BBM 415 INTERNATIONAL FINANCE Click to view

MAASAI MARA UNIVERSITY
REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR
FOURTH YEAR SECOND SEMESTER

SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF BUSINESS MANAGEMENT

 

COURSE CODE: BBM 415
COURSE TITLE: INTERNATIONAL FINANCE

DATE:15TH APRIL 2014 TIME:2.00PM – 5.00PM
INSTRUCTIONS TO CANDIDATES
Question ONE is compulsory
Answer any other TWO questions

This paper consists of 3 printed pages. Please turn over.

QUESTION ONE (compulsory)
a) After completion of Bcom in finance, you secure a job as a finance manger in your country, how will you deal with the following financial issues using knowledge acquired in the university.
(i) Need for International Business to the Kenyan economy (5mks)
(ii) Explain reasons why international trade is sometimes harmful to the economy (5mks)
(iii) What are the functions of International Monetary Fund (IMF) (5mks)

b) Given the following information of your country’s Average imports and exports for two years
Years Average price of

Taking 2012 as the base year. Compute the following
(i) Export Price Index (EPI) (5mks)
(ii) Import Price index (IPI) (5mks)
(iii) Terms of Trade (TT) (3mks)
c) Comment on the findings from above i-iii computational (6mks)
(Total marks 30)

QUESTION TWO
a) Explain why differences in terms of trade between countries (10mks)
b) From the following information on capital receipts and capital payments of a country for the year 2013:

Determine
(i) Overall balance of payment,
Comment of the findings: its favourable or unfavourable? (2mks)

QUESTION THREE
a) Explain the causes of Balance of Payments disequilibrium of any country like Kenya (10mks)
b) What measures would you advocate to increase the volume of exports of your country Kenya? (10mks)

QUESTION FOUR
a) Explain the meaning of the following documents as used in international finance
(i) Letter of credit (2mks)
(ii) Import licence (2mks)
(iii) Indent (2mks)
(iv) Bill of landing (2mks)
(v) Letter of hypothecation (2mks)

b) Highlight the contents of a commercial invoice in international finance (10mks)

QUESTION FIVE
a) Explain the main activities of International Monetary Fund (IMF) (10mks)
b) Give reasons why you can criticize the International Monetary fund (IMF)
(10mks)

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