International Financial Management Essay Example | Topics and Well Written Essays - 2500 words - 3

International Financial Management - Essay Example Thirdly, firms aim at broadening their market. Fourthly, companies aim at increasing their returns. In terms of career, International financial management is focused to the students who aim at being involved in investment across the border where they will be involved in making financing decision while working managers, investors or consultants. Four key areas that are covered by International financial management include currencies, multinational financial decision making, institution and finance and cross border valuation. This paper seeks to discuss various issues that came about during the half yearly meeting of International Investments plc from various stakeholders. Being the world’s primary reserve, the dollar is a key aspect that helps US government to keep interest at low level. On their part, foreign countries buy the US treasury debt for two main reasons. First, it is an investment that the countries can use to improve their monetary policies. Secondly, dollar-denominated assets as compared to other currencies are the best way to hold foreign exchange reserves (Brealey and Myers, 1991). As indicated by Catherine Mann, long-term global economic health demands that United States and the trading partners to collect internal imbalances as well as external balances. In order to ensure that the future position of the dollar remains strong there is need for co-dependency between US and the trading partners (Grimwade, 2000). In the case of depreciation of a dollar, there will be an economic problem that will involve global re-balancing. Global re-balancing refers to complementary narrowing of two imbalances across the globe. These include e xpansive dependence of other countries on the net exports of the US as well as the increasing US current account deficit. One of the key roles of global co-dependency is that it prevents the dollar from depreciation while at the same time keeping the current configuration of the world imbalances at the best position