International Financial Management Essay

990 WordsApr 30, 20124 Pages
International Financial Management Dealing with international markets requires investors to consider everything about foreign markets. Exchange rates have an effect on profit. Profit has an impact on the price of goods and services exchanged. There are risks to international endeavors that organizations do not face when operating domestically. A few risks to consider would be foreign exchange risk, political risk, macro political risk, country specific risk, and firm specific risk. Acme, a production facility, is looking to have a foreign presence without as a new venture. A green field is when company wants to start doing business internationally when they do not currently have any foreign presence and are not taking over an existing company in the foreign area. Country Choices When considering Europe as the new location one must decide a country in the European Union or not in the European Union. France is a country in Europe that is part of the European Union, and San Marino is a country in Europe that is a part of The Council of Europe. The European Union is a group of countries that have joined together and agreed to follow the same laws in standards to promote travel, exchange of goods, quality products, strong economy, healthy and safe living, quality work, education, and peaceful retirement. The Council of Europe is an international group promoting co-operation between all countries of Europe in legal standards, human rights, democratic development, the rule of law, cultural co-operation. It was founded in 1964 and has 47 members. Unlike the EU, the Council of Europe cannot make binding laws. The Council of Europe is separate from the European Union and the European Council Countries Currencies France is a part of the European Union and the Union uses Euros as currency. The Euro is shared by 16 countries as of 2009 which represent 2/3
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