DFIN401 INTERNATIONAL FINANCIAL MANAGEMENT

Description

SESSION	JUL – AUG 2024
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	IV
COURSE CODE & NAME	DFIN401– INTERNATIONAL FINANCIAL MANAGEMENT

 

 

Assignment Set – 1

 

 

1. Explain the Role of Factoring in Import Finance. How Does It Help in Mitigating Risks and Enhancing Cash Flow for Importing Businesses? Illustrate with Examples of Successful Applications.

Ans 1.

Factoring is a financial service that involves selling accounts receivables to a third party, known as a factor, at a discounted rate. This mechanism allows businesses to access immediate cash flow without waiting for payments from their debtors. In the context of import finance, factoring plays a critical role in bridging the gap between payment obligations to foreign suppliers and the receivables from local buyers. It is a valuable tool for importing businesses to manage

 

Its Half solved only

Buy Complete from our online store

 

https://smuassignment.in/online-store/

 

MUJ Fully solved assignment available for session July-Aug 2024.

 

Lowest price guarantee with quality.

Charges INR 198 only per assignment. For more information you can get via mail or Whats app also

Mail id is aapkieducation@gmail.com

 

Our website www.smuassignment.in

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

whatsapp no 8791490301.

 

2. Examine the Concept of International Capital Budgeting for Multinational Corporations (MNCs). What Are the Specific Factors That Make It Different from Capital Budgeting for Domestic Companies?

Ans 2.

International capital budgeting is the process by which Multinational Corporations (MNCs) evaluate and select investment projects in foreign markets. It involves assessing the potential profitability and risks associated with projects that extend beyond national borders. While the fundamental principles of capital budgeting—such as cash flow analysis, net present value (NPV), internal rate of return (IRR), and payback period—are consistent with domestic capital budgeting, the international context introduces complexities that require additional considerations.

Concept of International Capital Budgeting

Capital budgeting

 

3. Describe Different Types of Foreign Exchange Rates with Suitable Examples, and Discuss the Concept of Balance of Payments

Ans 3.

Types of Foreign Exchange Rates

Foreign exchange rates play a pivotal role in international trade and finance by determining the value of one currency in terms of another. Different types of foreign exchange rates reflect the mechanisms and influences that govern these valuations. Broadly, they can be classified as fixed exchange rates, floating exchange rates, and hybrid systems. Each type has unique characteristics and

 

Assignment Set – 2

 

4. Explain How the International Money Market Provides Access to a Diverse Range of Foreign Currencies. What Advantages Does This Offer to Individuals and Businesses Engaged in Global Transactions?

Ans 4.

Access to Diverse Foreign Currencies Through the International Money Market

The international money market is a dynamic and integrated financial marketplace that facilitates the borrowing, lending, and exchange of foreign currencies. It operates through a network of financial institutions, including banks, central banks, and multinational corporations, and provides access to diverse currencies required for global trade, investments, and hedging against currency risks. The market’s extensive reach and liquidity make it a cornerstone of

 

5. Examine Various Methods for Assessing Country Risk and Provide a Suitable Example for Each

Ans 5.

Country risk refers to the potential economic, political, and social challenges that businesses or investors face when operating in or investing in a foreign country. Assessing country risk is crucial for making informed decisions and mitigating losses. Several methods are used to evaluate different dimensions of country risk, each offering insights into potential challenges.

Economic Risk Assessment

Economic risk

 

 

6. Examine the Various Internal and External Hedging Techniques Used to Manage Foreign Exchange Exposure. Evaluate the Advantages and Limitations of Each Approach for Multinational Corporations

Ans 6.

Foreign exchange exposure arises when fluctuations in exchange rates affect the value of international transactions, assets, or liabilities. Multinational corporations (MNCs) use internal and external hedging techniques to manage this risk and protect their profitability. Each approach has distinct advantages and limitations.

Internal Hedging Techniques

Internal techniques involve