International Finance: An Introduction Dr Kishor Bhanushali

International Finance Globalized world International economic order Flow of goods and services, labor, technology, money International character of finance The management of financial resources in the context of international business is termed as international financial management Separate discipline of international financial management Rapid expansion and diversity in international transactions Special skill to understand the international aspects of financial management

Global interdependence Growth of international trade Interdependence between countries Development of Information and communication technology Economic liberalization Growth of MNCs Sophistication in international monetary system New financial instruments Network of financial institutions Integration of global market IT services in India GDR & ADR Joint ventures and subsidiaries FIIs and FDI Global financial crisis 2008

International financial management Raising capital needed for business at minimum possible costs Estimating and formulating the financial structure of business Utilizing the capital available to the firm in most effective manner Maximizing the returns Financial analysis, planning and control Flow of fund across national boundaries International finance Difference between national finance and international finance Foreign exchange and foreign exchange risks

Some concepts Foreign exchange Foreign exchange rates Foreign exchange market Currency derivatives : currency futures, currency options and currency swaps Foreign exchange risk and its management: hedging International investments: FDI & FIIs International financial system International monetary system: IMF, World Bank, ADB etc. Balance of Payments

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