INTERNATIONAL FINANCE MANAGEMENT ISBM EXAM ANSWER SHEET PROVIDED WHATSAPP 91 9924764558

INTERNATIONAL FINANCE MANAGEMENT ISBM EXAM ANSWER SHEET PROVIDED WHATSAPP 91 9924764558
CONTACT: DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

 INTERNATIONAL FINANCE MANAGEMENT
COURSE : Total Marks :
CASE STUDY : 1
Following are the data for India’s B.O.P.
Year 2004-05 Rs (in Mn)
1) Merchandise Exports 3,62,661
2) Merchandise Imports 5,33,778
3) Income on Travel, Transportation MIS 2,27,762
4) Payments on Travel, Transportation MIS 1,63,353
5) Receipts for Maintenance of Embassies 1,812
6) Payments for Maintenance of Embassies 1,172
7) Unrequired Transfer Received 96,318
8) Unrequired Transfer Outwards 1,939
9) Investment Income Received 21,098
10) Investment Income paid to Foreign Residents 39,014
11) Foreign Investment (FDI, FPI) Received 2,06,696
12) Foreign Investment made by Indian Films 1,53,377
13) Other Capital Receipts 2,90,100
14) Other Capital Outflows 1,98,016
Question :
1) Calculate balance of Visiable Trade?
2) Calculate balance of Invisiable Trade?
3) Calculate balance of Capital Account?
4) Calculate change in Reserves?
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY : 2
The Indian Foreign Exchange market has grown substantially during the liberalization
period of the Indian economy. The growth in the retail segment of the market has
increased the foreign exchange business turnover of `Authorised Dealers’ while the
increase in tourism has boosted the business volumes of `Money Changers’.
This period has seen several landmark developments such as change in the vehicle
currency, introduction and withdrawals of the `Liberalised Exchange Rate Management
System (LERMS), change in the modality of quoting exchange rates, stepwise
introduction of convertibility of the Indian Rupee etc. The Foreign Exchange Dealers
Association of India (FEDAI) has played a significant part in helping the market to
assimilate these changes thereby ensuring the smooth functioning of the market.
Question :
1) Define Foreign Exchange Market? What are its characteristic features?
2) What were the provisions of LERMS?
3) What are the function of FEDAI?
4) Which is the currency used as vehicle currency in India?
5) Who are `Money Changers’?
CASE STUDY : 3
US $ Millions 1998-1999 1999-2000
Exports 34,298 38,285
Imports 47,544 55,283
Trade Balance -13,246 -17,098
Invisibles 9,208 12,935
Current A/c Balances -4,038 -4,163
External Assistance 820 901
NRI Deposits 1,742 2,140
Foreign Investments 2,412 5,191
Borrowings & Others 3,591 2,010
Total Capital A/c 8,565 10,242
Overall Balance 4,222 6,402
Given the above data.
Question :
1) Compile the basic balance?
2) Examine the trade balance vis-à-vis the current account balance and explain its effect
on the economy?
3) Explain the behavior of the Capital Account entries and how can they affect the
economy?
4) Is the increasing positive `Overall balance’ good for the economy? Why?
CASE STUDY : 4
Following the experience of successive financial crises in countries such as Maxico,
Russia, Brazil, Turkey & Argentina. Besides South-East Asian countries over the past
decade. It is now widely held within policy circles in developing countries that full
capital account convertibility, which allows any entity to transfer their funds at will in
and out of a country, causes more harm than good.
Introducing capital account convertibility at this stage would further encourage such
speculative inflows and reckless commercial borrowings.
This increased risk within the country’s financial system had the potential of harting the
common people, who would have to bear the brunt of adjustments once the boom comes
to an end convertibility will increase the number of billionaires in India, not through
entrepreneurial profit but through untaxed capital gains. This massive inflow of
portfolio investments does not have any positive impact on the productive sectors of the
economy.
Question :
1) What is capital account convertibility?
2) What are the risks in capital account convertibility in India context?
3) What is the present status of capital account convertibility in India?
4) Bring out the arguments in support of convertibility?