IGNOU IBO-06 June 2019 Previous Year Question Paper

Q1.Discuss the respective roles of IMF and World Bank bringing out the differences clearly.

Q2.VVhat is the foreign exchange risk ? How do the companies identify and manage such risks ? Select any one kind and state the methods available to manage it. 3+10+5

Q3.(a) Discuss the variables which are required for international project appraisal. 10

(b) List out important differences between domestic and international projects.

Q4.Under each of the following scenarios, whether the value of Indian rupee relative to Japanese Yen will appreciate, depreciate or remain the same ? Assume that exchange rates are free to vaxy : 4x5

(a) Inflation is higher in India than in Japan.

(b) Prices in Japan and India are rising at the same rate.

(c) Indian wages rise relative to Japanese wages which means that Indian productivity falls behind Japanese productivity.

(d) Real interest rates are higher in India -than in Japan. (A-15) 3 I IB0-06

(e) India imposes new 'restriction on their restrictions to buy companies and invest in real estate abroad.

Q5.Give a very brief explanation (3/4 lines only) to each of your answers.

Q6.Critically examine the role of government of India towards FDI inflows in recent years. Is this policy adequate keeping in view the urgent need to attract FDI inflows ? Discuss.

Q7.A major concern of the multinational companies in investing abroad is management of political risks. How do the companies assess and manage such risks ? Explain.

Q8.What is involved in tax planning by multinational companies ? What special consideration have to be kept in view while planning ? Discuss. 5+15 [4] !BO-06

Q9.Write short notes on any two of the following : 10x2

(a) Transfer Pricing

(b) Letter of credit

(c) Special Drawing Rights

(d) Spot and forward exchange rates (A-15) I 5 1130-06 vrt. 111. 311-06 3M64:1-4 "arEffgEr MI tiltich Tit SLCI iivanitrm amitr ( !ft. *. "A aut. t./TT. wYtt. ) trilvr 11',

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Q11.di-ntre3ilq 71' (IMF) WaT1 fdrd (World Bank) "4' stAch 'W; Webitti TIM 'WO TR Fq0:114 #1?-4R1

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Q16.q qf ITQUAT Wilt-04 ch4J-iiiq• '4* 117§4 TriTen topilicich ATTni wr 7-4-AF WM tl WallY awdi Tsr4 7-4-44-4 enta t? .utrum

Q17.Wst4 fffR f9-411-4ff (tax planning) WEIT Paid t? 'W{ 'WW1' Wtt 1:11471 [8] IB0-06 47 'ref* AT31 (considerations) VI tziR TC91 *? fd*A9 WrWRI

Q18.tsid T1 ich-61 ti"( Tifitwr Rifigq : io+lo

(v) ztamtur figker Off) TITN T1 (70 Nq dimtur alftli$11 (SDRs)

(11) 8iPlit (spot) IB0-06 32,000 yA-15l