Professional Documents
Culture Documents
FINANCE
By: NIDHIN PB
INTRODUCTION
The emergence and rise of multinational c ompanies has resulted in high levels of international business activities
ROLL NO: 29
MEANING & SCOPE
Efficiently
produce products in
foreignmarkets
Broadenmarketsand diversify
Earn higher returns
Rise in global companies
Single market
New
Technologies
Competitive advantage
Rising world trade volumes
Increased cross border
capital flow
Changing nature of money
and capital markets
Expanding technical
infrastructure
Online transaction
New technology
Awareness about services offered in other
countries
Global consumers and
global competition
Development of supporting
financial infrastructure
Increased competition at
global level
Domestic companies too
feel the heat
Components of International
Financial Environment
the international monetary system, which is characterized
by the components: the national and reserve currency,
international collective currencies , the conditions of mutual
convertibility, currency parity, exchange rate, national and
international regulatory mechanisms of exchange rates ;
international payments that serve the movement of goods
and factors of production, financial instruments, and the
balance of payments, which reflect all the transactions
related to international payments;
international financial markets and the mechanisms of
trading by specific financial instruments currency, loans,
securities;
international taxation, as the method of mobilization of
funds;
international financial management of TNC, where
international investment, risk management, transnational
financing etc. take the main place
Main functions of
international finance
1) Distribution function, which is the mechanism of
international finance carries cash distribution and
redistribution of world product. Due to the international
finance cash funds are created, distributed and used,
different needs of the world economy are met.
Distribution function is intended to promote the
organization of the balanced and efficient global
production and development of all the sectors of the
world economy with the aim of the most complete
satisfaction of necessities of the world community;
Main functions of
international finance
2) The control function, the general essence of which is
monitoring the production and distribution of global social
product in money form by recording and analyzing its
motion. The result of this function is making decisions on
international finance and development of current and
strategy international financial policy;
3) Regulatory function is associated with the intervention of
international monetary and financial institutions with the
help of finance in the process of production ;
4) Stabilizing function is to create stable conditions for
economic and social relations in the global system.
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