Question 1

Identify and discuss five internal hedging techniques that might be used by a firm to minimise foreign exchange exposures. Include in your discussion the advantages and disadvantages associated with each type of technique. (15 marks)

Question 2

Mauritius is a Member of the WTO since its foundation in 1995. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT). Monitoring of national trade policies for all Members is an important activity of the WTO. This exercise is carried out through the Trade Policy Review Mechanism (TPRM). The frequency of each country is reviewed varies according to its share of world trade. As a developing country, Mauritius is reviewed every 6 years. Critically evaluate the effectiveness of the WTO. (15 marks)