C & CB

60:40

TILAK MAHARASHTRA VIDYAPEETH, PUNE

MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
EXAMINATION : NOVEMBER- 2018
THIRD SEMESTER
Sub: International Financial Management (MFM-15303)
Date : 22/11/2018 Total marks: 60 Time: 2.00 pm to 4.30 pm
SECTION – I
Q. 1. Fill in the blanks. (5)
1. If diversity is property managed in MNC, helps to reduce fluctuations in their earnings.
a) True b) False
2. When a group of countries agree to use a common currency it is a ______________.
a) hybrid mechanism b) monetary union
c) the gold standard d) None of these
3. Currency future price have a cash and carry relationship with ___________ exchange
rates.
a) spot b) future
c) forward d) None of these
4. Devaluation raises export price in the home currency.
a) True b) False
5. Under deemed exports goods do not leave the country.
a) True b) False
Q. 2. Answer the following. (Any Two) (20)
1. Define fixed rate and floating rate system.
2. Explain various aspects of purchasing power parity theory.
3. Explain in detail receivable management process.
4. Explain various types of import license.
Q. 3. Write notes on. (Any Two) (10)
1. Option forward.
2. Deemed exports.
3. Financing duty drawback.
SECTION – II
Q. 4. Case Study (15)
Mr. Raju has recently joined as a financial manager of MNC. He is supposed to control
inventory function of the company. Company is currently facing problems of inventory
stock piling. Company’s manufacturing functions are located in Delhi and having its
branches throughout the World.
Please guide Mr. Raju in terms of production location system and inventory stockpiling
in the company.
Q. 5. Answer the following: (10)
a) By using CAPM model , solve the following example
Risk free rate of return(Rf)= 8%
Market rate of return(Rm) =12%
Beta of the security (B) = 1.02
Find out Expected Rate of Return (Re)
OR
b) Write a detailed note on Software exports.

International Financial Management (MFM-15303) AHD / I 1/2