A cross rate is the currency exchange between two currencies where neither are the official currencies of the country in which exchange rate quote is given. It means that cross currency rate is when the currency being mentioned do not belong to domicile. Therefore, a finance Journalist in Japan will refer to EUR/GBP as the […]
Cross Rate Application in Business Scenarios Read More »
Foreign exchange quotation is the amount of currency that is exchanged for a unit of another currency. Foreign exchange quotations can be two types, they are: 1. Direct Quotation 2. Indirect Quotation Direct quotation: A direct quote expresses the price of one unit of foreign currency in terms of domestic currency. In other words, it
Exchange Rates: Concepts and Real-World Applications Read More »
International Business (IB) refers to the exchange of goods, services, capital across national borders and technology. It involves the operations of MNCs, exports, imports, FDI and FPI. Each form creates different financial responsibilities: International business activities do not remain confined to corporate balance sheets; they directly affect a country’s foreign exchange inflows and outflows, and
Different Forms of International Business through the BOP Framework Read More »
The balance of payments (BOP) summarizes the economic transactions of an economy with the rest of the world. This statement includes all the transactions made by individuals, corporates and the government and helps in monitoring the flow of funds to develop the economy. Whenever goods, services, capital, or investments move across countries, they leave a
Balance of Payments (BOP) through Cross-Border Financial Transactions Read More »
Whenever business activities are restricted within a country, transactions are conducted in a single domestic currency. Accounting remains relatively simple and there is no exchange rate risk or uncertainty. However, the moment business goes global and involves more than one country, two or more currencies enter the picture, making financial transactions and accounting more complex.
Understand Forex Basics in the Global Financial World Read More »
I recently attended a session where the speaker began an insightful discussion on the forms of International Business in today’s LPG era — Liberalization, Privatization and Globalization. The speaker was explaining that after the 1991 reforms, India opened its doors to the world, and from that moment, cross-border business became a part of our everyday
International Business through the Lens of International Finance Read More »
Some students are attending a lecture on International Finance, and the professor begins by discussing the basic concept. He looks at the class and says, you have already studied Financial Management, but that was restricted within the country — a domestic financial world with familiar rules, domestic currency, and conversant markets. But the moment a
International Finance: Crossing Borders with Finance Read More »
