International Finance: Applied Frameworks
Utilizing frameworks for managing foreign exchange risk (hedging), international capital budgeting (APV), and global financing decisions for MNCs. ✨
Article Points:
1
International finance applies financial concepts to cross-border transactions and investments.
2
Foreign exchange (FX) risk arises from currency fluctuations (transaction, translation, economic exposure).
3
Hedging tools like forward contracts, futures, and options mitigate transaction exposure.
4
International Capital Budgeting uses Adjusted Present Value (APV) to account for foreign project specificities.
5
Global financing decisions involve choosing sources of funds (internal, Eurocurrency, international bonds/equity) balancing cost, risk, and access.
6
Essential for multinational corporations to optimize capital allocation and manage global financial risk.
Source:
International Finance: Applied Frameworks
International Finance: Applied Frameworks
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Source:
International Finance: Applied Frameworks