CHAPTER 1: INTRODUCTION TO
INTERNATIONAL FINANCE
1. Introduction to International finance
2. Financial instruments
3. International financial market
1. Introduction to International finance
2. Financial instruments
3. International financial market
1. Introduction to International finance
1.1. Why is International Finance Important?
219/12/10 B02013 - Introduction to
International finance
Why is International Finance Important?
Companies (and individuals) can raise funds,
invest money, buy material, produce goods and
sell products and services overseas.
With these increased opportunities comes
additional risks. We need to know how to identify
these risks and then how to control or remove
them.
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Companies (and individuals) can raise funds,
invest money, buy material, produce goods and
sell products and services overseas.
With these increased opportunities comes
additional risks. We need to know how to identify
these risks and then how to control or remove
them.
19/12/10 B02013 - Introduction to
International finance
1.2. What is different about international
Financial Management?
1.2.1. Culture, history and institutions
1.2.2. Corporate governance
1.2.3. Foreign Exchange Risk
1.2.4. Political Risk
1.2.5. Market Imperfections
1.2.6. Expanded Opportunity Set
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1.2.1. Culture, history and institutions
1.2.2. Corporate governance
1.2.3. Foreign Exchange Risk
1.2.4. Political Risk
1.2.5. Market Imperfections
1.2.6. Expanded Opportunity Set
19/12/10 B02013 - Introduction to
International finance
2. Financial instruments:
• Cash
• Shares
• Bonds
• Other cash instruments such as loans and
deposits
• Derivative instruments
• Cash
• Shares
• Bonds
• Other cash instruments such as loans and
deposits
• Derivative instruments
519/12/10 B02013 - Introduction to
International finance