NMIMS Course: International Finance

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NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: International Finance

Internal Assignment Applicable for December 2017 Examination

Assignment Marks: 30

Instructions:

·       All Questions carry equal marks.

·       All Questions are compulsory

·       All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subsection. Use relevant examples, illustrations as far aspossible.

·       All answers to be written individually. Discussion and group work is not advisable.

·       Students are free to refer to any books/reference material/website/internet for attempting theirassignments, but are not allowed to copy the matter as it is from the source of reference.

·       Students should write the assignment in their own words. Copying of assignments from otherstudents is not allowed.

Question. 1. 8th November, 2016 is considered as very important day for Indian Economy. Whathappened on that day? What were the impacts of that incident on USD: INR value?(10 Marks)

Answer:8th November, 2016 is considered as very important day for Indian Economy.India's NDA government made a strong stride of rejecting Rs.500 and Rs.1000 notes to check dark cash in the nation. The move was reported by Prime Minister NarendraModi in a broadcast declaration to the country.

On 8 November 2016, the Government of India declared the demonetisation of all ₹500 (US$7.40) and ₹1,000 (US$15) banknotes of the Mahatma Gandhi Series. The legislature guaranteed that the activity would diminish the shadow economy

Question.2. There are many Indian Companies listed in international stock market rather thanIndian stock market. What are the advantages and disadvantages of listing inInternational stock market? Explain the procedure for the same. (10 Marks)

Answer: Advantages and disadvantages of listing in International stock market:

Pros

Makes a market valuation for the business and empowers the chance to raise capital for extension, and in addition the likelihood of understanding some of your speculation.

Gives access to an obtaining money and straightforwardness around the estimation of the business. Recorded organizations frequently utilize their shares, rather than money, to make acquisitions. This can be especially valuable while executing a purchase and-construct technique when money can be better used in different territories. "In the event that you have a target valuation for your shares, an objective organization will know precisely what they're getting in the event that you offer them partakes in your business," clarifies Dr

Question.3. CASE STUDY

India's foreign exchange reserves went up $1.3 bn to touch $ 367.2bn as of the week ended August 19 said the Reserve Bank of India in its weekly statistical report. According to market sources after two weeks of remaining flat the reserves went up supported by strong capital inflow which has given the chance to RBI to mop up more dollars to prepare for the FCNR(B) outflows that are expected to begin next month.India'sforex reserves have been steadily climbing up to a record high, only with occassional hiccups in the event of international issues like Brexit, impending Fed rate hike and even uncertainty in the Chinese economy. The stability of the Indian markets have also caused net inflows to the tune of Rs 5397 crore in the month of August thereby taking the total inflow into Indian equities and debt markets to Rs 32,452 crore this year shows data released by NSDL. Source: The Economic Times, Aug 26, 2016

a)What is the meaning of BREXIT? What is the relation between India’s foreignexchange and BREXIT? (5 Marks)

Answer:The United Kingdom's forthcoming withdrawal from the European Union is generally known as Brexit, a portmanteau of "England" and "exit". Following a submission hung on 23 June 2016, in which 51.9% of votes cast were supportive of leaving the EU, the UK government has expressed its goal to summon Article 50 of the Treaty on European Union (the formal technique for pulling back) on 29 March 2017. This, inside the bargain terms, would put the UK on a course to leave the EU on, before or possibly after 29 March 2019.

b)Why most of the investors prefer to invest in Indian Market? Explain with the helpof above paragraph. (5 Marks)

Answer:Most investors have a gigantic home predisposition. This means most investors want to put resources into their home markets. Test this: investors in the US put around 73% in their home market when the US securities exchange represents half of worldwide values. Those in the UK contribute around half at home, when the UK securities exchange makes up just 10% of worldwide stocks. Indians contribute about 98-100% of their value

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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or

Call us at : 08263069601

(Prefer mailing. Call in emergency )