MBFM 4003

M.B.A. DEGREE EXAMINATION, AUGUST 2021.

Fourth Semester

Finance

INTERNATIONAL TRADE AND FINANCE

Time : Three hours Maximum : 100 marks

6 = 30 marks)

Answer any FIVE questions

1. List out the various factors affecting balance of

payments.

2. Mention any five barriers for international trade

in developing countries.

3. Define option contract. How to hedge with option

contract?

4. Write note on operational mechanism for a

forfaiting transaction.

5. What are the characteristics of foreign exchange

market?

6. What are the contents of bill of lading in detail

8. What is meant by the law of one price? Explain
with suitable example.

10 = 50 marks)
Answer any FIVE questions

9. Describe the effect of import restriction and effect

of high inflation on balance of payment.

10. What are the factors affecting the balance of

trade? Discuss how trade effects upon nations
GDP?

11. Compare and contrast long term and medium

term foreign exchange rate forecasting tool.

12. What are the terms of financing the exports as the

pre-shipment stage? Describe the operational
mechanism for the shipment financing?

13. Describe the key areas of reforms needed to

change SEZ face in India

14. Discuss the various fiscal incentives available to

exports in recent foreign trade policy in India

15. Enumerate the various types of shipment bills in

detail.

16. Discuss the advantages and disadvantages of the

hedging with forwarding contracts.

2 MBFM 4003
 20 = 20 marks)

Compulsory

defence sector, the government of India announced

for raising the foreign direct investment limit in
this sector under the automatic route from 49% to
74%. Enumerate the reason for this change at
present and how does this effect on current
balance of payment?

3 MBFM 4003