Explain about the international finance, Financial Management

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Explain about the International Finance

When money crosses international boundaries businesses,individualsand governments should deal with special kinds of problems. Every country has its own national currency; hence a citizen of the United States should convert dollars to French francs before being able to purchase services or goods in Paris. Most governments have imposed restrictions on exchange ofcurrencies and these can affect business transactions. Governments may befacing financial difficulties, like balance-of-payments deficits or may bedealing with economic problems, like inflation or high levels of unemployment.In these cases, they may require detailed accounting for flows of funds ormay allow only certain types of international transactions. Study of flowsof funds between organizations and individuals across national borders and development of methods of handling the flows more efficiency are properlywithin the scope of international finance.

 


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