Question

Introduction to international finance.

Why would one select this concept of International finance for further examination?
Why is it an important aspect of financial management?

Respond to the following two posts,

Below are two participant response you must respond
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Lisa, I believe international finance is important because it’s part of our financial economics. When looking at international finance you are also thinking about exchange rates of currency, the different monetary systems in the world, foreign direct investments, foreign markets and any other financial issues connected with the international financial management. Businesses today are going global more than ever thanks to the internet which includes all major economic functions such as consumption, production and investments. It is vitally important to understand all the areas that
come with international finances and how they could affect your business. Not only does international finances affect our economic functions but also our government. Countries are known to borrow from each other, and it is good to understand how the money is used and the value of the exchange rates. One of the areas we hear most often about are the international and foreign trades which have a huge affect on the growth of economies around the world. Here in the U.S., stock watchers often see what is happening in the foreign markets because ultimately it could trickle to us and affect our market and economy. Proper management and analysis of international finances helps in managing all markets. International finance affects everything we do
so it is important to be informed on what is happening here in the U.S. and around the world.

John, It seems with each passing day our economic ties become more and more intertwined with other countries. We are truly in a global economy. The international markets impact our domestic economy much more that ever before. I think that the international finance component was included because of our global economy. I also think that when a firm is investing in financial instruments international tools are an essential tool in the financial toolbox. I, for one strongly believe in the American Economy, but I still invest a portion of our family′s investments in international funds. Not only is it easy to invest in international economies, but it certainly adds to a well rounded and diversified portfolio of investments. With so many firms doing business across national boundaries, it only makes sense to include the international finance component as a part of this class. It is also important to understand currency exchange principles and exchange rates when a firm is doing
business internationally. The firm also needs to understand tariffs, international tax rates, and other regulations. Again, it seems the inclusion of international finance was a wise addition to this class

Answer 1

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