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.
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.