International Financial Management - 5022 Words

EXAMINATION PAPER OF INTERNATIONAL FINANCIAL MANAGEMENT Section A: Objective type Part One: 1). Foreign exchange market in India is relatively very Answer: b). Small 2). Balance of payment is a systematic record of all ___________ during a given period of time. Answer: c). Economic Transactions 3). Merchandise trade balance, services balance balance on unilateral transfer are the part of _________ account. Answer: a). Current Account 4). Interest rate swaps can be explained as an agreement between ___________ parties Answer: b). Two 5). Capital account convertibility in India evolved in August Answer: c).1994 6). Interest rate parity is an economic concept, expressed as a basic algebraic identity that relates Answer: b).†¦show more content†¦This led to the devaluation of national currencies and a decline in world trade. This breakdown in international monetary cooperation created a need for oversight. The representatives of 45 governments met in the Mount Washington Hotel in the area of Bretton Woods, New Hampshire in the United States, and agreed on a framework for international economic cooperation to establish post-World War II. The participating countries were concerned with the rebuilding of Europe and the global economic system after the war. During 1940, Harry Dexter and John Maynard Keynes put forward proposals for a system that would encourage the unrestricted conversion of one currency into another, establish a clear and un equivocal value for each currency and eliminate restrictions and practices such as competitive devaluations. After much negotiations in the difficult wartime conditions, the international community accepted the system and an organization was formed to it. Members Administration The IMF began operations in Washington DC in May 1943. It then had 39 members. Presently the members of the IMF are 188. Any country may apply to be a part of the IMF. Post-IMF formation, in the early postwar period, rules for IMF membership were left relatively loose. Members needed to make periodic membership payments towards their quota, to refrain from currency restrictions unless granted IMF permission, to abide by the Code of Conduct in the IMFShow MoreRelatedInternational Financial Management5028 Words   |  21 PagesEXAMINATION PAPER OF INTERNATIONAL FINANCIAL MANAGEMENT Section A: Objective type Part One: 1). Foreign exchange market in India is relatively very Answer: b). Small 2). Balance of payment is a systematic record of all ___________ during a given period of time. Answer: c). Economic Transactions 3). Merchandise trade balance, services balance balance on unilateral transfer are the part of _________ account. Answer: a). Current Account 4). Interest rate swaps can be explainedRead MoreInternational Financial Management9731 Words   |  39 Pagesinflow of foreign currency. a. True b. False ANS: T PTS: 1 93. Forward contracts are the best technique for managing exposure arising from project bidding. a. True b. False ANS: F PTS: 1 94. The currency futures markets are regulated by the International Monetary Fund. a. True b. False ANS: F PTS: 1 95. It is possible to have an opportunity loss when using futures to hedge. a. True b. False ANS: T PTS: 1 96. Margin is used in the forward market to mitigate default risk. a. True b. False ANS:Read MoreMicrosofts International Financial Management: An Analysis1234 Words   |  5 Pagesand innovation. This is a sign of how the firm has established a large international presence around the globe. (Microsoft, 2013) (Fact about Microsoft, 2013) To fully understand what is happening requires focusing on the way the investment banking process assisted them, the regulatory bodies affecting their decisions and identifying / evaluating contemporary issues they are dealing with in international financial management. Together, these elements will highlight how the company was able toRead MoreAs Assessment of Financial Management in International Business2698 Words   |  11 Pagesoperating of financial management in different nations impacts investment decisions with multinational enterprise. Paper describes financial options available to the foreign subsidiary of the multiple enterprises and shows how money management in international business can be used to minimize cash balances, and taxation and introduce us to basic methods of money management. This project is focusing on financial management in the international business, discussing three sets financial decisions suchRead MoreWhy Is It Important For Study International Financial Management?1928 Words   |  8 PagesWhy is it important to study international financial management? In our globalized world, it is crucial for the international companies understand the complexity of the international financial management that shape the size and the rank of each multinational company in a very aggressive competitive market. 2. How is international financial management different from domestic financial management? International finance treats the financial movements on the global scale, while the domestic finance focusesRead MoreInternational Financial Management : Maple Leaf Inc.1831 Words   |  8 Pages INTERNATIONAL FINANCIAL MANAGEMENT MAPLE LEAF INC. INSTRUCTOR: PROFESSOR RAYMOND COX GROUP HEDGER INC SUNKANMI ODUFUWA JERALD ZAKALL Maple Leaf Inc. Method 1 - Unhedged Cross Exchange Rate (Risky) (GBP) 30,000,000 = (GBP)30,000,000 x 1.762(USD/GBP) = (USD)52,860,000 (T=0) (GBP) 30,000,000 xRead MoreEssay about International Financial Management: Key Answers606 Words   |  3 Pageslarge agency problems. 2. Comparative Advantage. a. Explain how the theory of comparative advantage relates to the need for international business. ANSWER: The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. Consequently, there is a need for international business. b. Explain how the product cycle theory relates to the growth of an MNC. ANSWER: The product cycle theory suggestsRead MoreThe International Financial Reporting Standards1487 Words   |  6 Pages This report aims to provide the executive directors and senior level management, of Fujitsu with a condensed insight into the potential use of the International Financial Reporting Standards (IFRS), as a substitute method of â€Å"corporate disclosure to its’ current reporting standards (GAAP)†, (American Institute of Certified Public Accountants, 2014). This report will analyse the primary benefits and limitations of adopting the IFRS as one of many accounting standards, thus ultimately aiming to provideRead MoreU.s. Accounting Practices Can Cause Complications1060 Words   |  5 PagesUnion and around the world claim that had the U.S. followed International Financial Reporting Standards, instead of U.S. GAAP, these debacles might never had happened. For many years, the accounting profession had faced several challenges developing a set of guidelines that would be generally accepted and universally practiced around the globe. In more recent years, more than 100 count ries around the world, have adopted International Financial Reporting Standards in order to settle on a common worldwideRead MoreInternational Accounting Standards Board ( Iasb )1543 Words   |  7 PagesInternational Accounting Standards Board (IASB) The international Accounting Standards Board (IASB) is an independent, private sector that develops and approves the body of the International Financial Reporting Standards (IFRS). The IASB manages and controls the IFRS foundation. The IASB has a group of 14 members who operates and manages the IFRS through daily meetings, community engagements, and speeches about the IFRS. These members are experts in accounting standards, preparing, auditing, financial