International Finance: Core Concepts
An overview of fundamental principles for managing financial decisions in a global context, focusing on key differences from domestic finance and primary risks. ✨
Article Points:
1
International finance studies global financial interactions, investments, and currency risks.
2
Key differences from domestic finance include foreign exchange risk, political risk, and market imperfections.
3
Foreign exchange (FX) risk comes in three forms: transaction, translation, and economic exposure.
4
Political risk involves adverse government actions affecting international investments.
5
Interest rate differentials across countries create unique opportunities and risks.
6
MNCs must manage these complexities for global capital allocation and financial optimization.
Source:
International Finance: Core Concepts
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Source:
International Finance: Core Concepts