International
finance is a broader and important discipline of financial economics. It is
greatly concerned with international macroeconomic and monetary interactions,
and it involves two or more countries. International finance is also known as
international macroeconomics/international finance/multinational finance. The topics
studied in international finance involve currency exchange rates and foreign
direct investments. Financial management risks do exist because of the
existence of nations, which greatly affects governments, organizations and even
businesses. As an international trade, the fact is that each nation uses its
own currency; therefore, there is a need to know how these currencies can be
compared to each other and most importantly understanding the methods of
payment and the factors determining the prices which is key. It is very
important to study international finance because of the possibilities of an international financial crisis; furthermore, the
nature of the international crisis needs to be studied in order to be able to
solve them.
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