Dr. Zulfiqar Hasan

International Finance is the process of transferring fund from surplus economic unit to deficit economic unit when any of these units is located outside a national country.

International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade.

When Banking transactions are crossing national boundaries that is called international banking.

Problems of International Finance

1. Restrictions on capital movements

2. Tax differentials

3. Inability of a group of investors to transact

4. Implications of exchange rate risk on international asset-pricing

5. Percent of foreign ownership limits

6. Political constraints

7. Religious barrier

8. Cultural and moral questions

There are several methods by which firms can conduct international business.

Some of these are: International trade; Licensing; Franchising; joint venture; Acquisitions of existing operations; Establishing new foreign subsidiaries and Foreign Direct Investment (FDI).

Contributor Dr. Zulfiqar Hasan, Ph.D. (Bank Conversion, AIS), is a university teacher working as an Associate Professor (Finance), BIU. He has done his MBA from London School of Commerce (LSC), London, UK. He has also been the Program Coordinator, MBA program, Northern University Bangladesh (NUB), Dhaka and in the same capacity in Bangladesh Islami University, Dhaka. He has taught several courses in different reputed universities in Bangladesh.