Attempt all the problems
problem1)
a) Discuss fixed exchange rate system. Why did system fail?
b) describe briefly Asian Currency Crises.
problem2)
a) describe Euro Commercial Paper. Describe its mechanism.
b) Illustrate purchasing power parity theory? How is exchange rate determined under this theory?
problem3)
What is economic exposure? Describe various techniques of managing economic exposure.
problem4)
a) Describe about special documents used in the international trade.
b) describe the rationale of FDI.
problem5)
describe the following:
a) Centralized vs. Decentralized cash management
b) Measuring political risk