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ASSIGNMENT
| DRIVE FALL | Spring 2014 |
| PROGRAM | Bachelors of Business Administration- BBA |
| SUBJECT CODE & NAME | BBA603 & ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS |
| SEMESTER | 6 |
| BK ID | B1905 |
| CREDITS | 4 |
| MARKS | 60 |
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
1 Give introduction to international finance. Explain the benefits, scope of international finance. List the advantages and disadvantages of globalization.
Answer :International finance is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. International finance examines the dynamics of the global financial system, international monetary systems, balance of payments, exchange rates, foreign direct investment, and how these topics relate to international trade.
2 Write short note on:
- Balance of Payment
- Current account
- Capital account
- Foreign exchange reserves
- Accounting equilibrium
Answer : Balance of Payment : Balance of Payments is the record of a country’s transactions with the rest of the world. Terms like trade surplus and deficit are used to describe if the country has more or exports than imports or imports than exports. More specifically, a country has trade surplus if value of exports exceed that of imports. A country has trade deficit if the value of its exports falls short of the value of its imports. US has been
3 Give introduction on foreign exchange. Explain on foreign exchange markets and role of international forex markets.
Answer : Foreign Exchange
The exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as “forex” and occasionally as “FX.”
4 Explain cash-in-advance and write the process of issuing letter of credit and different types of letter of credit.
Answer : Cash in Advance
The cash-in-advance constraint (sometimes known as the Clower constraint after American economist Robert Clower)[1] is an idea used in economic theory to capture monetary phenomena. In the most basic economic models (such as the Walras model or the Arrow–Debreu model) there is no role for money, as these models are not sufficiently detailed to consider how people pay for goods, other than to say everyone has a budget constraint. To be able to say anything about the money supply, inflation monetary policy and so on
5 Explain the Foreign Direct Investment (FDI). Give the comparison between American Depository Receipt (ADR) and Global Depository Receipt (GDR). Write the categories for trade blocs.
Answer : Foreign direct investment (FDI) is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. FDI includes investments made to acquire lasting interest in enterprises operating outside of the economy of the investor. FDI relationship consists of a parent enterprise and a foreign affiliate which together form an
6 Write down the differences between GATT and WTO. Explain the problems and achievements of GATT & WTO.
Answer: Difference between WTO and GATT:-
The World Trade Organization is not a simple extension of GATT; on the contrary, it completely replaces its predecessor and has a very different character. Among the principal differences are the following:
The GATT was a set of rules, a multilateral agreement, with no institutional foundation, only a small associated secretariat which had its origins in the attempt to establish an International Trade Organization in the 1940s. The WTO is a permanent
Dear students get fully solved SMU BBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601