Overview Of

International Finance

Submitted by:
Rajni Vashisht
8201
International Finance
 Benefits
• Access to capital market.
• Promotes domestic investment.
• Worldwide cash flows.
• Prevents excessive domestic regulation.
• Leads to healthy system.
• Provides information on vital areas.
 Regulatory Global Bodies
• International Financial Corporation (IFC)

• International Monetary Fund (IMF)

• World Bank
Growth of International Trade
 Finance Functions
Divided into 2 sub functions
1) Controller.
2) Treasurer.
 Controller
• External reporting.
• Financial and management accounting.
• Tax planning and management.
• Budget planning.
• Management information system.
• Account receivables.
 Treasurer
• Financial planning analysis.
• Cash management.
• Investment financing.
• Investment decisions.
• Risk management
 Role of international financial
manager
• Forecasting.
• Management of assets.
• Management of liabilities
• Exchange risk management.
• Performance evaluation and control.
 Challenges for the finance
manager
• To keep upto date with significant
environment changes
• To understand and analyse the complex
inter relationships between relevant
environmental variables and corporate
variables
• To be able to adapt the finance function to
significant changes in the firm’s own
strategic posture.
• Economic performance and economic
conditions of different countries.

• Foreign exchange risk management.

 Objectives Of The Firm
The objective of the management of a firm
is to maximise the current value of the
shareholder’s wealth i.e the current market
value of the firm’s outstanding equity
shares.
 CONCLUSION
To sum up we can say that international
financial management is highly complex
and risky and hence challenging. Today
financial management has to be
international and finance manager needs
to understand the fundamentals of
international finance if he has to succeed.