Any organization needs finances to obtain physical resources, carry out the production activities and other business operations, pay compensation to the suppliers, etc. Fundamental Features of Strategic Alliances 3. A Financial System consists of various financial Institutions, Financial Markets, Financial Transactions, rules and regulations, liabilities and claims etc. As a function of good governance, Financial Management (FM) forms an integral part of the development process in all Bank-financed operations and country institutional strengthening efforts, and is crucial to achieving the World Bank Group’s (WBG) goals of ending extreme poverty and boosting shared prosperity in a sustainable way. The financial management has to take three important decision viz. I nternational financial management is subject to several external forces, like foreign exchange market, currency convertibility, international monitory system, balance of payments, and international financial markets.. 1. (i) Investment decision i.e., where to invest fund and in what amount, (ii) Financing decision i.e., from where to raise funds and in what amount, and (iii) Dividend i.e., how much to pay dividend and how much to retain for future expansion. Meaning of Financial Management. Thus, international financial management is the study and application of financial strategy that takes into account the differences and complexities involved in cross border transactions. Concept of Strategic Alliances: Strategic alliances are cooperative arrangements between organizations belonging to same country or different parts of the world or different ends of the supply chain which are more than the deal. It is an essential management process to strategize and prepare for different odds. 1. for the better utilization of finances. The reason is that a company cannot function without the proper use of funds. Financial management in the public sector is qualitatively different from its private sector counterpart, even though there are some common professional standards and techniques. Separation of producers from buyers: In the case of inland trade, buyers and producers are in close contact with each other, as they belong to the same nation. To understand the importance of international equity markets, market valuations and turnovers are important tools. International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). Forum #2 In Chapter 2, you were introduced to various aspects of the international monetary system. Political risk It the risk of losing money due to changes that occurs in a country’s government. 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