1St Unit – Introduction to International finance
1) What is the objective of International Business?
2) What is MNC?
3) What are the components of Input market?
4) Name the various sources at the micro level of a company?
5) As for as India is concerned what is the Macro view of foreign flow?
6) What you mean by output market?
1) What you mean by sectoral Interdependence?
2) What is Foreign exchange risk and Political risk?
3) How licensing and franchising are different?
4) What motivates International Business?
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1) What is International Trade?
2) Define Balance of Payment?
3) What is balance of Trade?
1) When Balance of Payment is said to be in “Equilibrium”?
2) What constitute the structure of Balance of Payments?
3) List any four components of Current account.
4) How Current account and Capital accounts are different?
5) What is “unilateral transfers”?
6) What you mean by amortisation in the official capital transactions?
7) Give four examples of invisible transaction.
1) What are the implications and uses of BOP?
2) What is a credit transaction and a debit transaction?
3) Explain briefly about Official Reserve Account.
4) Give the two forms of capital inflow with examples.
5) Give the two forms of capital outflow with examples.
6) Draw the format of balance of payment with assumed figures.
7) How the international financial institutions are classified?
8) How the international financial institutions are classified?
9) Pass entry for the following transactions in the BOP of A country:
• A country, exports goods to B country worth $ 10,000, B country makes the payment for goods imported from A.
• A,s citizen Mr. Z travels to B country for a pleasure trip and spends $ 500 in country B.
• Mr. T resident of country A sends $ 250 to a friend in B as a birthday gift.
1. Balance of Payment always balances- Explain.
2. What do you understand by disequilibrium in Balance of payments? What are the types and causes of disequilibrium?
3. Bring out the various methods that a country can adopt to correct its disequilibrium in balance of payment.
4. Pass entries for the following transactions and prepare balance of payment statement for US:
a) A US firm exports $ 2500 worth of goods to New Zealand.
b) Mr. Steven a US citizen visits London and spends $ 650 on hotel, meals etc.
c) US Govt gives $ 15000 to an NGO in India a special aid towards tsunami relief work.
d) A US firm purchases foreign stock for $ 8000 from Bombay stock exchange.
e) A foreigner buys bonds worth $6000 from US Federal bank.
f) US Govt grants an Aids assistance fund $ 5000 to South African govt.
g) A Indian traveler spends $3000 with his girlfriend in Washington D.C. and finds a valet containing $200 which he brings to India.
5. A Series of transactions between India and the rest of the world are given below.
a) An Indian company exports goods to British company for $2000
b) An American exports goods worth $3000 to India.
c) An Indian company imports $500 worth of goods to Canada.
d) An Indian citizen goes on vacation to America and spends $5000.
e) A Japanese automobile company decides to build an...