Archive | International Finance

Significance of International Finance

International Finance is related to business decisions such as asset selection, resource allocation and financial management. 1. For Business Firms: Every firm faces the four important decision-making areas in financial management. These are: i. Investment decision ii. Financing decision iii. Working capital management decision iv. Dividend decision. Firms with a presence in different factor and product markets have to grapple [...]

By |2017-12-07T08:48:24+05:30December 7, 2017|International Finance|Comments Off on Significance of International Finance
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Translation of Financial Statements | International Finance

Each overseas affiliate prepares its profit and loss statement and balance sheet, in its measurement currency. There are three aspects relating to translation. Currency for Translating the Affiliates' Financial Statements: The functional currency of MNC affiliates is the currency of the primary economic environment of the affiliate. In some countries—such as the USA—the accounting standard relating to translation prevents affiliates [...]

By |2017-12-07T08:48:22+05:30December 7, 2017|International Finance|Comments Off on Translation of Financial Statements | International Finance
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