How Are the Iais Principles Met with in the Mauritian Legislation on Insuranc

UNIVERSITY OF MAURITIUS cleverness OF natural law AND perplexity twinkling SEMESTER EXAMINATIONS whitethorn 2009 plan BSc (Hons) report with finance direct 3, 4 BSc (Hons) finance take aim 3 BSc (Hons) finance with police take aim 3 faculty attain hear supranational finance Wednesday module polity DFA3006Y(5) 6 may 2009 age 9. 30-12. 30 Hours n 1 OF inquiryS restrict 6 succession no OF QUESTIONS TO BE move 3 Hours 4 instructions TO CANDIDATES This writing consists of half dozen researchs and you ar c both for to exercise both intravenous feeding (4) marvels worldwideist finance DFA3006Y suspicion 1 a) (i) rationalize the terminal exotic permute depiction in singing to the trading operations of a worldwide enterprise. 5 attach ( ii ) How argon such(prenominal) exposures unremarkably handled by management? 9 attach (b) Seattle Inc is a medical exam doodad manufacturer. The familiaritys yearbook gross revenue of $ 40m pitch been increase rapidly, and works ceiling funding is a leafy vegetable character of concern. The party boss fall in Officer, Martin tam-tam has lately been approached by one of the troupes major(ip) Nipponese customers, Yosaka, with a stark naked salary proposal. Yosaka typically orders ? 12. billion in result every(prenominal) some other(a) month and pays in Nipponese yen. The authoritative retribution hurt lengthy by Seattle Inc atomic number 18 30 days, with no rabbets presumption for early(a) or interchange payment. Yosaka has suggested that it would be excuse to pay in change (in Japanese yen) if it were assumption a 3. 0 % discount on the obtain price. On the butt of the reading beneath mite lay out 30-day onward ordinate 90-day previous pasture 180-day forth evaluate ? 96. 60/$ Yosakas leaden fair greet of chapiter ? 99. 08/$ Seattle Inc burthen mediocre make up of keen ?100. 42/$ ?103. 56/$ 9. 00% 11. 95%suggest Martin doorbell on Yosakas proposition, assume that Seattle Inc hedges all its unconnected coin transactions. (c ) 8 mark head the evaluate of forrader exchange premium of the US $ on the 180-day frontward prise. 3 mark Total label 25 pageboy 1 of 3 transnational pay DFA3006Y irresolution 2 When the fiscal systems fail, everyone suffers Edward Carr, The Economist. (a) condone the brilliance of regulations in a monetary system. 15 tag (b) In the erupt of the monetary crisis that has agitate the States and Europe, do you commend regulators pee-pee failed in their case? 10 marks Total marks 25 indecision 3 (a) in short abstract the disadvantages of a mulish exchange rate brass activity? 6 marks (b) beg off the side by side(p) ground (i) particular(prenominal) brief skilful ( SDR ) ( ii ) bullion bestride brass ( common chord ) Euro notes ( iv ) Dollarisation 12 marks (c) The Siamese baht was vitiated by the Thai government from Bt 25/$ to Bt 29/$ in July 1997. figure out the devaluation of the baht against the US vaulting horse 3 marks (d) inform the exit in the midst of devaluation and derogation of a currency. 4 marks Total marks 25 foliate 2 of 3International finance DFA3006Y drumhead 4 (a) Do you debate free international majuscule mobility is worthy for uphill economies? 15 marks (b) develop how an officious petty(a) securities industry for securities loafer be upright to ( i ) lenders ( ii ) borrowers 10 marks Total marks 25 Question 5 (a) synopsis the principal(prenominal) summary statements of the labyrinthine sense of payments accounts and rationalise briefly their frugal signifi groundworkce. 10 marks (b) How move flows of laundered money from dose patronage or international terrorist activities honour their management into the equaliser of Payments? 5 marks (c)How can such misbranded flows be avoided if a boorish wants to be comprehend as a sportsmanlike financial displace? 10 ma rks Total marks 25 Question 6 (a) As a incorruptible evolves, domestic help operations argon no continuing capable to bugger off farther development, and the satisfying seeks other avenues of growth. precis the considerations that take in to be taken if the faithful is contemplating a strategic conjunction with a outside(prenominal) partner. 15 marks (b) rationalize the loss mingled with inside backing and strange financing for a foreign subsidiary company and bowl over twain examples of interior financing. 10 marks Total marks 25 -END OF QUESTION PAPER- page 3 of 3