Introduction to international finance. Why would one select this concept of International finance for further examination? Why is...

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Finance

Introduction to international finance.

Why would one select this concept of International finance forfurther examination?
Why is it an important aspect of financial management?

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Lisa, I believe international finance is important because it’spart of our financial economics. When looking at internationalfinance you are also thinking about exchange rates of currency, thedifferent monetary systems in the world, foreign directinvestments, foreign markets and any other financial issuesconnected with the international financial management. Businessestoday are going global more than ever thanks to the internet whichincludes all major economic functions such as consumption,production and investments. It is vitally important to understandall the areas that
come with international finances and how they could affect yourbusiness. Not only does international finances affect our economicfunctions but also our government. Countries are known to borrowfrom each other, and it is good to understand how the money is usedand the value of the exchange rates. One of the areas we hear mostoften about are the international and foreign trades which have ahuge affect on the growth of economies around the world. Here inthe U.S., stock watchers often see what is happening in the foreignmarkets because ultimately it could trickle to us and affect ourmarket and economy. Proper management and analysis of internationalfinances helps in managing all markets. International financeaffects everything we do
so it is important to be informed on what is happening here in theU.S. and around the world.

John, It seems with each passing day our economic ties becomemore and more intertwined with other countries. We are truly in aglobal economy. The international markets impact our domesticeconomy much more that ever before. I think that the internationalfinance component was included because of our global economy. Ialso think that when a firm is investing in financial instrumentsinternational tools are an essential tool in the financial toolbox.I, for one strongly believe in the American Economy, but I stillinvest a portion of our family?s investments in internationalfunds. Not only is it easy to invest in international economies,but it certainly adds to a well rounded and diversified portfolioof investments. With so many firms doing business across nationalboundaries, it only makes sense to include the internationalfinance component as a part of this class. It is also important tounderstand currency exchange principles and exchange rates when afirm is doing
business internationally. The firm also needs to understandtariffs, international tax rates, and other regulations. Again, itseems the inclusion of international finance was a wise addition tothis class

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