PRESENTATION OF

INTERNATIONAL FINANCIAL
MANAGEMENT
Presented By :
ASHISH
KATHIRIYA
Guided By:
PRADIP H.
GOHIL

VISION INTERNATIONAL
INSTITUTE OF MANAGEMENT
 CONTENT

MEANING
CURRENCY
EXCHANGE RATE
FACTOR INFLUENCE EXCHANGE
RATE
FOREIGN EXCHANGE
TRANSACTION OF COMMERCIAL
BANK OF INDIA
 CONTENT
MAJOR ACTIVITY
FINANCING FOREIGN TRADE
EXPORT FINANCE
REGULATION RELATING TO
EXPORT FINANCE
EURO ISSUED BY INDIAN
COMPANY
 CONTENT
INTERNATIONAL BOND,EURO &
GLOBLE
FOREIGN DIRECT INVESTMENT
SOURCE FOR TRADE FINANCE
INTERNATIONAL ACCOUNTING
CONCLUSION
BIBLIOGRAPHY
 MEANING OF
INTERNATIONAL BUSINESS
“International business
consists of transactions that
are devised and carried out
across national borders to
satisfy the objectives of
individuals and organizations.”
CURRENCY
Country Currenc
USA y
Dollar
Kuwait Dinar
Saudi Riyal
Arabia
Australia A Dollar
Country Currency
Pakistan P Rupee
Russia Ruble
Iran Rial
Spain S Peseta
Japan Yen
France Franc
China Yuan
Mexico (Euro)
M Peso
Oman O Rial
UAE Dirham
UK Pound
Italy Lira
(Euro)
THE EXCHANGE RATE
IS THE PRICE OF ONE
CURRENCY IN TERMS
OF ANOTHER
 FACTOR INFLUENCING
EXCHANGE RATE

• Supply of and Demand for

each Currency
• Interest rate
• Balance of payment
• Government policy
• Labour Market Flexibility
• Capital Mobility
 FOREIGN EXCHANGE
TRANSACTIONS OF
COMMERCIAL BANK OF INDIA
• Nostro Account

• Vostro Account
 The Foreign Exchange
Market
• The FX market encompasses:
– Conversion of purchasing power
from one currency to another; bank
deposits of foreign currency; credit
denominated in foreign currency;
foreign trade financing; trading in
foreign currency options & futures,
and currency swaps
• No central market place
– World-wide linkage of bank currency
traders, non-bank dealers (IBanks,
insurance companies, etc.), and FX
brokers—like an international OTC
 CONTINUE…
• Largest financial market in the world
– Daily trading is estimated to be US$3.21
trillion
– Trading occurs 24 hours a day
– London is the largest FX trading center
 Major Activity

• Borrowing or • Futures
lending contract

• Balance of • Interest rate

Trade swap

• Currency swap
• Forward
contract
FINANCING FOREIGN
TRADE
EXPORT FINANCE

2.Funds should be available to the

exporter at the require time

4.Cost of the fund should be

affordable
REGULATION RELATING TO
EXPORT FINANCE
• RBI Guideline
exchange Control regulation –
FEMA1999

• Trade Control Regulation

(Foreign Trade Policy 2004-2009)

• International Chamber of
Commerce (ICC)
EURO ISSUED BY INDIAN
COMPANY
• Permission for issue

• Pricing of GDRs
(Global Depository Receipt)

• Issue of Foreign Currency

Convertible Bonds
INTERNATIONAL BOND,FOREIGN,EURO
& GLOBLE

• Active Bond markets available to

domestic & Foreign investors

• Euro Bond

• Global Bond
(Introduce by World Bank in 1989)
FOREIGN DIRECT INVESTMENT (FDI)

 Investment made to acquire

lasting interest in enterprises
operating outside of the
economic of the investor

 FDI in the World economy

 Indian to allow FDI in Food Retail

SOURCES OF TRADE FINANCE

 Government Assistance Programs

 Eximbank in United States-

– Arranges loans, guarantees,
working capital and insurance

 Foreign Corporation Insurance

Agency
– Protects against default on
exports sold under open
accounts
 CONTINUE…..

 Overseas Private Insurance

Corporation
– Offers performance bonds

 Small Business Administration

– Revolving line of credit
 $

RESOURC
RESOURC E
E USERS PROVIDE
RS

PROVIDERS OF CAPITAL
BUSINESS ENTERPRISES (INVESTORS,CREDITORS,A
ND GOVERNMENT)

INFORMATION INFORMATIO
PROVIDERS N USERS

FINANCIAL ACCOUNTING
INFORMATION
 ACCOUNTING IN THE
INTERNATIONAL BUSINESS
• Country differences in Accounting
Standard

• Inflation Accounting

• International Standard
International Accounting Standard
Bond
Financial Accounting Standard Bond
Accounting Aspect of central system
 CONTENT
MEANING
CURRENCY
EXCHANGE RATE
FACTOR INFLUENCE
EXCHANGE RATE
FOREIGN EXCHANGE
TRANSACTION OF
COMMERCIAL BANK OF INDIA
 CONTENT

MAJOR ACTIVITY
FINANCING FOREIGN TRADE
EXPORT FINANCE
REGULATION RELATING TO
EXPORT FINANCE
EURO ISSUED BY INDIAN
COMPANY
 CONTENT
INTERNATIONAL BOND,EURO
& GLOBLE
FOREIGN DIRECT
INVESTMENT
SOURCE FOR TRADE FINANCE
INTERNATIONAL
ACCOUNTING
CONCLUSION
BIBLIOGRAPHY
 CONCLUSION
Funds require to every company
and also they need to support of
Government, Banks etc.
Accounting is must in all
business transaction in
international business and also
they need to watch on currency
swapping.
 BIBLIOGRAPHY

• INTERNATIONAL FINANCIAL
MARKETS AND INDIA
BY : H.R. Machiraju
• INTERNATE
• INTERNATIONAL BUSINESS
BY : Charles W.L. Hill
Arun K. Jain
• EXIM FINANCE
BY : K.Parmeswaram