POST GRADUATE DIPLOMA IN INTERNATIONAL BUSINESS OPERATIONS / MASTER OF COMMERCE Term-End Examination December, 2014 IB0-06 : INTERNATIONAL BUSINESS FINANCE Time : 3 hours Maximum Marks : 100 Weightage : 70% Note : Attempt any five questions. All questions carry equal marks.
1. Explain the concepts of 'Balance of Trade' and 'Balance of Payments', with the help of specific illustrations.
2. "A change in the exchange rate can result in three different exposures for a company : translation exposure, transaction exposure and economic exposure". Explain the mechanism with suitable illustrations.
3. Explain the international money transfer mechanism.
4. Discuss the broad features of international monetary system, highlighting the role of international monetary system. 5. Explain the concept of Foreign Direct Investment. While explaining briefly the policy framework adopted in India, suggest change(s) in the policy in view of the prevailing crisis in country's balance of payments.