BUS401 MODULE2 CASE, SLP, TD
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Module 2 - Home
International Financial Management
Modular Learning Outcomes
Upon successful completion of this module, the student will be able to satisfy the following outcomes:
•Case ◦Identify and explain the essentials of foreign exchange, global financial markets, hedging & financial risk management.
◦Understand the unique aspects of financial management within a multinational corporation.
•SLP ◦Identify the main features of the economic and financial environment within a given country.
◦Analyze and discuss the impact of the economic and financial environment on the ease of doing business within a country.
•Discussion ◦Analyze the impact of international events on international financial management.
Module Overview
Global financial management has never been more important than it is today. "Globalization", the integration of world markets, and the integration of multi-national corporations, makes the role of a financial manager much more challenging.
Financial management refers to all decisions regarding cash flow. Similar to all other functions in a company, global financial management adds new layers of complexity to domestic financial management.
The global business aspects that affect financial management are:
•international legal systems
•international financial methods
•international and regional stock markets
•different interest rates
Factors affecting global companies are:
•exchange rates
•stock and commodity prices
•hedging
Environmental concerns, changing and often radically different regulatory practices, different financial standards, and the like, all contribute to the complexity of managing financial matters in the global economy.
The conditions, legal systems, and rules and regulations for international businesses often vary dramatically from those in the USA. Therefore, international firms have to strengthen their international financial management. The responsibility for financial management rests with:
•the treasurer
•the cash manager
