“Multinational Finance Cases (A)”

1st case
FSDC has identified four soft spots in the Indian economy which are as follows:

 Rising inflation
 Widening balance of trade deficit
 Change in the composition of falling inflows which are more in favor of portfolio
investments
 Rising interest rates

Assess the impact of the above four factors on the exchange rate movement of the Indian
currency.

2nd case
As a consultant to an American institution, who wants to invest in India for a medium term, what
will be your advice ?

3rd case
IndiGo has recently placed an order for purchase of 180 A320 airbuses for $15.3 billion. The
deliveries are expected to commence from 2016 to 2025. As a CFO of IndiGo, which factors
would you have considered before taking such decision?

4th case
The recent U.S data indicates that the U S economy is on a recovery path.

As a consultant to an Indian investor, would you recommend investment in dollar denominated

assets? Discuss giving proper reasoning to your decision.

5th case
As per the recent data released, the Trade deficit has widened to 4.1 % of GDP and given the
increasing consumption, the imports are to grow up. The trade deficit will increase further.

What impact such widening trade deficit can have on Exchange rates and the forex reserves?
6th Case
Taking into consideration, the present development into the world, what is your take on
exchange rate movements of four major currencies (Rupee, Dollar, Pound, and Euro)?

As a CFO of an Indian corporate, if you desire to raise resources from international markets,
which currency will you prefer and why?

7th Case

While raising resources from international markets, which factors will you consider while
deciding on the type of instrument through which resources will be raised and the currency in
which the resources should be raised?

Will this decision have any relation through the principal laid down in PPP theory?

8th Case
As an advisor to an entrepreneur, who wishes to enter into export and import business, what will
be your advice for exporting a ship load of onion to Dubai on the basis of a confirmed order?

What other formalities he should complete to undertake this export from India?

9th case:
Describe Vedanta Cairn deal and the promotion of FDI through this deal. Is there any
consistency in this policy of promotion and how it will impact inflows into India ?

10th
case:
As an MNC, what are the risks you are likely to face in terms of transactions, translation and
economy risks ?

How these risks can be managed ? To maximize your returns, what will be your policies in
respect to cash management, short term and long term borrowing and inventory ?