International Financial Management - Essay Example

Only on StudentShare

Extract of sample
International Financial Management

The paper tells that еhe world is now a global village – a phenomenon which can be interpreted as a fact that the advancement in communication and technology has integrated the various economies on the globe. A brief analysis of the current economic scenario of any country would reveal that it is, in one way or the other, dependent on the social and economical activities of the other countries. A downward plunge in the New York stock exchange is likely to send shockwaves all across the globe which can be felt in financial market as further as Far East countries. Recently, when the cherished credit rating of United State of America was downgraded to AA+ from AAA, it caused turmoil at a global stage especially in the European countries. All the giant economies such as China and India were badly affected. The economies are have become interlinked in this era due to the fact that now the firms are indulging in international trade and have started exploring markets outside their place of origin. Companies such as HSBC holdings, General Electric, ExxonMobil, British Petroleum and Toyota Motor have two things in common. First, they are the leading and biggest multinationals in the world and second, they all practice prudent international financial management. From a theoretical point of view, the firms engage in international trade in order to obtain comparative advantage which allows the firms to penetrate the foreign markets. Other popular explanations for the firms indulging in the international trade are the product cycle theory and imperfect market theory. ...Show more

Summary

This research begins with the brief overview of international financial management. There are several ways through which a firm can participate in international business. The most common methods are international trade; licensing; franchising; joint ventures; acquisition of companies; foreign subsidiary…
Author : dubuqueabbie
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"International Financial Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Management in Multinational Organizations
This would involve taking sensible investment as well as financing decisions that would add value to the business. One of the core reasons for concentrating on shareholder wealth is that the businesses that are failed to do so may be taken over by other companies.
10 pages (2500 words) Research Paper
International Financial Management
7 pages (1750 words) Essay
International financial management
Whereas the spot (or nominal) exchange rate refers to the present price of a foreign exchange, a forward exchange rate refers to the future price of foreign exchange at a specified date (Bhole, and Mahakud, 2009). 2. Introduction The foreign exchange market involves the buying and selling of national currencies (Ajami, 2006).
9 pages (2250 words) Essay
International financial management
USD 5,423 Ans-5) = 1.800 – 1.7800 = 0.02 = 0.02 * 90/365 = 4.4% on discount Ans-6) (d). Translation Risk can be avoided by matching the currency of an asset with the currency of an equivalent liability Ans-7) (c). Netting reduces currency conversion costs within the Group Ans-8) (b).
4 pages (1000 words) Essay
International Financial Management
Wall-Mart being Multinational Corporation has invested significantly in the international markets with core objective of growth. Recently closed fiscal year accounted around 39.2 percent of the Wall-Mart’s resources (in terms of capital expenditure) invested in international portfolio.
10 pages (2500 words) Essay
International Financial Management
Minimizing problems 13 6. Conclusion 14 Reference List 16 1. Introduction International companies spread around the world carry out transactions with foreign counterparts which run into millions of dollars. A significant portion of the cross border transaction constitutes foreign direct investment (Achrol, 2011).
10 pages (2500 words) Essay
International Financial Management
This report analyses the possible effects that would accrue if the United States takes action to reduce its current account deficit, given that currently, all water pumps are manufactured in Europe. It also analyses the effects of devaluation of the Dollar.
10 pages (2500 words) Assignment
No need for topic!
According to the Financial Policy Committee (7), which publishes the Financial Stability Report, the economic recovery in the world’s advanced economies continues to be
4 pages (1000 words) Case Study
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT