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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
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DRIVE SUMMER 2016
PROGRAM Master of Business Administration- MBA
SEMESTER 4
SUBJECT CODE &
NAME
MF0015 & INTERNATIONAL FINANCIAL MANAGEMENT
1 Explain Globalization, Advantages of Globalization and Disadvantages of
Globalization.
Explanation of globalization
Advantages of Globalization
Disadvantages of Globalization
Answer: Globalization can be defined as the process of international integration that arises
due to increasing human connectivity as well as the interchange of products, ideas and other
aspects of culture. It includes the spread and connectedness of communication, technologies
and production across the world and involves the interlacing of cultural and economic
activity. The
2 In foreign exchange market many types of transactions take place. Discuss the
meaning and role of forward, future and options market.
Forward market
Future
options
Answer: Forward Market
In the forward market, contracts are made to buy and sell currencies for future delivery, say,
after a fortnight, one month, two months and so on. The rate of exchange for the transaction
is agreed upon on the very day the deal is finalized. The rate of exchange for the transaction
is agreed upon on the very day the deal is finalized. The forward rates with varying maturity
are quoted in the newspapers and those rates form the basis of the contract. Both parties have
to abide by the
3 Explain Swap, its features and types of Swap.
Explanation of Swap
Explanation on features of swap
Types of swap
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

2. combination of a purchase with a simultaneous sale for equal amount but different dates.
Swaps are
4 Explain in detail the types of exposure and measuring economic exposure
Explanation on types of exposure
Explanation on measuring economic exposure
Answer: Types of exposure
Economic Exposure
The potential changes in all future cash flows of a firm resulting from unanticipated changes
in the exchange rates are referred to as economic exposure. The monetary assets and
liabilities, in addition to the future cash flows, get influenced by the changes in foreign
exchange rates. Of all
5 Elaborate on the tools of foreign exchange risk management and techniques of
exposure management.
Explanation of the tools of foreign exchange risk management
Explanation on the techniques of exposure management
Answer: Tools of Foreign Exchange Risk Management
• Forward contracts: A forward contract is a non-standardized contract that takes place
between two parties
6 Write short note on:
a. Adjusted present value model (APV model)
b. Economic and political risk
Answer: Adjusted Present Value Model
Debt has an advantage over equity since the interest paid on debt is almost always deductible
from income while calculating corporate taxes, which is not the case for dividends on equity.
So, the post cost of debt is less than the pretax cost of debt. Debt creates additional value for
a project. How is this so? By reducing the taxes paid, so adjustments to the calculation of the
project’s present value
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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