BENEFITS OF DOCUMENT
DESCRIPTION
Multinational Financial Management
Lecture Outline
1. Factors that make multinational financial management different
2. Exchange rates and trading
3. International monetary system
4. International financial markets
5. Specific features of multinational financial management
6. What is a multinational corporation?
7. Why do firms expand into other countries?
8. What is a cross rate and exchange rate risk?
9. Currency Appreciation and Depreciation
10. What is a convertible currency?
11. What is the difference between spot rates and forward rates?
12. What is interest rate parity?
13. Impact of Arbitrage Activities
14. What is purchasing power parity?
15. What impact does relative inflation have on interest rates and exchange rates?
16. To what extent do capital structures vary across different countries?
17. International Cash Management
18. Multinational Capital Budgeting Decisions
19. Multinational Credit Management
20. Multinational Inventory Management
International financial management, also known as international finance, is the management of finance in an international business environment; that is, trading and making money through the exchange of foreign currency. The international financial activities help the organizations to connect with international dealings with overseas business partners- customers, suppliers, lenders etc. It is also used by government organization and non-profit institutions.
Proper management of international finances can help the organization in achieving same efficiency and effectiveness in all markets, hence without IFM sustaining in the market can be difficult.
Companies are motivated to invest capital in abroad for the following reasons
1. Efficiently produce products in foreign markets than that domestically.
2. Obtain the essential raw materials needed for production.
3. Broaden markets and diversify
4. Earn higher returns
5. Foreign investment
Foreign currency, market imperfections, enhanced opportunity sets and political risks are four broader heads under which IFM can be differentiated from financial management (FM). The goal of IFM is not only limited to maximization of shareholders but also stakeholders.
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Source: Best Practices in Financial Management PowerPoint Slides: Multinational Financial Management PowerPoint (PPTX) Presentation, UJ Consulting
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