International finance or international macroeconomics is a branch of financial economics that deals with the monetary transactions and economic relations between two or more countries. International finance deals with international financial management issues like monetary systems, currency exchange rates, foreign direct investments and global financial systems. International macroeconomics considers the economy as a whole instead of individual parts that makes up the economy.
Having knowledge on international finance is critical for any business or country seeking to maximize gains and minimize loses through international trading. It is thus important for students pursuing business management and economics to have a deep understanding on different issues pertaining international macroeconomics. We are dedicated at providing high quality international finance assignment help that will improve your knowledge and understanding about international macroeconomics.
Scope of international finance
International finance consists of three key interrelated concepts.
- International finance management- pertains to the key issues considered by companies and players in the international markets when making decisions. Strategic international finance management is key towards survival in the tough international business.
- International financial economics- it is the application of economics theories and policies in the international markets. International financial economics explains the origin of international trade and associated effects.
- International financial markets- refers to the tools used in international financial investments, international securities market, international banking and foreign exchange markets.
Reasons for investment in international finance
Different theories have been put forward trying to explain why economic entities take part in financial markets. The main reasons for engaging in international finance however are:
- To make a higher return
- To expand the market territories and diversify market portfolio
- To acquire necessary raw materials for production
- To supply the foreign market with surplus commodities for profits
Importance of international finance
Just like any other form of trade, the aim of international finance is to facilitate the transfer of resources from a region with surplus production to a region with scarcity. The seller in this case aims at maximizing profits while the buyer aims at minimizing costs and obtaining utility. An efficient market will ensure that equilibrium is attained and both parties are satisfied through the trade. International finance is important in the following ways.
- Connect or link to international markets
Governments and companies are able to connect with the international markets through international finance. As a result, different trade relations are established some of which include business partnership, buyer- seller, supplier and lending relations among other. This connection is important since it ensures free flow of goods and encourages trade agreements between two or more countries.
- Provide international market information
International finance provides traders with information about foreign trade fluctuations, international debt securities and inflation rates among many other information. The knowledge obtained is important towards making rational decisions in order to minimize lose associated with uncertainty in the international market. A trader can use this information to his/her advantage.
- Investment decision making
Depending on the prevailing international economic activities, investors are in a position to identify international economic opportunities. There are different ways of investing in international markets like currency trade, foreign debt securities and goods market. The prevailing international economic activities will form a basis which an investor will use in accessing an appropriate investment opportunity.
- International finance and peace
International finance helps in ensuring peace between nations since the interest of each nation is well catered. International finance provides a solid measure for a country’s currency, without which nations would engage in war trying to defend their self-interest.
- Solutions to financial disputes
Internationally formed financial institutes like the International Monetary Fund and the World Bank play an important role towards solution of macroeconomic disputes. These institutes also provide advice to the governments on various financial policies and development projects.
International finance assignment help
International finance is an important tool towards prosperity of any nation or economic entity in the global markets. Just like any other form of trade, international finance is very broad and comprises of different aspects and features. We are dedicated at providing international finance assignment help that will see you attain best grades at the end of your coursework. Our team is made of dedicated experts with hands on experience on different international macroeconomics topics.