Attempt all the questions.

1. (a) What is loan syndication? Explain the process of loan syndication. (3+7) (b) What are the various types of international debt instruments? Explain any two of them. (2+8)

2. (a) Why do central banks intervene in the foreign exchange market? What are the consequences of their intervention? (5+5) (b) Distinguish between translation exposure and transaction exposure. (10)

3. (a) What is transfer pricing? Explain with example the technique of transfer pricing. (2+8) (b) ‘Financial appraisal is the key most appraisal of any project’, Explain and also discuss its relationship with other appraisals namely technical, market, economic and social. (4+8)

4. (a) Discuss the various types of risk in project export. (8) (b) What are the various types of guarantee/ bonds is the international trade? How do they benefit the importer? (4+6)

5. . Discuss the various strategies to manage the political risk. (20)