Course Code : IBO – 06

Course Title : International Business Finance

Assignment Code : IBO – 06/TMA/2018-19

Coverage : All Blocks

Maximum Marks: 100

Attempt all the questions.

1. Discuss the main function of the IMF. Explain and compare the gold standard Bretton

woods systems. (8+12)

2. (a) Discuss the Forex Market structure in India.

(b) Evaluate the developments in the Forex Market in India? (10+10)

3. (a) Explain what kind of risks in Foreign Exchange are faced by the MNCs.

(b) Explain the mechanism of money market hedge for accounts receivables. (10+10)

4. (a) How do you think that cost of capital and capital structure are interrelated?

(b) What factors differentiate the determination of cost of capital and capital for a MNC as

compared to a domestic firm? (10+10)

5. (a) What do you understand by counter trade? Mention few circumstances where counter

trade can be beneficial for a country.

(b) “Letter of Credit makes financing of Receivables easy” – Comment.