International Banking & Foreign Exchange Management DEC 2024

Description

International Banking & Foreign Exchange Management

December 2024 Examination

 

 

1. Mr. Motilal requires to purchase some raw material from a supplier in the US. Mr. Motilal is a small firm dealing with the US supplier for the first time. What are the different facilities that a bank can provide to Mr. Motilal in this process of importing the required material? Describe in detail. (10 Marks)

Ans 1.

Introduction

International trade is a critical aspect of modern business, allowing companies to access raw materials and products from global suppliers. When a small firm like Mr. Motilal’s is engaging in international trade for the first time, various complexities arise, including dealing with foreign currencies, managing risks, and ensuring timely payments to foreign suppliers. Banks play a vital role in facilitating these transactions by offering a wide range of services tailored to importers’ needs. These services ensure that businesses, especially those engaging in foreign transactions for the first time, can smoothly navigate the complexities of international payments, foreign exchange fluctuations, and regulatory compliance. As an importer, Mr. Motilal needs access to secure, efficient, and cost-effective solutions to ensure that

 

It is only half solved

 

Buy Complete from our online store

 

https://nmimsassignment.com/online-buy-2/

 

NMIMS Fully solved assignment available for session DEC 2024,

 

your last date is 29^th Nov 2024.

 

Lowest price guarantee with quality.

Charges INR 299 only per assignment. For more information you can get via mail or Whats app also

Mail id is [email protected]

 

Our website www.aapkieducation.com

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

Whatsapp no OR Contact no is +91 8755555879

 

 

2. Suppose you have received a job offer letter to work in the front office of the treasury department of a big international bank. Your family members are very excited and want to know what kind of work you will be doing. Explain to them, the kind of work you would be doing in your new job differentiating it from the middle and back office of the treasury department. (10 Marks)

Ans 2.

Introduction

Working in the treasury department of an international bank, particularly in the front office, is an exciting and challenging opportunity. The treasury department plays a crucial role in managing the bank’s liquidity, investments, risk, and overall financial stability. The front office is the most visible part of the treasury, often responsible for interacting with clients, executing trades, and managing portfolios. This role requires in-depth knowledge of financial markets, products, and strategies. As a front office professional, I will be directly involved in activities that generate revenue for the bank, including trading foreign currencies, managing risks, and ensuring optimal use of the bank’s funds. However, the treasury department also includes middle and

 

3a. Mr. Raman wants to raise capital to expand his manufacturing business across the country. He is considering tying up with a foreign company that has shown interest of collaborating with him using the route of Foreign Direct Investment (FDI).  Explain what you mean by FDI with an example and how Mr. Raman and the foreign company can collaborate via it.     (5 Marks)

Ans 3a.

Introduction

Foreign Direct Investment (FDI) refers to an investment made by a company or individual from one country into business interests located in another country. This typically involves not just financial investment but also ownership, control, or a significant influence over the management of the business. FDI is considered a key driver of economic growth as it brings in capital, technology, and expertise. In Mr. Raman’s case, tying up with a foreign company through FDI would allow him to access the necessary resources to expand his manufacturing business across

 

1. Bank of Almora does not have a branch in Switzerland. To fulfill its clients’ needs it would like to have a correspondent banking relationship with a bank in a Switzerland. Outline how Bank of Almora can use the process of correspondent banking and what kind of services could be provided through it? Also, what kind of accounts would be utilized in the process? (5 Marks)

Ans 3b.

Introduction

Correspondent banking is a system where one bank (the correspondent) provides services to another bank (the respondent) to conduct business transactions, especially in regions where the respondent bank does not have a physical presence. In the case of Bank of Almora, which lacks a branch in Switzerland, it can establish a correspondent banking relationship with a local Swiss bank to meet its clients’ needs. This partnership allows Bank of Almora to offer essential banking services like payments, foreign exchange, and trade finance in Switzerland without directly