Describe the six major financial management tasks that are critical to firms active in international business transactions

Question

Vincent Curtis

Business

17 January, 20:50

Describe the six major financial management tasks that are critical to firms active in international business transactions

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Rachael Palmer · Answer 1

Choosing a capital structure. Determine the ideal long-term mix of financing for the firm's international operations.

∙ Raising funds for the firm. Obtain financing for funding value-adding activities and investment projects. Financing might come from selling stocks, borrowing money, or using internally generated funds.

∙ Managing working capital and cash flow. Administer funds passing in and out of the firm's value-adding activities.

∙ Performing capital budgeting. Assess the financial attractiveness of major investment projects, such as foreign expansion.

∙ Managing currency risk. Oversee transactions in various foreign currencies and manage risk exposure resulting from exchange-rate fluctuations.

∙ Managing the diversity of international accounting and tax practices. Learn to operate in a global environment with diverse accounting practices and international tax regimes.