1. How is international financial management different from… 1. How is international financial management different from domestic financial management?2. What are multinational corporations (MNCs) and what economic roles do they play?3. Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard.4. Comment on the proposition that the Bretton Woods system was programmed to an eventual demise.5. In an integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing a global crisis. What kind of measures would you propose to prevent the recurrence of an Asia-type crisis.6. Why would it be useful to examine a country’s balance of payments data?7. What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange?8. Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate.9. Discuss the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market.10. How can the FX futures market be used for price discovery? Accounting Business Financial Accounting FINA 339
