Question

Advantages of international financial management

Answer 1

Answer:

Explanation:

• Access to capital markets across the world enables a country to borrow during tough times and lend during good times.

• It promotes domestic investment and growth through capital import.

• Worldwide cash flows can exert a corrective force against bad government policies.

• It prevents excessive domestic regulation through global financial institutions.

• International finance leads to healthy competition and, hence, a more effective banking system.

• It provides information on the vital areas of investments and leads to effective capital allocation.