WHAT IS INTERNATIONAL FINANCE?

INTERNATIONAL FINANCE

FOLLOW TO ME THAT LINK.

 

 https://www.blogger.com/follow.g?view=FOLLOW&blogID=4060652467429149727

INTERNATIONAL FINANCE:-is the examination of institutaions, practices and analysis of cash flow that move from one country to another. There are several prominent disitinctions b/t international finance and its purely domestic counter part, but the most important one is exchange rate risk. Exchange rate risk refers to the uncertainity injected into any international finacial decision that results from changes in the price of one country currency's per unit of another country's currency.

NATURE OF INTERNATIONAL FINANCE

• a...... FORIEGN EXCHANGE RISK.
• b...... POLITICAL RISK.
• c...... EXPANDED SETS. 
• d...... MARKET IMPERFACTION.

PRINCIPLES OF INTERNATIONAL FINANCE 

FINANCIAL MANGER HAVE THREE MAJOR PRINCIPLES 

• a..... FINACIAL PLANING & CONTROL.
• b..... THE ACQUISATION OF FUNDS .
• c...... THE ALLOCATION  OF FUNDS .

SEVEN PRINCIPLES ARE FOLLOWS BY GIVIEN GLOBAL FINANCE.

• RISK-RETURN TRADE OFF.
• MAARKET IMPERFACTIONS.
• PORTFOLIO EFFECT.
• COMPERTATIVE ADVANTAGE.
• INTERNATIONALISATION ADVANTAGE.
• ECNOMIES OF SCALE.
• VALUATION.

IMPORTANCE OF INTERNATIONAL FINANCE.

• EXPANSION OF MULTINATIONAL COMPANIES.
• COMPLEX FINALCIAL DECISION
• LENDING OF FUNDS.

KEY ISSUE WITH INTERNATIONAL FINANCE.

1. INTERRELATIONSHIPS B/T RELEVENT ENVIROMENTAL VARIABLES ARE CORPORATE RESPONSE.
2. ADAPT FINANCE TO FIRMS OWN STRATEGIC POSTURE.
3. TO TAKE IN STRIDE PAST FAILURE AND MISTAKE.
4. TO DESIGN SPEECIFIC SOLUTION.
5. KNOWLEDGE OF MACRO-ECONOIC ENVIROMENT
6. CULTURE
7. TECHNOLOGY

 

THANK YOUR FRIENDS