MS 45 IGNOU MBA Assignments July – Dec 2014

1. What are the special features of the Euro bond market? How do bond markets in general differ from equity markets?

Answer. The Eurobond market is made up of investors, banks, borrowers, and trading agents……… A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued…… Eurobonds give issuers the opportunity to take advantage of favorable regulatory and lending conditions in other countries……

2. Why do foreign exchange rates fluctuates? How do these fluctuations affect us? What can be done to minimize these fluctuations?

Answer. Exchange rates float freely against one another, which means they are in constant fluctuation…….. For most citizens of a country, this impact is usually only felt during international travel……. From the rate of inflation to monetary policy to political and economic conditions, there are many variables that shape a country………. The value of the domestic currency in the foreign exchange market is an important instrument in a central…….

3. How Does Export Credits Guarantee Corporation assist international trade? Give details of the various policies issued by it.

Answer. The Export Credit Guarantee Corporation of India was established in 1957 with an objective to provide insurance cover in respect of risks in export trade. These risk may include loss of money on account of foreign buyer becoming bankrupt or sudden import……. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors…..

4. Explain why cost of capital for MNCs is different from that of domestic firms? Discuss how cut of rate for foreign projects determined while appraising the project.

Answer. A firm’s capital consists of equity (retained earnings and funds obtained by issuing stock) and debt(borrowed funds)…….

5. What does deficit in the Balance of Payment signify? Is the balance of trade more important than balance of payments? Discuss the components of Balance of payments.

Answer. An imbalance in a nation’s balance of payments in which payments made by the country exceed payments received by the……… All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money…….. There are a number of policies that can be introduced to achieve an improvement in a country’s trade balance……..