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MASTER IN MANAGEMENT

SUBJECT: GLOBAL MARKETING

NAME: ROSE MAY F. SOLERANO

TOPIC: GLOBAL FINANCIAL MANAGEMENT

QUESTIONS:

1. WHAT IS GLOBAL FINANCIAL MAGEMENT?

ANSWER: It is also known as international finance. It is the management of finance in an


international business environment; making money through the exchange of foreign currency. It
examines the investment and financing strategies of multinational corporations.

2. What are the reasons company are motivated to invest abroad?


Answers:
1. Efficiently produced products in foreign markets than that domestically.

2. Obtain necessary raw materials needed for production

3. It broaden markets and diversify

4. Earn higher returns

3. What the risks are in international finance?

ANSWERS: It I economic risk and political risk. Economic risk refers to the countries ability to pay
back its debt. Political risk refers to the political decisions made within a country that might
result in an unanticipated loss to investors.

4. What global factors create increase financial risks for the business?

Answers: Changes in exchange rates, changes in interest rates, non-payment from customers.

5. What is the role of global financial management strategies?

Answers: Reduce the risk and uncertainty associated with global financial transactions, maximize the
returns from overseas sales, reduces the cost associated with buying or borrowing from overseas.

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