Post Graduate Diploma in International Business Operations
Term-End Examination

Time: 3 hours
Maximum Marks: 100

1. Make an objective assessment of the floating exchange rate system. Does it represent an improvement over the Breton Woods system ? Explain. (20)

2. What are Euro Bonds ? How do they differ from bonds issued in domestic financial markets ? Briefly describe the process of issuing these bonds. (20)

3. How are the funds transferred from one country to another ? Explain the mechanism and steps involved. In this connection also explain the role of either SWIFT or CHIPS. (20)

4. Discuss the nature and significance of world currency market. What are the various types of transactions in these markets ? Explain briefly. (20)

5. Describe the international fisher effect theory and explain its relevance. (20)

6. Differentiate between transaction and translation exposure. Explain funds flow adjustment hedging technique of translation exposure. (20)

7. What are the various types of guarantees used in international trade ? Discuss their respective roles. (20)

8. Write short notes on any two of the following : (10+10)

(i) LIBOR

(ii) Economic exposure

(iii) Counter trade

(iv) Banker's Acceptances