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PRESENTATION OF INTERNATIONAL

FINANCIAL MANAGEMENT

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CONTENT

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CONTENT

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CONTENT

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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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CONTINUE..

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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CONTENT

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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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