INTERNATIONAL FINANCE

Final answer sheet

Chapter – 1
Q.1 What is the scope of International finance ?
Ans.- in short - https://www.wallstreetmojo.com/international-finance/
https://slideplayer.com/slide/12395849/#:~:text=3%20MEANING
%20%26%20SCOPE%20International%20finance,corporations%20in%20dealing
%20with%20cross
extra - https://graduateway.com/scope-of-international-finance/

Q.2 What are the various factors affecting Foreign Exchange Rates?
Ans. Ppt chapter 1 page No. 42 to 47
https://www.compareremit.com/money-transfer-guide/key-factors-affecting-currency-
exchange-rates/

Q.3 Explain the role and responsibilities of IMF.

Ans. Ppt chapter 1 page no 12 to 17 and IMF & word bank word file.
https://www.economicshelp.org/blog/glossary/imf/

Q.4 What is globalization? How has globalization made international business and
trade more complex?
What is globalization - https://youmatter.world/en/definition/definitions-globalization-
definition-benefits-effects-examples/
Complex - https://www.slideshare.net/sravanikasturi/challenges-faced-by-
international-business
Complexities in International Business & Trade
 International accounting
 Cost calculation and global pricing strategy
 Universal payment methods
 Currency rates
 Choosing the right global shipment methods
 Communication difficulties and cultural differences
 Political risks
 Supply chain complexity and risks of labor exploitation
 Worldwide environmental issues
 Dominance of Regional over Global strategies
 Increasing opportunities for business abroad has led to geographic diversification
on a large scale
 Corporate Social Responsibility refers to good citizenship. And as a citizen the
international firms must ‘do well and do good’ simultaneously.
 Sustainable Development is not synonymous with economic growth.
 International company structure
 Foreign laws and regulations

Q.5 Explain the various activity participants in international financial activities

Chapter 1 ppt in page no 8
https://www.yourarticlelibrary.com/investment-management/functions-of-
participants-in-the-financial-market/89415

Q.6 What are the objectives of World bank?

Chapter 1 ppt in page no. 20 to 22 and word file named IMF & word bank
https://accountlearning.com/world-bank-objectives-membership-activities/

Q.7 Explain the importance and system of credit ratings in international finance.
Importance - https://www.paisabazaar.com/cibil/credit-rating/
https://www.mbaknol.com/financial-management/credit-rating/
Q.8 Explain the two varieties of Exchange rate determination in an economy
https://courses.lumenlearning.com/boundless-economics/chapter/exchange-rates/

https://www.vedantu.com/commerce/exchange-rate-determination

dual exchange rate - https://en.wikipedia.org/wiki/Dual_exchange_rate

Chapter – 2

Q.1 What are the various Currency derivative types used in Foreign exchange risk
management.
https://www.edupristine.com/blog/currency-and-commodity-derivatives
ppt chapter 2-page No. 63 to 77 (there is no proper ans.)

Q.2 Explain the concept of FCNR (B) Account. What are its benefits?
https://www.dbs.com/in/treasures/articles/nri-hub/live-enriched/difference-between-
fcnra-and-fcnrb#:~:text=The%20main%20benefit%20of%20an,on%20these
%20deposits%20to%20NRIs.

Q.3 What are the various internal and external techniques of mitigating various
Foreign Exchange risks?
(not confirm)
https://www.shahucollegelatur.org.in/Department/Studymaterial/comm/bcom3yr/2%2
0Instruments%20and%20Techniques%20of%20Risk%20Management.pdf