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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
DRIVE winter 2016
PROGRAM MBA
SEMESTER III
SUBJECT CODE &
NAME
IB0010 & INTERNATIONAL FINANCIAL
MANAGEMENT
1. Explain the difference between International Financial Management and
Domestic Financial Management? Discuss the goals of international financial
management?
Difference between international financial management and domestic financial
management.
Goals of international financial management
Answer: Difference between international financial management and domestic
financial management
• Foreignexchange risks: The foreign exchange risks states the fluctuation or variation
in the prices of currency which
•
2. Explain the advantages and disadvantages of fixed and floating rates systems?
Discuss foreign exchange transactions?
Explain advantages and disadvantages of floating rate systems.
Meaning, types
Answer: Advantages of fixed rates system
1. The system provides exchange rates stability by eliminating uncertainty.
2. Volatility of exchange rate is controlled as it insulates the economy from external
disturbances.
3. Foreign investors are encouraged to invest in countries without the fear of exchange
rate fluctuations.
4. Poorer nations could get foreign exchange for development purposes at low costs.

2. Disadvantages of fixed rates system
1. The system required regular
3. Explain the concept of Swap. Write down its features and various types of
interest rate swap.
[Introduction of Swap-2
Features of swap-4
Various types of interest rate swap-4]
Answer: Swap is an agreement between two or more parties to exchange sets of cash
flows over a period in future. The parties that agree to swap are known as counter
parties. It is a combination of a purchase with a simultaneous sale for equal amount but
different dates. Swaps are used by corporate houses and banks as an innovating
financing instrument that decreases borrowing costs and increases control over other
financial
4. Elaborate on meaning offoreignexchange exposure. Explain the types of foreign
exposure.
Meaning of foreign exchange exposure
Explain the types of foreign exposure
Answer: The foreign exchange exposure of a firm can be defined as a measure of the
sensitivity of its cash flows to changes in exchange rates. Due to the difficulty of
measuring cash flows, exposure is examined by most of the researchers through the
study of how a firm’s market value responds to the changes in the exchange rates. The
value of a currency in a floating exchange-rate regime changes frequently and
5. Write short notes on:
International Credit Markets
International Bond Markets
[International Credit Markets-5
International Bond Markets-5]
Answer: a) International Credit Markets
International credit markets are the forum where companies and governments can obtain
credit (loans in various forms) from the creditors/investors. These markets are an
important part of international capital markets. International capital market is that
financial market or world financial centre where shares, bonds, debentures, currencies,
mutual funds and other long term securities are purchased and sold. These markets
provide the opportunity for international companies and investors to deal in shares and
bonds of different companies from various countries. Syndicated Loans: Syndicated
loans are credits granted by a group of banks, c

3. 6. Country riskis the riskof investing in a country, where a change inthe business
environment adversely affects the profit or the value of the assets in a specific
country. Explain the country risk factors and assessment of risk factors.
[Introduction of country risk factors-5
Explanation of assessment of risk factors-5]
Answer: Country Risk Factors
We can define country risk as the risk of losing money due to changes that can occur in
a country’s government or regulatory environment. The most common examples are
acts of war, civil wars, terrorism and military coups, etc. It comes in various forms: for
example, change in the government of a country, a new president or prime minister,
some new laws, a ruling party becoming minority, and so on. Such changes do impact
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