write a short note on international source of finance.
Answers
International Financing is also known as International Macroeconomics as it deals with finance on a global level. There are various sources for organizations to raise funds. To raise funds internationally is one of them. With economies and the operations of the business organizations going global, Indian companies have an access to funds in the global capital market.
International finance helps organizations engage in cross-border transactions with foreign business partners, such as customers, investors, suppliers and lenders. Various international sources from where funds may be generated include the following.
(i) Commercial Banks
Global commercial banks all over provide loans in foreign currency to companies. They are crucial in financing non-trade international operations. The different types of loans and services provided by banks vary from country to country. One example of this is Standard Chartered emerged as a major source of foreign currency loans to the Indian industry. It is the most used source of international financing.
(ii) International Agencies and Development Banks
Many development banks and international agencies have come forth over the years for the purpose of international financing. These bodies are set up by the Governments of developed countries of the world at national, regional and international levels for funding various projects. The more industrious among them include International Finance Corporation (IFC), EXIM Bank and Asian Development Bank.
(iii) International Capital Markets
Emerging organizations including multinational companies depend upon fairly large loans in rupees as well as in foreign currency.
International source of finance.
Explanation:
Finance which is very essential for the survival of a business can be accumulated from domestic as well as international sources. there are various sources of international finance such as-
- from security market of other country
- Various banks of other nation including international bank
- Government of other nation or various government agencies.
International finance is used by a firm because it has various advantages such as gives access to international market and brings new learning.
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Internal sources of finance
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