MNo. HS-540/ 72 B.Tech/Odd Sem (R)/2018-19 2018-19 INTERNATIONAL BUSINESS AND FINANCIAL MANAGEMENT HS - 540 Time ~ 3 Hours Full Marks ~ 70 Answer any Seven of the following questions 7x10=70 1. Examine the basis of trade in terms of Absolute Advantage theory and in terms of Comparative ‘Advantage theory. Explain the theorem in terms of opportunity cost approach diagrammatically. 2. Examine how trade is determined under more than two commodities. Explain Hechscher-Ohlin theorem by using physical definition of factor abundance. 3. Distinguish between the static and dynamic gains from trade and examine the effect of technical progress on the gains from trade, and also possibility of gains from trade in case of factor immobilities. 4. Explain the different effects of Tariff and how does Quota differ from tariff. Which one is more effective for the developing countries like India? 5. Exmine the interdependence of the two countries in case of an open economy. Examine how an increase in autonomous export of one country influence the national income of the two trading countries. 6. Explain different componenets of Balance of Payment. Explain the effectiveness of devaluation in correcting the deficit in Balance of Payment. 7. Explain the process of determination of the rate of exchange under Gold Exchange Standard and under free market mechanism. Examine the logic behind the recent depreciation of Indian Rupee against Dollar, explaining the major sources of demand for and supply of Dollar. 8, Expalin the process of emergence of globalization and India’s entry into the process. 9. (a) Suppose that a company’s current divedent now is Rs. 3.48 per share. Its dividend is expected to gorw by 15% for three years and then at a rate of 8% in definitely. The capitalization rate is 12%. How much you will be willing to pay for this share today? 0) (b) The current market price of the share is Rs. 550 and the current dividend is Rs. 10 and if the growth rate of dividend is 8%, calculate the cost of equity using dividend growth model. )