International Financial Management – Concepts, Strategies & Global Finance Guide (1) Page 1 International Financial Management – Concepts, Strategies & Global Finance Guide (1).pdf
International Financial
Management – Concepts,
Strategies & Global Finance
Guide
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 16
Page 1 of 16 2026-03-17
,International Financial Management Page 2 International Financial Management.pdf
What is the financial manager's objective?
Maximizing Shareholder wealth
Why Firm's Pursue International Business
Comparative Advantage, Imperfect Market, Product Cycle
Comparative Advantage
specialization by countries can increase product efficiency
Imperfect Markets
factors of production have some degree of immobility
Product Cycle
as a firm matures, it recognizes additional opportunities outside its home country.
Page 2 of 16 2 of 16 2026-03-17
, International Financial Management Page 3 International Financial Management.pdf
How Firm's Engage in International Business?
International trade
• Licensing
• Franchising
• Joint Ventures
• Acquisitions of existing operations
• Establishing new foreign subsidiaries
Low Risk Methods of IB
International Trade, Licensing, Franchising
Medium Risk methods of IB
Joint Ventures and Acquisitions of existing operations
High Risk methods of IB
Establishing new foreign subsidiaries
Page 3 of 16 3 of 16 2026-03-17
International Financial
Management – Concepts,
Strategies & Global Finance
Guide
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 16
Page 1 of 16 2026-03-17
,International Financial Management Page 2 International Financial Management.pdf
What is the financial manager's objective?
Maximizing Shareholder wealth
Why Firm's Pursue International Business
Comparative Advantage, Imperfect Market, Product Cycle
Comparative Advantage
specialization by countries can increase product efficiency
Imperfect Markets
factors of production have some degree of immobility
Product Cycle
as a firm matures, it recognizes additional opportunities outside its home country.
Page 2 of 16 2 of 16 2026-03-17
, International Financial Management Page 3 International Financial Management.pdf
How Firm's Engage in International Business?
International trade
• Licensing
• Franchising
• Joint Ventures
• Acquisitions of existing operations
• Establishing new foreign subsidiaries
Low Risk Methods of IB
International Trade, Licensing, Franchising
Medium Risk methods of IB
Joint Ventures and Acquisitions of existing operations
High Risk methods of IB
Establishing new foreign subsidiaries
Page 3 of 16 3 of 16 2026-03-17
