International Financial Management

International Financial Management Essay example
Finance & Accounting
Pages 11 (2761 words)
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Contents Executive Summary 2 International Financial Management – An overview 3 International Financial Markets 4 Foreign Currency Risks and Types 5 Exposure to Foreign Exchange Rate Risk 6 Exposure to Interest Rate Risk 8 Foreign Direct Investment and its Management 9 Multinational Capital Budgeting 11 References 12 Executive Summary Multinationals are now focusing more and more towards practicing prudent international financial management.


Hedging plays a very important role in international financial risk management. Cautious foreign direct investment (FDI) decisions and vigilant international capital budgeting is also of prime significance. International Financial Management – An overview The 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. ...
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