Chapter 4

Question 1

is the strategic management of financial activities across national borders.

Answer 1

International financial management

Question 2

entails overseeing global financial operations such as investing, financing, and risk management.

Answer 2

International financial management

Question 3

study of monetary interactions between two or more countries, focusing on areas such as foreign direct investment and currency exchange rates.

Answer 3

International financial management

Question 4

– is an art and science of handling and managing monetary resources

Answer 4

Finance

Question 5

is the activity concerned with planning, raising, controlling and administering of funds used in the business.

Answer 5

Financial Management
( Gauthman and Dougal)

Question 6

DISTINCTION AMONG INTERNATIONAL AND DOMESTIC FINANCIAL MANAGEMENT

Answer 6

Outside exchange
Political hazard
Market in perfection
Improved opportunity set

Question 7

Problems such as importing and exporting

Answer 7

Outside exchange

Question 8

Conflict between two countries changes of presidents and policies tariffs and trades

Answer 8

Political hazard

Question 9

Risk that an investment return to the could suffer as a result of political changes or instability in a country

Answer 9

Political hazard

Question 10

Perfect competition doesn’t exist

Answer 10

Market imperfection

Question 11

isa step-by-step approach to meet one’s life goals.

Answer 11

Financial planning

Question 12

acts as a guide as you go through life’s journey.

Answer 12

financial plan

Question 13

What Are the 7 Steps of Financial Planning?

Answer 13

Step 1: Understanding the Client’s Personal and Financial Circumstances

Step 2: Identifying and Selecting Goals

Step 3: Analyzing the Client’s Current Course of Action

Step 4: Developing the Financial Planning Recommendation(s)
Step 5: Presenting the Financial Planning Recommendations

Step 6: Implementing the Financial Planning Recommendation(s)

Step 7: Monitoring Progress and Updating

Question 14

FEATURES AND GOALS OF INTERNATIONAL FINANCIAL MANAGEMENT

Answer 14

Foreign exchange risk
Political risk
Expanded opportunity sets
Market imperfections

Question 15

refers to the losses that an international financial transaction may incur due to currency fluctuations.

Answer 15

Foreign exchange risk

Question 16

can also affect investors, who trade in international markets, and businesses engaged in the import/export of products or services to multiple countries.

Answer 16

Foreign exchange risk

Question 17

Ranges from the risk of loss (or gain) from unforeseen government actions or other events of a political character such as acts of terrorism to outright expropriation of assets held by foreigners.

Answer 17

Political Risk

Question 18

Firms can locate production in any country or region of the world to maximize their performance and raise funds in any capital market where the cost of capital is lowest.

Answer 18

Expanded Opportunity Sets

Question 19

variety of barriers still hamper free movement of people, goods, services, and capital across national boundaries.

Answer 19

Market Imperfections

Question 20

These barriers include legal restrictions, excessive transaction and transportation costs, and discriminatory taxation.

Answer 20

Market imperfection

Question 21

which of present various functions and impediments preventing markets from functioning perfectly, play an important role in motivating MNCs to locate production overseas.

Answer 21

Market imperfections

Question 22

GOALS OF INTERNATIONAL FINANCIAL
MANAGEMENT

Answer 22

The main goal of international Financial Management include ensuring an uninterrupted supply of funds for the business activities of the organization and its optimum utilization so as to generate the highest possible returns for the business.

Question 23

Basic Goals

Answer 23

Wealth Maximization of Shareholders.

Profit Maximization.

Question 24

Secondary Objectives

Answer 24

Optimum Rate of interest.

Foreign exchange risk management.

Political risk management.

Proper tax planning.

Effective inflation risk management.

Maximization of Shareholders value.

Question 25

IMPORTANCE OF IMF

Answer 25

It is, be that as it may, the center factor to fruitful business tasks. Cash is overall oil that keeps the nearby and worldwide endeavour dynamic

Question 26

SCOPE OF INTERNATIONAL FINANCE MANAGEMENT

Answer 26

Investment Decisions Financial Decisions Dividend Decisions

Question 27

Investment in Short Term & Long Term Projects

Answer 27

Investment decisions

Question 28

Decision relation to Funding of the Projects

Answer 28

Financial decisions

Question 29

This decision relates to how much of the earnings to be distributed as dividends? How much to be kept as retained earnings?

Answer 29

Dividend decisions

Question 30

INTERNATIONAL FINANCIAL INSTITUTIONS

Answer 30

International financial corporation International monetary fund World trade organization World bank

Question 31

organizations established to facilitate global economic cooperation, provide financial assistance, and support the development of member countries.

Answer 31

International financial institutions

Question 32

is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.

Answer 32

International Finance Corporation (IFC)

Question 33

aims to ensure global financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. It provides loans and financial assistance to member countries facing balance of payments problems.

Answer 33

International monetary fund

Question 34

is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and enforce the rules that govern international trade.

Answer 34

World Trade Organization

Question 35

comprises five institutions, with the two main entities being the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The World Bank offers financial and technical assistance to developing countries for developmental projects, infrastructure, health, education, and other initiatives to reduce poverty.

Answer 35

World Bank