NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: International Finance
Internal Assignment Applicable for September 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 3 in not more than 500 words for each subsection. Use relevant examples,
illustrations as far as possible.
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 their assignments, 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
other students is not allowed.

Students should follow the following parameter for answering the assignment questions.

For Theoretical Answer For Numerical Answer

Assessment Parameter Weightage Assessment Parameter Weightage
Introduction 20% Formula 20%
Concepts and Application 60% Procedure / Steps 50%
related to the question
Correct Answer & 30%
Conclusion 20%
Interpretation

1. The present price of USD is 64 times of INR, why the rate of USD is so high? What
are the methods of calculating the rates? ( 10 Marks)
 NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: International Finance
Internal Assignment Applicable for September 2017 Examination

2. Mr. Kamat is the head of Finance Department in QZ Export, Company exported goods
$ 1,50,000 to US base Company XM Ltd. On 2nd March 2017. XM Ltd promised to
pay on 4th June 2017. What are the different types of Risk in above transaction? And
how Mr. Kamat can minimize it? (10 Marks)

3. The major purpose behind Make in India initiative is job creation and skill
enhancement in all the major sectors of the economy. In September 2014, the
government increased the foreign investment upper limit with an aim to promote India
as an important investment destination and a global hub for manufacturing, design and
innovation. In 2013, India was ranked 15th in terms of FDI inflow, it rose up to 9th
position in 2014, and in 2015 India overtook the U.S and China as the top destination
for foreign direct investment. The success in FDI for India in such a short span is
worth applauding. Looking at the statistics, FDI during October 2014 and May 2016
grew 46 per cent from $42.31 to $61.58 billion after the launch of Make in India
campaign. Singapore, Mauritius, the Netherlands, Unites States accounts for major
share of FDI inflows in India.The government of India is taking various measures like
opening FDI in various sectors of the economy and improving ease of doing business.
Agriculture, Civil Aviation, Courier Service, Defense, Education, Pharma, Railway,
Telecom, Tourism, Food products are some sectors under the Make in India
initiative where 100 per cent FDI is permitted.
Sectors that attract maximum FDI include services, trading, automobile, and power.
The state-wise analysis shows Delhi, Haryana, Gujarat, Andhra Pradesh together
attracted more than 70% of total FDI. The government has approved more than 259
proposals for setting up special economic zones relating to IT sector.
Source: Business World
 NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: International Finance
Internal Assignment Applicable for September 2017 Examination

Q3. A. How Make in India and Foreign Direct Investment are related? What are the
reasons behind increase in FDI in India? (5 Marks)

Q3. B. Why some political parties are against FDI? What will the negative impact of FDI
on future of India? (5 Marks)

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