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EMERGENCE OF GLOBALIZED

FINANCIAL MARKETS AND


MNCS



 Emerged on 1980s and 90s
 1980 Japan deregulated its foreign exchange market
 1985 the Tokyo Stock Exchange
 1986London Stock Exchange (LSE)
FIVE METHODS OF INTERNATIONAL FINANCIAL
ACTIVITIES


 Licensing
 Franchising
 Joint ventures
 Establishing new foreign subsidiaries
Challenges for the International
Financial Management

 Risk management challenges
 Diverse economic environment
 Dynamic foreign exchange rates
 Banking regulation
 Capital budgeting
 Economic sanctions
 Political upheaval
 Civil unreast
International finance
manager require to
 Identify the significant economic and financial
variable
 Meet the changes in various economic financial
variables
 Grab the opportunities provided by the market
 Fluctuation in foreign exchange rates
 Cultural problem
 Technology change
 Availability of infrastructure

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