Do all the questions:
Question 1: What do you understand by the term adjustable peg? Compare the adjustment process under gold standard and under the exchange rate regime introduced by the Bretton woods system.
Question 2: Describe Purchasing Power Parity theory. Describe its relevance in illustrating changes in exchange rates.
Question 3: Describe the need and significance of International Cash Management. Which of the gain from centralized cash management are associated to foreign exchange transaction costs? Describe.
Question 4:
a) What are the factors that influence the design of world-wide corporate capital structure?
b) What are the various sources of long term external finance for MNCs?
Question 5: Write short notes on the given terms:
a) Foreign Exchange Markets.
b) Balance of Payments.