Global Financial Management and Human Resource Management

678 Words3 Pages
Global Financial Management: According to reports in 2010, the global financial situation continues to struggle mainly because of the fact that a huge percentage of loans in the current financial books will not be repaid. This has in turn contributed to various challenges on the global financial management as every recovery theory should focus on restoring creditworthiness to the financial sector. One of the challenges that have really affected the global financial management is the fall of the real estate markets. This has been brought by the decrease in the prices of commodities that has contributed to many global businesses making losses instead of profits and increase in unemployment. The other challenge is consumer debt, especially in America and Western Europe in which goods are bought on credit on condition that payments to be done after the sales are through. This becomes challenging because the consumer might either not turn up or run at loss leading to the closure of the business (Johnson, 2011). While the International Monetary Fund has helped investors who have been into business for long periods of time, new investors have found it challenging. Foreign Risk Management: Foreign exchange risk management can be termed as the dangers taken into account while making any transactions in global financial markets. For example, if the US dollar currency is low and a company wants to sell goods to America, the buyer will pay in US dollar. This variation in
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