Q.(a) Distinguish between Internal and International Trade. (any 5)

(a) Internal trade is within a country (home currency, no customs, lower risk) whereas international trade is across countries (foreign currency, customs duty, heavy documentation, higher risk). (b) An FCCB is a foreign-currency bond issued abroad by Indian companies, convertible into equity, carrying low fixed interest — a quasi-debt instrument.

In the Tamil Nadu HSC Commerce syllabus, this Part-IV OR question covers international business and international finance. Both alternatives are answered.

(a) Distinction between Internal and International Trade (any five):

(b) Five features of Foreign Currency Convertible Bonds (FCCB):

• Issued in foreign currency: FCCBs are issued by a company in a currency different from its home currency, to raise funds abroad.
• Convertible into equity: They are bonds that can be converted into equity shares or depository receipts of the issuing company after a specified period, at a pre-determined price.
• Fixed rate of interest: Until conversion, they carry a fixed and usually lower rate of interest, reducing the cost of borrowing. …