Question

Meaning of international financial management

Answer 1

InternationalFinancial Managementis a well-knownterm in today’s world and it is also known as international finance. It means financial management inan internationalbusiness environment. It is different because of the different currency of different countries, dissimilar political situations, imperfect markets, diversified opportunity sets.International Financial Management came into being when the countries of the world started openingtheir doors for each other. This phenomenon iswell known by the name of “liberalization”. Due to the open environment and freedom toconduct business in anycorner of the world, entrepreneurs started looking for opportunities even outside their country boundaries. The spark of liberalization was further aired by swift progression in telecommunications and transportation technologies that too with increased accessibility and daily dropping prices. Apart from everythingelse, we cannotforget the contribution of financial innovations such as currency derivatives; cross-border stock listings, multi-currency bonds and international mutual funds.