Reference no: EM132784639

Answer any Nine (9) out of Ten (10) questions. Each Question carries 10 marks.

Question 1: Explain the main differences between International Finance and Domestic Finance. What are the major trends in the globalization of the world economy?

Question 2: In the international business environment, explain the emergence of Multi-National corporations and their structure. How do they help in maximizing shareholders wealth?

Question 3: Explain how the theory of comparative advantage relates to the need for international business.

Question 4: What are the important factors that affect the flow of international trade and what type of impact does it have on the economy of a country? Does the country benefit in the long run?

Question 5: What is the function of the international money markets? Briefly describe the reasons for the development and growth of the European money market.

Question 6: Describe how various economic factors can affect the equilibrium exchange rate of one country with respect to that of another country?

Question 7: Compare and contrast the fixed, freely floating, and managed float exchange rate systems. What are some advantages and disadvantages of a freely floating exchange rate system versus a fixed exchange rate system?

Question 8: Explain why the Sarbanes Oxley Act came into being and what are the main features of this Act and what it helps to achieve.

Question 9: What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents?

Question 10: What is the role of monetary policy in controlling money supply and demand with special emphasis on managing the interest rates?

Attachment:- International Finance.rar