Q1. Explain how the economic exposure is distinct from the transaction exposure? Describe with the help of appropriate illustrations.
Q2. Distinguish between the translation and transaction exposure. Explain how can these be hedged?
Q3. Illustrate the meaning of hedging? Write down the basic principles of the hedging? Describe the various tools of hedge transaction exposure?
Q4. What do you mean by Political risk?
Q5. What do you mean by Leading and lagging?
Q6. Illustrate the meaning of International Financial Management? Write down its distinctive features?
Q7. Explain how the cash flows to a multinational firm are distinct from that of a domestic firm?
Q8. Write down the complexities which are involved in multinational capital budgeting? Describe are the approaches to assess a foreign project?
Q9. Distinguish between the NPV and APV methods of the capital budgeting. Describe the various approaches to determine the NPV of a foreign market?
Q10. Should a foreign project be assessed from the point of the parent firm? If yes, explain how the cash flows be adjusted?