Depth Learning about International Finance
International finance, also known as international financial management, is a branch of finance that focuses on the financial interactions and transactions between countries. It encompasses various aspects of financial management and analysis in a global context. Here are some key components of international finance: Exchange Rates: Currency Exchange Rates: The value of one currency in terms of another. Exchange rates can fluctuate due to various factors such as economic conditions, interest rates, and political stability. Currency Risk: The potential for financial loss due to changes in exchange rates. Companies and investors use various strategies to manage this risk, including hedging. International Trade and Investment: Foreign Direct Investment (FDI): Investments made by a company or individual in one country in business interests in another country. This could involve setting up a subsidiary or acquiring assets in the foreign country. Portfolio Investment: ...