Why Is It Important For Study International Financial Management?

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Why is it important to study international financial management? In our globalized world, it is crucial for the international companies understand the complexity of the international financial management that shape the size and the rank of each multinational company in a very aggressive competitive market. 2. How is international financial management different from domestic financial management? International finance treats the financial movements on the global scale, while the domestic finance focuses more on the local or national arena. Three major components that differ international finance from domestic finance: a) Foreign exchange and political risks, b) Market imperfections, and c) Expanded opportunity set. 3. Discuss the three major trends that have prevailed in international business during the last two decades. The three major trends that have prevailed in international business during the last two decades are broken down into the following three steps: • Emergence of globalized financial markets: A rapid integration of international capital and financial markets during the 1980s. • Emergence of the Euro as a global currency: the emergence of the Euro represents one of the most important trends that reshaped the international finance vision, especially in the western countries, such as Europe, the U.S., and Asia. • Trade liberation and economic integration: the expansion of the international and regional trade has increased the world’s demand and demanded more
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