IGNOU IBO-06 December 2017 Previous Year Question Paper

Q1.Distinguish between balance of payments and balance of trade, giving specific illustration. What are the methods available to a Government to correct adverse balance of payments ? Is devaluation a viable option ? Discuss. 5+10+5

Q2.What were the major weaknesses of Bretton Woods System which led to its breakdown in 1971 ? Has subsequent amendments in IMF articles succeeded in removing these weaknesses ? Discuss.

Q3.How do you measure and manage transaction risk ? How is the transaction risk different from translation risk ? Explain giving suitable illustrations.

Q4.Discuss the nature and genesis of Global Financial Markets. What purposes do they serve ? Also discuss some of the major financial instruments used in the markets. 12+4+4

Q5.What is the most important rationale of Foreign Direct Investment (FDI) ? What are the dangers of FDI ? Discuss.

Q6.Discuss Euro Markets and explain in brief various instruments of Euro Markets.

Q7.Define cost of Equity. If risk perceptions change what happens to cost of equity ? How equity cost of capital for foreign project is arrived at ? 6+6+8

Q8.Explain the various ways of assessing and 20 managing political risk by multinational corporations.

Q9.Write short notes on any two of the following : 10+10

(a) Multilateral Investment Guarantee Agency (MIGA)

(b) Transfer Pricing

(c) Regulatory and Institutional Framework for Financing Project Exports in India

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Q13.clkcioellq f4tzi 310 74 -3-0TrU (genesis) rciati-1 W -ARI A Pb-1 3t4 11-4 c fi e ? wqr4 dyti)if Ty,' SRI 12+4+4

Q14.fe<I,11 -5reTAT Piclqr (FDI) r 31t4 dchiNT{ ?:1T t? f*41131 - 14.! azrr Wurri f ?

Q16.Trft%TrEiT I irq -4 -fuR -51- 14iuli (perceptions) 4 41(141 t TR WIT 30114 i1cif t? zff 'Wdr4Rran fakt qiii)A-11*%R thzra 01 11d -WI 3Trwff .4, ichqr wdr t? 6+6+8

Q17.TOT tml ach Wal4 341 -*-69 . R.4 20 314*Ti fdr 1-1R Tredzli -11-A7 I

Q18.-14-110 (ski 414 retpat TTZ Ti -NTLTE 141 Ili fffftiR1 10+10

(a) -4-0 104 i slaW R-41# (MIGA)

(b) atamIlifritlhut (Transfer Pricing)

(c) •ro 4 Pigici -R4 ti+tut-sic► GiT4i

(d) Lb jif (Forfaiting)