Question

What is the importance of being educated about international Finance in the world today? Be specific in your response and discuss at least three benefits of this knowledge.

Answer 1

Now a days the world has become a smaller place to live in. Most of the corporation's are expanding their business operations outside and expanding their production facilities and operations worldwide. They now target the international customer base.

Studying international finance helps them to better understand the international market of how businesses carry out operations worldwide. They understand the foreign exchange transactions and the foreign currency risk. They understand ,how to manufacture products and customising them as per the tastes and preferences of the local people abroad. They understand better, how money and capital flows across borders. They understand how to manage the finances of a business and face challenges when they are carrying out operations in more than one country. How to strike a deal in sourcing capital at a cheap rate form foriegn investors and convince them into investing internationally. Studying international finance also makes one competent in manging foreign currency risk and political risks.