Q1. Why is it important to study international financial management?
As the three major functions of business, i.e., consumption, investment, and production are highly globalized; therefore, it is essential to fully understand all important aspects of international financial management. It is completely opposite to the situation that existed decades ago that most of the scholars or professors were ignoring the international dimensions of finance. Nowadays the financial market is highly globalized, as a result, it is vital to understand the international aspects of the finance.
Q2. How is international financial management different than domestic financial management?
Three major aspects set apart international finance form domestic:
a. Foreign …show more content…
Thus the trade occurs when consumption changes from high cost to low cost producers. Competition will increase with more trade therefore there will be high incentive to cut the costs and increase the efficiency.
David Ricardo discussed that “free international trade is mutually beneficial for two countries to each specialize in the production of the goods that it can produce relatively most efficiently and then trade those goods among them.” To add more to the discussion is that countries tend to buy a product that is available in the international market cheaper than domestic market. So it means that free trade benefits both the producer and the buyer.
Answer5:
The theory neglects that the factors of the production are immobile such as land, labor, technology, and building. It ignores that technological changes help to increase the supply of goods not only for domestic market but also for international. Global market benefits from innovation and research and development. By neglecting these aspects the theory does not realistically describe international trade. …show more content…
To some extent he is right but back then American enjoy the lower wage rate of foreign citizens in order to produce goods. Therefore, Perot should bear in mind that it is a kind of give and take agreement you invest there, the jobs move there, but in return you produce a goods cheaper than in US. So it seems that both countries have benefited from the agreement and Mr. Perot’s position is not valid.
Answer 8:
Obviously, the goal of the board of directors is to maximize the share value of the corporate. In order to make it the first priority for them giving shares is the best incentive. Consequently, although the recommendation of working group doesn’t add anything special it just excludes the motivation which is given to the board in US. So making them shareholders motivates them to do their best and become more loyal to the corporation.
Answer 9:
Behaving with high ethical standards could avoid these recent corporation scandals but society should not depend on the ethical behavior of those business leaders. To make sure, it should protect itself by adapting to the rules and regulations to enforce the business leaders to behave in the interest of the
As the three major functions of business, i.e., consumption, investment, and production are highly globalized; therefore, it is essential to fully understand all important aspects of international financial management. It is completely opposite to the situation that existed decades ago that most of the scholars or professors were ignoring the international dimensions of finance. Nowadays the financial market is highly globalized, as a result, it is vital to understand the international aspects of the finance.
Q2. How is international financial management different than domestic financial management?
Three major aspects set apart international finance form domestic:
a. Foreign …show more content…
Thus the trade occurs when consumption changes from high cost to low cost producers. Competition will increase with more trade therefore there will be high incentive to cut the costs and increase the efficiency.
David Ricardo discussed that “free international trade is mutually beneficial for two countries to each specialize in the production of the goods that it can produce relatively most efficiently and then trade those goods among them.” To add more to the discussion is that countries tend to buy a product that is available in the international market cheaper than domestic market. So it means that free trade benefits both the producer and the buyer.
Answer5:
The theory neglects that the factors of the production are immobile such as land, labor, technology, and building. It ignores that technological changes help to increase the supply of goods not only for domestic market but also for international. Global market benefits from innovation and research and development. By neglecting these aspects the theory does not realistically describe international trade. …show more content…
To some extent he is right but back then American enjoy the lower wage rate of foreign citizens in order to produce goods. Therefore, Perot should bear in mind that it is a kind of give and take agreement you invest there, the jobs move there, but in return you produce a goods cheaper than in US. So it seems that both countries have benefited from the agreement and Mr. Perot’s position is not valid.
Answer 8:
Obviously, the goal of the board of directors is to maximize the share value of the corporate. In order to make it the first priority for them giving shares is the best incentive. Consequently, although the recommendation of working group doesn’t add anything special it just excludes the motivation which is given to the board in US. So making them shareholders motivates them to do their best and become more loyal to the corporation.
Answer 9:
Behaving with high ethical standards could avoid these recent corporation scandals but society should not depend on the ethical behavior of those business leaders. To make sure, it should protect itself by adapting to the rules and regulations to enforce the business leaders to behave in the interest of the