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PRESENTATION OF INTERNATIONAL
FINANCIAL MANAGEMENT
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MEANING OFINTERNATIONAL BUSINESS
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CURRENCY
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Country Currency
USA Dollar
Kuwait Dinar
Saudi Arabia Riyal
Australia A Dollar
Pakistan P Rupee
Iran RialJapan 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)
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FACTOR INFLUENCING
EXCHANGE RATE
Supply of and Demand for eachCurrency
Interest rate
Balance of payment
Government policy
Labour Market Flexibility
Capital Mobility
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FOREIGN EXCHANGE
TRANSACTIONS OF
COMMERCIAL BANK OF INDIA
Nostro Account
Vostro Account
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The FX market encompasses: Conversion of purchasing power from one
currency to another; bank deposits of foreigncurrency; credit denominated in foreign
currency; foreign trade financing; trading inforeign currency options & futures, andcurrency swaps
No central market place
World-wide linkage of bank currency traders,non-bank dealers (IBanks, insurancecompanies, etc.), and FX brokerslike an
international OTC market
The Foreign Exchange Market
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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
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Major Activity
Borrowing orlending
Balance of Trade
Forward contract
Futures contract
Interest rate swap
Currency swap
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FINANCING FOREIGNTRADE
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1. Funds should be available to theexporter at the require time
2. Cost of the fund should be affordable
EXPORT FINANCE
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REGULATION RELATING TO
EXPORT FINANCE
RBI Guideline
exchange Control regulation FEMA1999
Trade Control Regulation
(Foreign Trade Policy 2004-2009)
International Chamber of Commerce
(ICC)
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EURO ISSUED BY INDIAN
COMPANY
Permission for issue
Pricing of GDRs(Global Depository Receipt)
Issue of Foreign CurrencyConvertible Bonds
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INTERNATIONAL BOND,FOREIGN,EURO
& GLOBLE
Active Bond markets available todomestic & Foreign investors
Euro Bond
Global Bond(Introduce by World Bank in 1989)
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Investment made to acquire lastinginterest in enterprises operatingoutside of the economic of the
investor
FDI in the World economy
Indian to allow FDI in Food Retail
FOREIGN DIRECT INVESTMENT (FDI)
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SOURCES OF TRADE FINANCE
Eximbank in United States- Arranges loans, guarantees, working
capital and insurance
Foreign Corporation Insurance Agency Protects against default on exports
sold under open accounts
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Overseas Private Insurance Corporation
Offers performance bonds
Small Business Administration
Revolving line of credit
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BUSINESS ENTERPRISES
PROVIDERS OF CAPITAL
(INVESTORS,CREDITORS,AND
GOVERNMENT)
RESOURCE
USERSRESOURCE
PROVIDERS
INFORMATION
PROVIDERS
INFORMATION
USERS
FINANCIAL ACCOUNTING INFORMATION
$
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CONTENT
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CONCLUSION
Funds require to every company andalso they need to support ofGovernment, Banks etc.
Accounting is must in all businesstransaction in international businessand also they need to watch on
currency swapping.
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BIBLIOGRAPHY
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