ABSTRACT
International business decisions today can hardly be made without considering financial management issues. Thus, financial management should not be viewed as the domain of financial managers alone, but rather as required knowledge for all international business managers. For example, what does “exposure” mean? Is it true that foreign exchange risks involve only foreign currencies, and the domestic currency is risk free in international business? Why did RTZ centralize its foreign exchange risk/exposure management associated with worldwide business? If you are a marketing manager in an overseas subsidiary, how would you deal with headquarters’ requirement for using currencies that may not be attractive to your clients? To answer these questions, we need to know the major functions of financial management for global operations.
