Month: March 2022

Here we will consider the bank in two roles: (1) as the institution financing the importer, and (2) as the exporter’s bank. 1. Imports under Documentary Credit (DC) Before undertaking to establish a DC for an importer, the bank should Read More …

When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These Read More …

Due to current changes brought by globalization and trade liberalization, international finance is useful because it helps to: 1. Understand the consumption pattern of a particular economy 2. Understand where and how to invest 3. Understand the production

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, Read More …

1. Ratios are computed at a specific point in time. 2. Ratios ignore the effect of inflation in performance which is a vital part in the daily business management 3. The comparison between firms is often done even for firms Read More …

1. for evaluating the ability of the firm to meet its short term financial obligation as and when they fall due 2. To interpret the performance of the firm over the period covered by the financial statements. 3. For comparison Read More …