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International Finance
International Finance
The emergence and rise of multinational companies has resulted in high levels of international business activities
The emergence and rise of multinational
companies has resulted in high levels of
international business activities. International
business encompasses commercial transactions like
sales, investment and transportation between two
or more companies.
These cross border flows has resulted in world
economy.
EXCHANGE RATE
QUOTATION N
multinationals are the single most largest players
responsible for international business &
international finance.
MNC has numerous kinds of flows between the
parent company , foreign business clients
MNC take decision on the nature of fund movement
Important variables in context of MNCs –
A} mode of transfer of funds-decision regarding
funds like dividends, loans, interest payment
etc.
B} planning for payment schedule.
C} managing the firm value
The earnings of firms engaged in
international business are subject to
fluctuations due to floating exchange rate.
International finance also studies the
techniques of preparing consolidated
financial statements of MNCs.
Like international audit, international
taxations etc.
Diminishing national boundaries
New Technologies
Region FDI FDI
inflows Outflows