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)