International Financial Management

This Category is dedicated to articles related to International Financial Management.


Comparative Advantage

Meaning of Comparative Advantage Comparative advantage refers to the ability of a country to produce particular goods or services at lower opportunity cost as compared to the others in …

Economic Exposure

Meaning of Economic Exposure Economic exposure, also known as operating exposure refers to an effect caused on a company’s cash flows due to unexpected currency rate fluctuations. Economic exposures …

Transaction Exposure

Meaning Of Transaction Exposure Transaction exposure is the risk incurred due to the fluctuations in exchange rates before the contract is settled. The foreign exchange rate that changes in …

Translation Exposure

Meaning of Translation Exposure Translation exposure is a risk of the value of a company’s assets, equities, income or liabilities changing due to fluctuations in exchange rates. Firms which …

Euro Commercial Paper

Meaning of Euro Commercial Paper Euro Commercial Paper (ECP) is an unsecured, short-term debt instrument that is denominated in a currency differing from the domestic currency of the market …

Foreign Exchange

Meaning of Foreign Exchange Foreign exchange, also termed as Forex refers to the conversion of one country’s currency into another country’s currency. A single country’s currency is valued against …

Purchasing Power Parity

Definition of Purchasing Power Parity Purchasing Power Parity (PPP) states that the currency of two countries are in equilibrium when the purchasing power in both the countries are same. …

International Banking

Meaning of International Banking International banking is just like any other banking service, but it takes place across different nations or internationally. To put in another way, international banking …