DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Fourth Semester
MULTINATIONAL FINANCIAL MANAGEMENT
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — X 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. How does multinational financial management differ
from domestic financial management?
2. What are the economic risks that are to be faced by
MNCs?
3. What factors are to be considered by MNCs while
contemplating investment in a country having exchange
control?
4. Describe some of the problems to manage short-term
investment portfolio.
5. Describe the factors responsible for choice between
offshore production and local purchase.
Sub. Code
43
DE-2718
2
wk 3
6. What are the basic assumptions on which MNCs plan
their capital structure?
7. What are business risk and financial risk? How does each
of them influence the MNCs capital structure decisions?
8. What are the important uses of transfer pricing?
SECTION B — X 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Examine the market players and their role in
multinational financial environment.
10. Discuss the impact of FDI on Least Developed Countries
(LDCs).
11. How the financing decision can influence the
sensitivity of NPV to exchange rate forecasts?
What is meant by the incremental cash flows of a
capital project?
12. Discuss in brief, various techniques to optimize cash
flows.
13. Discuss the inventory management strategies followed by
MNCs.
14. What do you mean by Global Depository Receipts?
Explain the advantages and disadvantages of issuing
GDR to issuing company.
15. Discuss the determinants of credit policy.
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