exchange
The exchange of one currency for another, or the conversion of one currency into another currency.
Foreign exchange also refers to the global market where currencies are traded virtually around-the-
clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX."
4 Explain cash-in-advance and write the process of issuing letter of credit and different types of
letter of credit.
Answer : Cash in Advance
The cash-in-advance constraint (sometimes known as the Clower constraint after American
economist Robert Clower)[1] is an idea used in economic theory to capture monetary phenomena.
In the most basic economic models (such as the Walras model or the Arrow–Debreu model) there is
no role for money, as these models are not sufficiently detailed to consider how people pay for
goods, other than to say everyone has a budget constraint. To be able to say anything about the
money supply, inflation monetary policy and so on
5 Explain the Foreign Direct Investment (FDI). Give the comparison between American Depository
Receipt (ADR) and Global Depository Receipt (GDR). Write the categories for trade blocs.
Answer : Foreign direct investment (FDI) is defined as a company from one country making a
physical investment into building a factory in another country. It is the establishment of an
enterprise by a foreigner. FDI includes investments made to acquire lasting interest in enterprises
operating outside of the economy of the investor. FDI relationship consists of a parent enterprise
and a foreign affiliate which together form an
6 Write down the differences between GATT and WTO. Explain the problems and achievements of
GATT & WTO.
Answer: Difference between WTO and GATT:-
The World Trade Organization is not a simple extension of GATT; on the contrary, it completely
replaces its predecessor and has a very different character. Among the principal differences are the
following:
The GATT was a set of rules, a multilateral agreement, with no institutional foundation, only a small
associated secretariat which had its origins in the attempt to establish an International Trade
Organization in the 1940s. The WTO is a permanent
Dear students get fully solved SMU BBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601