IGNOU IBO-06 June 2023 Previous Year Question Paper

Q1.(a) Discuss the working of the Brett on Woods System. What were its weaknesses ? 10

(b) What is International Monetary System ? Why is there need for such a system ?

Q2.(a) Explain the purchasing power parity theory. 10

(b) Explain the rationale of foreign direct investment.

Q3.Differentiate between transaction exposure and translation exposure with examples. Discuss the various curren cy translation methods.

Q4.Explain the different types of guarantee used in international trade. Also explain advantages of each guarantee for the buyers.

Q5.Explain the following terms with suitable examples : 4×5=20

(a) Spot and forward transactions

(b) American Depository receipts

(c) Foreign Bonds

(d) Bid and offer rates [ 3 ]

Q6.(a) What are foreign exchange markets ? What are their functions ? 10

(b) Discuss the princip al stages in the development of Multinational Corporations.

Q7.What is centralised cash management ?

Q8.Explain the advantages of centralised cash management with examples.

Q9.What is project export ? Explain the specific risks involved in project export business. What are the benefits of project export ? 2+8+10

Q10.Write explanatory notes o n any two of the following : 10+10

(a) Balance of payment

(b) Forfeiting

(c) Political risk

(d) SWIFT 4265-20

(4) SWIFT