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ABSTRACT
Other methods must be used to control cash flows, Financial Management Guides companies in
which should not make an initial settlement or price in financing divisions and achieving business financing
reporting currency. In this situation, the popular goals IFM requires any corporate investments to be
limiting methods are selling and buying contracts in properly equipped. Valuation can affect the financing
foreign currency. These contracts between parties to mix while discussing the effect of both un-fixed rate
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 3 | Mar-Apr 2018 Page: 2628
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
and cash flows. In this way the financial organizer Hence international financial management can help in
must highlight the proper mix of capital structures and managing various national and international economic
financing, which can lead to a maximum value. The decisions.
sources for generating financial resources usually
have a combination of debt and equity financing. If a Measure of IFM performance
business is determined to be financed by a loan, it will
increase the obligation to pay, so the project's goal of The International Financial Management Ratio
success consists of cash flow problems independently. Analysis System helps to measure business
Second choice equity financing. However, equity performance through its financial results. These
financing is less dangerous for cash flow payments, analyzes provide the location where the company is
but results in reduction in control, management and per year. Recognizing losses, such financial decisions
earnings. The cost of equity financing is more than the reduce the value of the company on the other side,
cost of debt financing, and in this way the equity such international financial decisions that increase
financing method can result in a appreciative hurdle profitability improve company value. Two important
rate to compensate for any reduction in cash flow risk. components of profitability and risk in any business
Management of International Financial Management that effectively manage through financial
helps to keep balance between two options to avoid management.
cost burden. Conclusion
IFM coordinates various functional functions The challenges facing today's management are
internationally powered, efficient and efficient. The
Integrating comprehensive international financial major difficulties facing the business in international
management among the functional areas such as markets, the change in currency exchange rate,
production, marketing, etc. to accomplish the goals of investment decisions, financing decision, and the
organizations. If financial management in coordination of different business segments in
multinational companies is incomplete, the effect of different geographical areas. These problems can be
other business units can be managed. For example, the managed by the proper adaptation of international
Finance Department needs the necessary finance for financial management practices. These methods are
the procurement of raw materials and the need for based on the understanding of management of the
other expenses to maintain a successful business. If needs of overseas markets and its subsidiaries. In
the financial sector does not work properly and can short, management business accounts and finance are
not meet the obligations, the sale and product crucial to multinational business success because of
segments are lost, resulting in profit and income. In the complexity of financial management in the
short, proper financial management occupies an international business environment and the
important place in any business concern. importance of financial management challenges
international management
Determining business success
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 3 | Mar-Apr 2018 Page: 2629