1) Why do firms globalize and how international financial management is important for globalized firms ?

2) Explain the following terms: Bid option and offer rate Forward rate Cost of transaction 3) Problems Calculate the discount on a rupee for 3 months forward when spot rate is 35.0089 rs/$ and 3 months forward rate is 35.9987 per $ Calculate the outright when a rupee is selling in forward market at a discount of 1% for 30 days forward against dollar, spot rate is rs 35.004/$ Calculate the annualized discount on rupees for the 3 months forward, when spot rate is rs. 35.8756/$ and three months forward rate is rs 32.1769/$ 4) What do you understand from balance of payments account ? what is its structure? 5) What are the determinants of current account and how do you contain them? 6) Explain the theories of purchasing power parity ? 7) Explain the intrest rate model of exchange rate determination? 8) Explain the fundamentals of technical forecasting? 9) Brief notes on: Currency futures Currency swaps Currency options 10) Distinguish between transaction and translation exposure and illustrate with an example?