Professional Documents
Culture Documents
Session Objectives
1. Nature and Scope of International Finance 2. Factors responsible fro the fast growth of International Finance Function 3. Why to study International Finance 4. Comparison between the domestic financial Management and International Financial Management. 5. Broad Contours to discuss IFM in present context
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Reducing barriers to foreign trade and promoting global business was done by GATT. More reduction in the Uruguay Round-1993.
It provided enhanced protection for the patents, trademarks and copyrights and established WTO to police the international trading system.
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2. In short, the main reason is interest of several countries in trading with each other in order to maximize their profit and sales and protecting them from being eroded by the competition.
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All this is because of high integration among different units of the firm.
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Ethnocentric are those that adopt home market oriented policy and seldom distinguish between domestic operation and global operation policy. Polycentric firms operate in the foreign country just to cater to the demand in those countries. These follow a host market oriented policy Geocentric firms maintain a balance between the home market and host market oriented policies. A MNC is different form a TNC. IN the former decision making is decentralized and activities of the firm are not strictly coordinated. In the latter the global business activities of the firm are perfexctly configured, coordinated and controlled so as to achieve global competitiveness.
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2.
3. 4. 5.
6.
7. 8.
Various markets
Various currencies Easy access to domestic capital markets as well as unregulated international capital a markets by the MNCs.
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Topics to study this chapter from the book- Please start reading.
1. Factors leading to the emergence of International Finance.
1. Detailed study of Globalization its importance, impact on the development of world
economy
2. 3. Role of FDI Detailed study Role of Multinational Companies
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2. 3.
4. 5.
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Distinguishing features or major dimensions of international finance Modes or Methods of doing international Business
Importance of International Finance.
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The Session ends here Next Session Chapter-2 - International Monetary System- Read it from the book and come prepared
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