Question

Question 1. International finance refers to any transactions that take place crossing two different countries.  

Please try to ellaborate the answer with some details.

Thanks.

Answer 1

International finance refers to financial transactions which occur across National borders. It refers to transactions in which the receipt and transmittance of funds are in two different countries. This definition is valid even if the sender and receiver of funds are the same company or entity. Hence if a company having an Operating office in Japan send money to its us headquarters it will still be an example of international Finance. Another example of international finance is when a Traveller sets up foreign accounts moving money from his own country to Overseas accounts. The Other common example of international finance is purchase sale and trade of goods and services across International borders. Investing in foreign markets such as mutual funds and American depositary receipts are other examples of international Finance