MS-45 Solved Assignment

Old Samples – Ignou MS-45 Solved Assignment

Q. Explain in detail how the financial architecture has evolved over a period of time.

Answer. The system has evolved substantially since its emergence in the late 19th century during the first modern wave of economic globalization, marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets……

Although the exchange rate stability sustained by the Bretton Woods system helped facilitate expanding international trade, this early success masked its most fundamental underlying design flaw, wherein there existed no mechanism for increasing the supply of international reserves to support continued growth in trade…….

Among the achievements were trade liberalization in agricultural goods and textiles, the General Agreement on Trade in Services, and agreements on intellectual property rights issues. One of the key manifestations of this round of negotiations was the Marrakech Agreement signed in April 1994, which established the World Trade Organization (WTO). The WTO is a chartered multilateral trade organization, charged with continuing the GATT mandate to promote trade, govern trade relations, and limit or prevent damaging trade practices and policies…….

Q. What are international financial flows? Explain the structure of the balance of payments and discuss the basic principles governing recording of the flows.

Answer. The most general description of a country’s balance of trade, covering its trade in goods and services, income receipts, and transfers, is called its current account balance. If the country has a surplus or deficit on its current account, there is an offsetting net financial flow consisting of currency, securities, or other real property ownership claims. This net financial flow is called its capital account balance…….

It is the difference between receipts and payments on account of capital account. Get Ignou Mba MS 45 Solved Assignment. The transactions under this title involves inflows and outflows relating to investments, short term borrowings/lending, and medium term to long term borrowings / lending……

The first is that the structure of the balance of payments is dependent simply on the principles of the double-entry book-keeping. It means that all the inflows of money is put on the credit side and all the outflows of funds are debited; and finally, both sides are balanced…….

Q. What does deficit in the Balance of Payment signify? Is the balance of trade more important than balance of payments? Discuss the components of Balance of payments.

Answer. The balance-of-payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. If all transactions are included, the payments and receipts of each country are, and must be, equal. Any apparent inequality simply leaves one country acquiring assets in the others……

Running a deficit on the current account means that an economy is not paying its way in the global economy. There is a net outflow of demand and income from the circular flow of income and spending……..

Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy………

The balance of payments is divided into two accounts — current account (which includes payments for imports, exports, services, and transfers) and capital account (which includes payments for physical and financial assets)…..

Download Full MS45 Ignou Solved Assignment International Financial Management for July-Dec. Invisible trade would record international buying and selling of services, and sometimes would be grouped with transfer and factor income as invisible earnings…..