Professional Documents
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Presented By Dheeraj
INTERNATIONAL MONEY
INTRODUCTION
International Financial Management also known as International Finance is a popular concept which means management of finance in an international business environment, it implies, doing of trade and making money through the exchange of foreign currency. The International Financial activities help the organizations to connect with international dealings with overseas business partners- customers, suppliers, lenders etc. It is also used by Government organization and Nonprofit institutions.
INTERNATIONAL FINANCIAL
TRANSACTIONS
in achieving same efficiency and effectiveness in all markets, hence without IFM sustaining in the market can be difficult. reasons
MONEY
Money is defined as anything
that is generally accepted in payment for goods and services or in the repayment of debt. the money supply to changes in aggregate economic activity and the price level.
channel funds from individuals with surplus funds to those desiring funds but have shortage of it.
to earn a decent return on their money while at the same time avoiding risk; e.g., banks, insurance companies, finance companies, investment banks, mutual funds, brokerage houses,
FINANCIAL INSTRUMENTS
Securities is a name that commonly refers to financial instruments
one party to receive payments and/or a share of assets from another party; e.g., loans, stocks, bonds.
FINANCIAL MARKETS
and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect;
i) Overdrafts and loans. The security for these is the documents of title to the goods, and evidence that goods have been consigned to, or to the order of, a bank overseas. ii) Negotiations of outward collections Financing by a bank of export documents is normally on the understanding that the transaction is with recourse to the exporter, in the event of a default. Banks tend to ask for irrevocable authorization enabling them to dispose of the goods and retain the sale proceeds. iii) Documentary letters of credit. In some cases there may be provision for pre-shipment finance. By having a "red clause" inserted in a credit a beneficiary is able to receive advance payments. Acceptance and discount facilities are also available.
CENTRAL BANKS