International Financial Market PDF
Document Details
Uploaded by Deleted User
Tags
Summary
This document discusses international financial markets, including the foreign exchange market, international money market, and international capital markets (bond and stock markets). It also touches upon the role of multinational corporations (MNCs) and globalization.
Full Transcript
International Financial Market MNCs or government agencies. Globalization and the Multi-National Bond Market Firms 70 to 75 percent of Eurobonds are International Monetary System denom...
International Financial Market MNCs or government agencies. Globalization and the Multi-National Bond Market Firms 70 to 75 percent of Eurobonds are International Monetary System denominated in the U.S. dollar. Corporate Governance Around the Eurobonds are underwritten by a world multi-national syndicate of investment banks and What Is International Finance? simultaneously placed in many countries. International finance, sometimes known as international macroeconomics, is the In the secondary market, the study of monetary interactions between two market makers are often the same or more countries, focusing on areas such underwriters who sell the primary as foreign direct investment and currency issues. exchange rates. Stock Market International Financial Market Segment In addition to issuing stock locally, The Foreign Exchange Market MNCs can also obtain investor funds by issuing stock in The International Money Market international markets. International Capital Market This will enhance the firms’ image, a. BOND MARKET name recognition, diversify their shareholder base, and match b. STOCK MARKET currency revenues with The Foreign Exchange Market expenditure. The foreign exchange market allows A stock offering may also be more currencies to be exchanged in order easily digested when it is issued in to facilitate international trade or several markets. financial transactions (recall BOP Globalization and the Multi-National statistics). Firms The system for exchanging foreign Globalization refers to the spread currencies has evolved from the gold of the flow of financial products, standard, to agreements on fixed goods, technology, information, exchange rates, to a floating rate and jobs across national borders system. and cultures. In economic terms, it describes an interdependence of The International Money Market nations around the globe fostered It is a short-term market (