international finance

Topics: Investment, Macroeconomics, International economics Pages: 2 (925 words) Published: April 20, 2015


International Finance is an area of financial economics that deals with monetary interactions between two or more countries, concerning itself with topics such as currency exchange rates, international monetary systems, foreign direct investment, and issues of international financial management including political risk and foreign exchange risk inherent in managing multinational corporations. OR

International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. OR
International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. International finance examines the dynamics of the global financial system, international monetary systems, balance of payments, exchange rates, foreign direct investment, and how these topics relate to international trade

International macroeconomics (or international finance) as a subject covers many topical issues. What has happened (what will happen) to the dollar? Is the current account deficit too large? Should China devalue its Yuan? Should it first liberalize financial flows? Should Sweden give up its currency to join the euro? Should emerging market economies liberalize their financial markets? Is this good for world economic growth, or a source of instability? How, if at all, should we reform the IMF? What about globalization? These are interesting questions. To answer them we need to learn some international finance. What is this field about?

As with international trade, international macro is the result of the fact that economic activity is affected by the existence of nations. If there were no national economies then we would not have this field. If there was no international trade we would not need international...
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