chapter  13
23 Pages

International Financial Management

When a company expands its business beyond its national borders by exporting or importing goods or services, the company’s financial manager has to deal with additional variables such as exchange rates, tariffs, and regulatory, legal, and cultural issues. The financial manager’s responsibilities increase further when the company establishes subsidiaries abroad, as he or she must deal with additional issues such as borrowing and lending in local markets and interacting with foreign governments, agencies, and institutions.