Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call
us at : 08263069601
ASSIGNMENT
Course Code : MS - 45
Course Title : International Financial
Management
Assignment Code : MS-45/SEM - II /2013
Coverage : All Blocks
Note: Attempt all the questions
and submit this assignment on or before 31st October, 2013 to the coordinator of your study centre.
1.Explain in detail how the financial architecture has evolved over a
period of time.
Answer : In 1990s, In response to major financial
crises, the international community embarked on a range of initiatives to help
prevent crises and to manage them in the event that they nevertheless occur.
This framework was referred to as the International
Financial Architecture (IFA).
International Financial Architecture (IFA) is a financial system
consisting of institutions and regulators that act on the international level,
2.What are international financial flows? Explain the structure of the
balance of payments and discuss the basic principles governing recording of the
flows.
Answer : International financial flows refers to the movement of
money with the intention of investment, trade or business production. Changes
in global politics and in technology have resulted in a mind blowing growth of
international financial flows.
International Capital Flows
(Financial flows) means the inflow and outflow of capital from one nation to
another nation.
The balance of payments measures all flows of money between the UK
and the rest of the world. The current account records the movements of all
goods and services into and out of the UK. The capital account measures all
capital flows
3.Explain in detail the Purchasing Power Parity (PPP) and the Interest
Rate Parity (IPR)
Answer : What is Purchasing Power Parity?
Purchasing power parity (PPP) is a theory which states that
exchange rates between currencies are in equilibrium when their purchasing
power is the same in each of the two countries. This means that the exchange
rate between two countries should equal the ratio of the two countries' price
level of a fixed basket of goods and services. When a country's domestic price
level is increasing (i.e., a country experiences inflation), that country's
exchange rate must depreciated in order to return to PPP.
The basis for PPP is the "law of one price". In the
absence of transportation and other transaction costs, competitive markets will
equalize the
4.Why is cost of capital different across countries?
Answer : The cost of capital in a
country is a key variable determining that country ability to compete for internationally mobile capital. It sets
the level of investment in the economy and is thus a central factor in the
determination of real wages and economic growth. In the United States, at
least, the allegedly high cost of capital is often blamed for the slow rate of
growth of productivity and the perceived loss of international competitiveness.
The same concerns are expressed in Canada, along with a host of additional
factors. Among them are that tax changes in the U.S., if not matched by changes
in Canada, can have adverse impacts on the
5.What are the factors responsible for the recent surge in
international portfolio investment?
Answer : The recent surge in
international portfolio investments reflects the globalization of financial
markets. Specifically, many
countries have liberalized and deregulated their capital and foreign exchange
markets in recent years. In addition, commercial and investment banks have
facilitated international investments by introducing such products as American
Depository Receipts (ADRs) and country funds. Also, recent advancements in
computer and telecommunication technologies led to a major reduction in
transaction and information costs associated with international investments. In
addition, investors might have become more aware of the potential gains from
international investments.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call
us at : 08263069601
No comments:
Post a Comment