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Mention the importance of international financial management.

Mention the importance of international financial management.

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Answer #1

Financial system in United States is an international financial system from the India’s view. The mean & objective of both domestic & international financial management remains same but dimensions & dynamics broaden drastically.

Importance of international financial management.

Compared to national financial markets international markets have a different shape and analytics. Management of international finances may help organization in achieving same efficiency & effectiveness in all markets; hence without IFM sustaining in the market may be difficult.

Companies are motivated to invest the capital in abroad for following reason

  • Efficiently produce products in foreign markets than that domestically.
  • Obtain the essential raw materials needed for production.
  • Broaden markets and diversify
  • Earn higher returns
  • foreign investment
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