Importance Of International Financial Management Finance Essay

Importance Of International Financial Management Finance Essay The rapid globalization, economic crises and continuously changing business environment together to make present financial management challenges more critical than ever. And the same forces make successful financial controls very important because international financial management (IFM) operates, with the decisions financial in nature taken, in the era of international business. The development in international business is apparent in the mode of extremely inflated volume of international trade. The history of international trade can be traced back to World War II. When after the war years immediately, the common type of contracts on the Trade and Tariffs were established in order to increase trade. This arrangement eliminates the trade restrictions extensively over the years and as a consequence multinational trade grew largely. Moreover, the traders financial contribution in respect of exports and imports surged widely across the countries. Since then this situation persist and in crease over the years that compel companies of all types and sizes to think how to utilize resources when dealing in international markets. This expansion gives rise to significant variation in the position of market stability. As a result, today major financial decisions entail cross-border complications. Preferences in respect of raising capital, management of risk, investment decisions, mergers, restructuring, and all other features of financial strategy generally involve international complexities and these complications increase the need of international financial management. When financial managers take these decisions they must examine currency exchange rates, risk factors of specific country, tax rules differences and deviation in legal systems. In short, the finance managers of multinational corporations need appropriate management of international flow of funds for which the international financial management came to be very important and this has been discussed in detail below. Objectives The purpose of this research paper is to discuss the importance of international financial management to know that the role that financial management is playing in a modern international business environment. Importance of International Financial Management International financial management (IMF) significance cannot be exaggerated. It is, however, the core factor to successful business operations. In the absence of finance in local even in international market, no entity can achieve its full strengths for success and growth. We all know that money is a worldwide lubricant that keeps the local and multinational enterprise dynamic in developing product, keeping machines and men in working, motivating management to create values and progress. As I have discussed above that globalization open the market for major corporations to business into international markets, but it also brings corporations to a variety of risks that they can face while operating in international era and in this regard international financial management is the only solution to mitigate these risks and expose corporations to the whole world to operate in. Below is the details of risk that multinational companies face and the role international financial management pla y to control these risk that increase the importance of international financial management. Currency Exchange Risk and International Financial Management Operating business in international markets may result in a foreign currency exchange risk that is known as exposure of transaction. Currency exchange risk arises when an entity has receivables or payables major portion in foreign currency (FC). The risk persists in the variation of the foreign currency exchange rate. For instance, if the foreign currency increases in value before paying liability, the business has to pay extra amount to purchase the foreign currency required to clear this liability. As a consequence, the business will face a loss of foreign exchange. And when the currency value decreases the business will have foreign currency gain. On the other hand net assets will have the reverse relationships that are denominated in a foreign currency. In managing the risk of currency exchange, IFM approaches have gained prominence in recent years. IFM provides a variety of hedging techniques to control foreign currency transaction risks. Pricing. The basic technique offers by international financial management to manage risk or to control billing currency, is called pricing. Exchange risk currency can be controlled if the businesses invoice their clients in the companys reporting currency or functional currency. For instance, a business can settle a price of receivable in the currency in which they are reporting and thus transfer the risk of exchange to their customer. Settlement. This technique is used where the business cannot price their customer in reporting currency, it can exercise the settlement technique to eliminate FC exchange risk. This technique needs that management continuously offer early settlement discounts for receivables or payables dealt in a foreign currency. In short, this technique of IFM pushes a business to renounce the advantage of the money time value with the intention to evade the risks of foreign currency exchange variations. Forward Contracts. The business should use the other techniques to control the cash flows if it doesnt want to make early settlement or cannot price in reporting currency. Almost certainly in this situation the renowned hedging methods is selling and buying forward contracts in foreign currency. These are agreements between parties to sell or buy foreign currency in future time at pre-decided fixed exchange rate. It reduces the companys exposures to variation in exchange rates, whatever the rate in future is, the transactions occur at fixed rate. This transaction involves the cost of currency exchange and the cost of purchasing a forward contract. Leading and logging. IFM also provides additional technique to mitigate the risks for centralized and large business, called leading and logging. This technique requires leading (prepaying) due amount when the currency of payer is decreasing against the payment currency and lagging (covering) those payments if the currency of payer is increasing. From business perspectives, the international financial manager can ask for leading and lagging technique so as to take benefit of the constructive consequences of exchange rate variation. Moreover, leading and lagging strategies may be exercised to move funds to cash-poor from cash-rich partners, thus enhancing liquidity in short-term. Working Capital Management and International Financial Management International financial management plays very important role in working capital management. Working capital management means taking decisions relating to short-term liquidity, and capital financing. These decisions comprises on managing the rapport between short-term asset and short liabilities of the firm. In this regard international financial management plays very important role in maximizing the worth of the firm by spending in such projects which produce a positive net present value (NPV) by discounting with appropriate discount rate. These investments, as a result, have complexities in relation to cost of capital pf cash flow. The purpose of IFM is to make sure that the business is capable of operating, and that it has positive flow of cash to support debt in long-term, and to assure both upcoming operational expenses and short-term debt. In this way the firm value is appreciated in case the return on capital investment surpass the capital cost. Financing Decision International Financial Management also guides companies in taking financing decions. And accomplishing the business financial objectives IFM need that any corporate investment be financed properly. As discussed above since both un-stable rate and cash flows will be influenced, the mix of the financing can influence the valuation. In this way financial manager must highlight the capital structures and optimal mix of financing that should result in maximum value. The sources to generate finance generally involve the combination of debt and equity financing. If a business decides to finance through debt, it will increase the liability that must be paid, therefore involving cash flow complications independent of the project target of success. The second option is equity financing. Equity financing is, however, less risky in relation to cash flow payment promises, but results in a reduction of control, ownership and earnings. The equity financing cost is also more than the cost incurred in debt financing, and in this way equity financing method may result in an appreciated hurdle rate that may compensate any reduction in risk of cash flow. International financial management helps management to keep balance between both options to avoid the risk of cost burden. IFM Co-ordinates Various Functional Activities International financial management offers comprehensive harmonization between varieties of functional areas such as production, marketing, etc. to accomplish the goals of organizations. If financial management is imperfect in multinational companies, the effectiveness of other business units can be maintained. For instance, it is very essential for the finance department to make available required finance for the raw material procurement and for other expense for the successful running of business. If financial department does not work properly and fails to meet obligations, the sale and production units will suffer and as a result profit and income will undergo. In short, proper financial management occupies a significant place in any business concern. Determinant of Business Success International financial management is necessary for the business success. It has been identified that the financial manger plays a very imperative role in the business success by suggesting the higher level management the effective solutions of a range of financial problems as professional. They provide considerable figures and facts in relation to financial position and company various functions performance in specific period before the higher management in such means that make it easier for the higher management to assess the companys progress to adjust policies and the principles of the company properly. The international financial managers help the higher management in the process of decision making by recommending the best possible solutions out of the number of alternatives options available. Hence, international financial management assists the management at various stages in taking national and international financial decisions. IFM as Measure of Performance International financial management helps to measure the performance of business through its financial results by applying the techniques of ratio analysis. These analyses provide the position that where the firm is going over the years. Such financial decisions that appreciate risks become cause to decrease the worth of the firm and on the other the hand, such international financial decisions that boost the profitability enhance the firm value. Profitability and risk are two necessary part of any business that can be managed effectively through financial management. Conclusion The challenges that management is facing today is the effective and efficient working such that is internationally oriented. The major difficulties that a business faces in international markets are, fluctuation in currency exchange rate, investing decisions, financing decision, coordination of different business unit in different geographic places, etc. These problems can be managed through proper adaptation of international financial management methodologies. The effectiveness of these methodologies based on managements understanding to the foreign markets and the requirements of its subsidiaries. In short, managing business accounts and finance is crucial to the success of every multinational business because the increase in complication and importance of financial management in international business environment poses challenges for management in international corporations.

Br and Haagendaz

BaskinI) Target Market 1) Haagen-Dazs Haagen-Dazs is taking the â€Å"excellent ice cream† line; the aim target consumers are the youngers who are fashionable and in the income pyramid peak. (yc2000, 2008) 2) Baskin-Robbins The primary target market of Baskin Robbins is comprised of higher middle (Rs. 150 000 to 200 000) and higher upper (Rs. 200 000 above) income professionals and families with toddlers. The secondary segment of Baskin Robbins target market is composed of teenagers, young adults and students (School and university). II) Point-of-difference ) Haagen-Dazs Haagen-Dazs wins in the segments and grasp of the aim market. Each time to entered in new market, Haagen-Dazs will make careful analysis of the domestic consumer’s mind, this provides great assistance for marketing and branding.Meanwhile, Haagen-Dazs cooperate with many upscale restaurants, to let Haagen-Dazs ice cream printed on smooth these advanced restaurant menu. In terms of competition, for the re ason why Haagen-Dazs maintain excellent results in the fierce competition is because it not only represents a product, it also stands for a lifestyle. ) Baskin-Robbins Baskin-Robbins is the flavor champion of the world. Each month, the Baskin-Robbins team has produces a new ice cream flavor. And it focuses on customer choice. And Baskin-Robbins has the best ice cream cakes. They have a thick layer of cake and a layer of ice cream. The texture of the icing as it melts, the slight crunch of the cake and the way the ice cream melts into the cake where they meet. Plus they have those figurines on top.Baskin-Robbins has popularized the practice of offering free tastes on miniature pink spoons to customers dazzled by its selection of flavors. Its pink spoon has become a veritable cultural icon. (wejdani, 2011) III) Point-of-Parity 5) Haagen-Dazs All the fruit for Haagen-Dazs’s product is pasteurized, which kills all of the bad bacteria. And all of the Haagen-Dazs sorbet products ar e nonfat, with the exception of chocolate sorbet. Haagen-Dazs products cannot be refrozen after they've thawed, because Haagen-Dazs products were made in the most natural way possible.Also Haagen-Dazs products should not be refrozen if thawed. Thawing and refreezing can create large ice crystals and cause undesirable gritty textures or diminished quality. 6) Baskin-Robbins Most of Baskin-Robbins products are low fat and contain vitamins. They are passionate about offering their guests delicious products they will enjoy, giving them plenty of menu options, and providing accurate nutrition information so they can make the best choices for themselves.From the materials Baskin-Robbins use, to the way they construct and operate their stores, they are committed to adopting better, more sustainable approaches whenever possible. (CSR Report, 2010) References: (2008, 11) Haagen-Daz. Marketing Analysis. Retrieved from http://www. studymode. com/essays/Haagen-Daz-Marketing-Analysis-183072. htm l (2011, 03) Baskin Robbins. Retrieved from http://www. studymode. com/essays/Baskin-Robbins-638496. html

Informative Analysis Essay

The purpose of an informative briefing is to enhance the audience’s knowledge about a specific topic in which the speaker is an expert. The goal of the presenter is to present clear-cut information in an interesting yet enlightening manner. The purpose of my speech was to enhance the audience’s awareness of what marijuana is, as well as to dispel many myths that exist around it that emanate from the fact that it is an illegal substance, causing often untrue information to be spread. The ultimate goal of my presentation was to leave the audience with a better understanding of what the plant actually is and how it may be of use to society. Introducing a topic during a presentation is one of, if not the, most difficult part of any speech. If the speaker does not draw the audience’s attention immediately, then they are, in effect, lost for the duration of the speech. I believe that my introduction was relatively effective because it introduced my topic in a way that most members of the class can most likely relate to. By asking the audience if they recognized the rolling paper, they were forced to focus on me as well as my question, which then introduced a relatively controversial topic. In doing so, I should have captured the attention of the audience. In reviewing my performance, however, it was clearly evident how nervous I was which hindered the eloquence of the introduction, making it less effective than I had planned and ultimately hoped for; it was, nonetheless, still effective in capturing the audience. As with any other presentation, the body of the speech followed the introduction. The body was organized in a manner that would logically suit the presentation. First, there was a brief description of what marijuana really is, which was actually quite important based on the purpose of the speech. Marijuana is most often referred to by one of the multitudes of street names that it has acquired and the purpose of the speech was to enhance the knowledge of the audience by presenting facts, not street information. Following the description was a point counter-point narrative of many of the myths surrounding marijuana usage and the truth behind those  myths. Next, I spoke about many of the federal studies that have occurred whose findings differ greatly with much of the propagandized information that is presented to the general population. The third major topic area that I covered was the potential that marijuana has for the business and financial world, as well as the repercussions tha t would ensue if marijuana was actually made into a legal plant and turned into an industry. Each of the major points was supported by numerous documented facts. In defining what marijuana is, I used the Common Sense for Drug Policy Foundations definition as well as other information that the site provided that enhanced the understanding of the defining characteristics of marijuana. After this, I spoke about the many studies that have occurred, such as the Schaffer Study conducted under the Nixon Administration, which I obtained information about from a book authored by Raymond Schaffer, the man who lead the study (the book was titled A Signal of Misunderstanding). I found that many of the other studies provided statistics that further enhanced the information provided in my speech because it described the ineffective nature of current policing policies as well as introduced the final portion of my presentation, which was the business aspects involved in the marijuana debate. The information provided by the national commission on marijuana and drug abuse was valuable in supporting my statement that there are business repercussions that could emanate from the use of marijuana. First, I stated how many users there are in the United States, followed by the extent of the crimes committed. Then, using information from an Associated press article entitled UN Estimates Drug Business Equal To 8% of World Trade, I described how the business world would most likely benefit from the legal use of marijuana. The basis of any conclusion is to tie up the presentation and basically re-cap what was presented. My conclusion was not as effective as I had hoped. My goal was to create a clincher, a final thought provoking, or at least interesting, point that would regain the audiences attention if it had been lost during the presentation. In attempting to do so, I was not  effective in summarizing the major points, nor was the clincher too effective. It seemed as if I was struggling to come up with an adequate clincher, which could have been avoided with more practice of the conclusion. Because I did not have a speech prepared, my eye contact was relatively effective in viewing the audience. Realistically, I should have looked up at the audience more, and for more sustained periods of time, but the lack of a composed speech forced me to look at the audience throughout the presentation. My vocal variation during the speech was sub-par. It was clearly evident that I was nervous throughout the speech and the voice was a reflection of my anxiety. In practicing the speech, I had used various intonations to emphasize certain points, but during my presentation I was, for the most part, speaking in a monotone. There were points where I did alter my vocal tone, but it was not frequent or effective enough. The speed and enunciation of the speech were adequate, but the volume of my voice and the general variation of tone in general could have been improved upon. Because I did not have any physical examples and no podium was set up, body movement was not necessarily appropriate. If we had been encouraged to walk around the front of the room or if there was a large physical example, then movement would have been appropriate. However, under the given circumstances and time restrictions, body movement was, personally, minimal because it was not overly necessary in the presentation of the information. As many of the other class members discovered, it was difficult to involve the class in the discussion. Few, if any, members of the class actively participated in any presentation, even if solely by asking questions. I believe that most of the class members have been confronted with my topic at some point or another during their lives, so even at an unspoken level most of my classmates must have at least related to the presentation. Again, my class is not overly participatory in any nature, so it is difficult to rate the amount of audience participation because, in general, the class does not participate unless there isn’t an alternative. Informative speeches are an effective method of enhancing an audiences knowledge of a given topic. They are purposeful and necessary, especially in  the upbeat modern world that requires quick and effective transference of information from one individual to another. Through the use of these speeches, a large amount of information can be provided to a room full of individuals in a relatively short amount of time. The information provided can then be used or applied immediately following the presentation. The goal of my informative speech was to enhance the audience’s knowledge about what marijuana really is, and how it can be used today to augment the way of life of our growing economy.

Why We Love TVs Anti-heroes - 544 Words

Why we love TVs Anti-Heroes? Todays TV protagonists are very different from those of early television, but we still love them.Why? In his article, Stephen Garret starts to emphasize the point that our favorite television characters are actually extremely corrupt and morally ambiguous people. He argues that characters who always do the right thing no longer hold any interest to the average person because they are predictable. A lot of people are considered TV affected, so probably the term anti-heroes is well-known. What is a anti-hero and his characteristics, what are some examples representing anti-heroes and most importantly why do we love them, are three points that will be discussed above. In todays society the word hero or heroic is abused in the news, in sports reports and in conversations. Actually the heroes toady are completelly different fromthose of two or three decades ago. a hero for us is Tony Soprano, The Shields Vic Mackey or Mad Mans Don Draper, which are all criminals, cold-blooded assasins or liars. What has happened to our world that makes people change the hero DNA? Its the twenty-first century and what is actually taking over the TV is the anti-hero. The anti-hero is a personage that does not have the qualities of the traditional admirable leading man or woman.He or she lacks kindness, courage and gentility, but most importantly moral grace. Simply said the, the anti-hero is a personage who undergoes the normal social processes, butShow MoreRelatedEssay Signs of Life in the USA841 Words   |  4 Pagesï » ¿Calley Hagen Matt Montoya English 101 14 October 2014 A Response to Stephen Garrett’s â€Å"Why We Love TV’s Anti-heroes† In the reading, â€Å"Why We Love TV’s Anti-heroes† by Stephen Garrett, he points out that anti-heroes are becoming more popular than the traditional hero. Garrett states, â€Å"the word hero is abused in the news, the sports reports, and even in conversation† (318). For example tabloids recognize someone who battles a drug addiction and overcomes it or a substitute kicker for the footballRead MoreWhy We Love Tv Anti Heroes1374 Words   |  6 PagesDaniel Holland April 13, 2014 Why We Love TV’s Anti-Heroes Is it possible today’s generation gradually evolved into an era in which selfishness and evil overpowers good? Over the past years society perceives the idea of a hero differently than it was perceived in the 21st century, nevertheless impacts our society hugely. It is no surprise why youth of today enjoy T.V. shows that are driven by torture, killing, drugs and drama. In fact these are among the T.V. shows with higher ratings. Hero