CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE SMUAPR15 ASSESSMENT_CODE MBF404_SMUAPR15 QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 15783 QUESTION_TEXT Explain the advantage and disadvantage of globalization. Advantages –6 marks -1 each 1.Economic growth 2.Lower cost 3.Improved availability of goods and service s 4.Global prosperity and flow of productive resource s 5.Incentive forresearch and adoption of 6.innovations SCHEME OF EVALUATION 7.Raise cheaper loans Disadvantages–4 marks – 1 each 1.Unavoidable risks like tradecycle s 2.Undue political , economic and cultural risks 3.Problem of heavy debtedness 4.Problem of foreigncurrencies s QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 15788 QUESTION_TEXT Define countertrade. Discuss the different forms of countertrade. SCHEME OF EVALUATION Counter trade means all types of foreign trade in which the sale of goods to another country is associated with parallel purchase of some other goods from that country The different forms of counter are : Barter Buy back counter purchase QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 72802 QUESTION_TEXT Discuss the various tools of foreign exchange risk management. i. Forward contracts ii. Futures contracts SCHEME OF EVALUATION iii. Option contracts iv. Currency swaps 2 ½ marks each QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 72807 QUESTION_TEXT Explain the following in details. a. Forward market b. Futures market c. Options market SCHEME OF EVALUATION a. Forward market – with in-depth explanation (3 marks) b. Futures market – with in-depth explanation (4 marks) c. Options market – with in-depth explanation (3 marks) (10 marks) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125182 QUESTION_TEXT List out with brief description the different forms of credit provided to exporter? 1.Pre-shipment credit-credit provided for procuring raw material, packing and processing of goods as well as for the other processes till the goods are really shipped. Time period, extensions etc. (2.5 marks) 2. Post-shipment credit-credit after the goods have been shipped and against the submission of export documents. Time period, extensions etc. SCHEME OF EVALUATION (2.5 marks) 3. Medium term credit- credit against certain categories, Time period, extensions etc. (2.5 marks) 4. Credit under duty draw-back scheme- purpose, Time period, extensions etc. (2.5 marks) Total marks: 10 QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125186 QUESTION_TEXT Discuss the aspects that a firm needs to examine in order to decide the sources from where funds are to be procured. SCHEME OF EVALUATION Segmented markets Integrated markets Taxation rules Lending norms Disclosure norms Information barrier Small country bias Exchange rate fluctuation Transaction cost