Do all the problems:

problem 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.

problem 2: Describe Purchasing Power Parity theory. Describe its relevance in illustrating changes in exchange rates.

problem 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.

problem 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?

problem 5: prepare short notes on the given terms:

a) Foreign Exchange Markets.
b) Balance of Payments.