International Financial Management
Transcript of International Financial Management
PRESENTATION OF INTERNATIONAL FINANCIAL MANAGEMENT
Presented By : ASHISH KATHIRIYA
Guided By: PRADIP H. GOHIL
VISION INTERNATIONAL INSTITUTE OF MANAGEMENTBHAVNAGAR
CONTENT
MEANINGCURRENCYEXCHANGE RATEFACTOR INFLUENCE EXCHANGE RATE
FOREIGN EXCHANGE TRANSACTION OF COMMERCIAL BANK OF INDIA
CONTENT
MAJOR ACTIVITYFINANCING FOREIGN TRADEEXPORT FINANCEREGULATION RELATING TO EXPORT FINANCE
EURO ISSUED BY INDIAN COMPANY
CONTENT
INTERNATIONAL BOND,EURO & GLOBLE
FOREIGN DIRECT INVESTMENTSOURCE FOR TRADE FINANCEINTERNATIONAL ACCOUNTINGCONCLUSIONBIBLIOGRAPHY
MEANING OF INTERNATIONAL BUSINESS
“International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of
individuals and organizations.”
CURRENCY
Country Currency
USA Dollar
Kuwait Dinar
Saudi Arabia
Riyal
Australia A Dollar
Pakistan P Rupee
Iran Rial
Japan Yen
China Yuan
Country Currency
Russia Ruble
Spain S Peseta
France Franc (Euro)
Mexico M Peso
Oman O Rial
UAE Dirham
UK Pound
Italy Lira (Euro)
THE EXCHANGE RATE IS THE PRICE OF ONE CURRENCY IN TERMS
OF ANOTHER
FACTOR INFLUENCING EXCHANGE RATE
• Supply of and Demand for each Currency
• Interest rate• Balance of payment• Government policy • Labour Market Flexibility• Capital Mobility
FOREIGN EXCHANGE TRANSACTIONS OF
COMMERCIAL BANK OF INDIA
• Nostro Account
• Vostro Account
• The FX market encompasses:– Conversion of purchasing power from one
currency to another; bank deposits of foreign currency; credit denominated in foreign currency; foreign trade financing; trading in foreign currency options & futures, and currency swaps
• No central market place– World-wide linkage of bank currency traders,
non-bank dealers (IBanks, insurance companies, etc.), and FX brokers—like an international OTC market
The Foreign Exchange Market
CONTINUE…
• Largest financial market in the world– Daily trading is estimated to be US$3.21 trillion– Trading occurs 24 hours a day– London is the largest FX trading center
Major Activity
• Borrowing or lending
• Balance of Trade
• Forward contract
• Futures contract
• Interest rate swap
• Currency swap
FINANCING FOREIGN FINANCING FOREIGN TRADETRADE
1.Funds should be available to the exporter at the require time
2.Cost of the fund should be affordable
EXPORT FINANCEEXPORT FINANCE
REGULATION RELATING TO EXPORT FINANCE
• RBI Guideline exchange Control regulation –
FEMA1999
• Trade Control Regulation (Foreign Trade Policy 2004-2009)
• International Chamber of Commerce (ICC)
EURO ISSUED BY INDIAN COMPANY
• Permission for issue
• Pricing of GDRs (Global Depository Receipt)
• Issue of Foreign Currency Convertible Bonds
INTERNATIONAL BOND,FOREIGN,EURO & GLOBLE
• Active Bond markets available to domestic & Foreign investors
• Euro Bond
• Global Bond (Introduce by World Bank in 1989)
Investment made to acquire lasting interest in enterprises operating outside of the economic of the investor
FDI in the World economy
Indian to allow FDI in Food Retail
FOREIGN DIRECT INVESTMENT (FDI)
SOURCES OF TRADE FINANCE
Government Assistance Programs
Eximbank in United States-–Arranges loans, guarantees,
working capital and insurance
Foreign Corporation Insurance Agency
–Protects against default on exports sold under open accounts
CONTINUE…..
Overseas Private Insurance Corporation
–Offers performance bonds
Small Business Administration–Revolving line of credit
BUSINESS ENTERPRISES PROVIDERS OF CAPITAL
(INVESTORS,CREDITORS,AND GOVERNMENT)
RESOURCE RESOURCE USERSUSERS
RESOURCE RESOURCE PROVIDERSPROVIDERS
INFORMATION INFORMATION PROVIDERSPROVIDERS
INFORMATION INFORMATION USERSUSERS
FINANCIAL ACCOUNTING INFORMATIONFINANCIAL ACCOUNTING INFORMATION
$$
ACCOUNTING IN THE INTERNATIONAL BUSINESS• Country differences in Accounting
Standard
• Inflation Accounting
• International Standard International Accounting Standard
Bond Financial Accounting Standard Bond Accounting Aspect of central system
• Accounting Aspect of Control System
CONTENT
MEANINGCURRENCYEXCHANGE RATEFACTOR INFLUENCE EXCHANGE RATE
FOREIGN EXCHANGE TRANSACTION OF COMMERCIAL BANK OF INDIA
CONTENT
MAJOR ACTIVITYFINANCING FOREIGN TRADEEXPORT FINANCEREGULATION RELATING TO EXPORT FINANCE
EURO ISSUED BY INDIAN COMPANY
CONTENT
INTERNATIONAL BOND,EURO & GLOBLE
FOREIGN DIRECT INVESTMENT
SOURCE FOR TRADE FINANCEINTERNATIONAL ACCOUNTING
CONCLUSIONBIBLIOGRAPHY
CONCLUSIONCONCLUSION
Funds require to every company and also they need to support of Government, Banks etc.
Accounting is must in all business transaction in international business and also they need to watch on currency swapping.
BIBLIOGRAPHY
• INTERNATIONAL FINANCIAL MARKETS AND INDIA
BY : H.R. Machiraju• INTERNATE• INTERNATIONAL BUSINESS BY : Charles W.L. Hill Arun K. Jain• EXIM FINANCE BY : K.Parmeswaram (WTI)