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MBFM4002

This document contains instructions for the M.B.A. degree examination in Finance for the fourth semester. It lists 17 questions that students can choose to answer, covering topics like globalization, exchange rates, balance of payments, foreign exchange markets, foreign direct investment, and other international finance topics. The final compulsory question is a case study about a large Indian pharmaceutical company that is considering sourcing raw materials from Taiwan, with payments in US dollars and euros. Students are asked to analyze issues the company's CFO would take into account when presenting this supply contract to management, and predict the likely responses from board members. They are to download exchange rate data and discuss expected value, variance, planning horizon, and assumptions

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dinu dinesh
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100 views4 pages

MBFM4002

This document contains instructions for the M.B.A. degree examination in Finance for the fourth semester. It lists 17 questions that students can choose to answer, covering topics like globalization, exchange rates, balance of payments, foreign exchange markets, foreign direct investment, and other international finance topics. The final compulsory question is a case study about a large Indian pharmaceutical company that is considering sourcing raw materials from Taiwan, with payments in US dollars and euros. Students are asked to analyze issues the company's CFO would take into account when presenting this supply contract to management, and predict the likely responses from board members. They are to download exchange rate data and discuss expected value, variance, planning horizon, and assumptions

Uploaded by

dinu dinesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MBFM 4002

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

Fourth Semester

Finance

GLOBAL FINANCIAL MANAGEMENT

Time : Three hours Maximum : 100 marks

Answer any FIVE questions.

1. What is Globalization of trade and list out the


implication of globalization in India?

2. Explain the relationship between investment


transfer of technology and global Business?

3. What are the types of exchange rate regime.


Explain?

4. What is BOP? Briefly discuss the components of


BOPs?

5. What is FOREX Market? Explain the unique


characteristics of FOREX Market?

6. Define Euro Bond. Explain the different types of


Euro Bond?
7. Distinguish between transaction and translation
exposure?

8. Explain the benefits of FDI (Host Country)?

Answer any FIVE questions.

9. Critically evaluate the challenges of Globalization


in India?

10. Discuss the nature and scope of IFM?

11. What is Capital Account? What are its


components? Discuss.

12. Discuss the role of the World Bank?

13. What is GDR? State its characteristics and issue


requirements?

14. What is operating exposure? How do you measure


the operating exposure?

15. Briefly explain the different types of foreign


investment?

16. What are the forms of FDI? Discuss.

2 MBFM 4002
Case Study (Compulsory)

17. You are the CFO of a large Indian pharmaceutical


company. Over the last five years your company
has grown primarily through overseas
acquisitions. You started acquiring companies in
Europe and North America in 2000.

Your balance sheet on March 2005 has assets


equivalent of US $200 million, including those of
your subsidiaries.

In the last board meeting, a presentation made by


your major European subsidiary painted a
worrisome picture. This bulk drug manufacturing
facility sources its raw materials from a small
South African country, which is facing political
unrest. This means that the reliability of this
source of raw materials, in the days to come, is
poor. Your subsidiary is keen to sources this
material from a small Taiwanese firm, This
Taiwanese firm is willing to supply the raw
material but wants payments in US dollars for the
January to June 2006 period: in euros for the July
to December 2006 period through its Cayman
Island bank account.

If this supply contact clicks, it could mean at least


two things; one getting a reliable supplier and two,
opening a link in the Far East Market.
3 MBFM 4002
You are preparing to present a case for this supply
contract to the top management. You search the
web to get some data on USD/INR and EURJ1NR
behaviour. Download data for these two time
series, calculate expected value and variance/
standard deviation. Issues like planning horizon
overall variability, and other assumptions should
be discussed.

Question:

Critically analysis the issues that you will take


into account and what is the likely responses from
the board members?

4 MBFM 4002

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