International Business Management

Unit 8

Unit 8

International Financial Management

Structure:
8.1 Introduction
Objectives
8.2 Overview of International Financial Management
Evolution
Domestic versus International Financial Management
8.3 Components of International Financial Management
Foreign exchange market
Foreign currency derivatives
International monetary systems
International financial markets
8.4 Scope of International Financial Management
Management of working capital
Financing decisions
Taxation
8.5 Summary
8.6 Glossary
8.7 Terminal Questions
8.8 Answers
8.9 Caselet

8.1 Introduction
Understanding the role of financial management for international business is
of immense importance Overseas business operations may require funding
of a new venture as the firm has been planning to extend its business
basically from a domestically focused business model to the one that is
internationally oriented. In the globalised era; each firm wishes to extend its
activity to various markets due to a variety of reasons such as generating
economies of scale; higher profit margins; better returns; increased
productivity; technological development and enhanced experiences from
international buyers. This can be achieved by ensuring the proper planning
and execution of a financial plan for the successful conduct of international
business.

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The main aim of international finance management is to maximise the

organisations value that in turn will increase the impact on the wealth of the
stockholders. When the doors of liberalisation opened, entrepreneurs
capitalised on the opportunity to step out to conduct business in different
parts of the world.
International trade gave way for the growth of international business. For a
corporation to be successful, it is vital to manage the finance and business
accounts appropriately. The rise in significance and complexity of financial
administration in a global environment creates a great challenge for financial
managers. The contributions of different financial innovations like currency
derivative, international stock listing, and multicurrency bonds have
necessitated the accurate management of the flow of international funds
through the study of international financial management.
In this unit, you will study about international financial management,
covering in brief the components of international financial management. We
will also study about its scope covering the aspects of financial decisions,
taxation and management of working capital.
Objectives:
After studying this unit, you should be able to:
differentiate between domestic and international financial management.
describe the various components involved in international financial
management.
discuss the scope of international financial management.

8.2 Overview of International Financial Management

In this section we will discuss the evolution of international financial
management and also distinguish between domestic and international
financial management.
The term Financial Management refers to the proper maintenance of all
monetary transactions of the organisation. It also means recording of
transactions in a standard manner that will show the financial position and
performance of the organisation. Financial Management can be categorised
into domestic and international financial management.

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Domestic financial management refers to managing financial services within

the country. International financial management refers to managing and
sharing finance between the countries.
8.2.1 Evolution
International Financial Management (IFM) came into existence when the
countries all over the world started opening their doors to each other. This
phenomenon is also called liberalisation. Since the end of the Second
World War, the integration in terms of foreign activities has grown
substantially. Firms of all types are now opting to operate their business and
deploy their resources abroad. However, differences between countries
have persisted giving rise to the prevalence of market imperfections.
As a result, the fundamental financial decisions have now advanced to
cross-border complexities. The choices to be made with respect to
investment, capital raise, acquisition activity, restructuring as well as various
aspects of financial policy requires financial considerations. Whenever
decisions are taken, the managers must analyse difference in tax rules,
country risk factors, exchange rates and variation in legal rules.
IFM has four distinct modules as follows:

Currencies and asset prices The basic mechanisms of exchange

rates, assets prices in global markets and currencies that influence stock
prices are explained in his module.

Multinational financial decision making The decisions of

multinational firms pertaining to capital structure, tax optimisation and
risk management are clarified.

In addition, this module covers the following aspects:

The way in which the firms take advantage of subsidiaries around

the world.

The association of firms with local firms.

The exposure of firms to the trade rates.

The tax considerations feature into internal financial decisionmaking.

Cross-border valuation and financing The financial decisions and

valuation techniques to be modified in a cross-border setting is covered
in this module.

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In addition, this module covers the following aspects:

The consideration on the price of capital around the world.
The assessment of investments in order to raise the markets.
The profit made by the firms through their financing and investment
decisions as a result of market imperfection.
Institutions and finance The inconsistent formal and informal institutional
arrangements will result in a major impact on financial decision making. It
focuses on the differences in legal rules, particularly variation in the legal
protection of creditors and shareholders affecting investment and reforming
decisions. In addition, the emphasis on the significance of informal
institutional arrangements and relationship building, emerging markets using
cases on merger and acquisition is also covered.
8.2.2 Domestic versus international financial management
The management of finance in domestic and international business is
considerably different. The four major aspects which distinguish
international management from domestic financial management are the
introduction of foreign exchange, political risks, market imperfection and
enhanced opportunity set. They are explained as follows:

Foreign exchange risks The foreign exchange risks states the

fluctuation or variation in the prices of currency which will have a
tendency to convert a profitable deal to a loss making one. This creates
a situation of additional risk to the finance manager.

Political risks The political risks may include any changes that will
impact the economic environment of the country. For example, Taxation
rules, Contract Act and so on. This pertains to the management of the
country which can alter the rules of the game in an unanticipated
manner.

Market imperfection The integration of countries in the world

economy, has resulted in differences in transportation costs and
different tax rates. Inadequate markets can force a finance manager to
struggle for best opportunities across the countrys border.

Enhanced opportunity set When business is undertaken in a country

other than native country, it will help expand their chances in business.
In addition, it will enhance the opportunity for the business and diversify
the overall risk.

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The goal of international financial management is to increase the wealth of

shareholders just like in domestic financial management. The goals are not
only limited to the shareholders, but also to the suppliers, customers and
employees. It is also understood that any goal cannot be achieved without
achieving the welfare of the shareholders. Increasing the price of the share
would mean maximising shareholders wealth. The management of the
organisation must decide the currency in which the value of the shares are
maximised.
The international trade is being promoted and shaped by international
institutions called the Bretton Woods Institutions: International Monetary
Fund (IMF), World Bank and World Trade Organisation (WTO) through its
legal initiatives such as the General Agreement of Trade and Tariffs (GATT),
General Agreement on Trade in Services (GATS) and so on.
Multi-National Corporations (MNC) have come into existence due to
liberalisation and international agreements. The MNCs enjoy greater
freedom when compared to the normal companies because of international
setting and best opportunities. Without the knowledge in International
Financial Management, it can be hard for MNCs let alone any international
business entity, to continue in the market because international financial
markets have a totally diverse shape and analytics in contrast to the
domestic financial markets. A sound knowledge in International Financial
Management can assist an organisation to accomplish similar competence
and effectiveness in all markets.
Activity 1
Play the role of a financial manager of XYZ company and describe the
way you would manage the finance and accounting of your company.
Hint: The four major aspects.
Self Assessment Questions 1
1. International financial management started with ______.
2. The management of finance in domestic and international business is
considerably different. (True/False)

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3. The _______ may include any changes that will impact the economic
environment of the country.
a) Foreign exchange
b) Political risks
c) Market imperfection
d) Enhance opportunity set

8.3 Components of International Financial Management

The components like foreign exchange market, foreign currency derivatives,
international monetary markets and international financial markets which are
essential to the international financial management, are discussed in this
section.
8.3.1 Foreign exchange market
The foreign exchange or the forex markets facilitates the participants to
obtain, trade, exchange and speculate foreign currency. The foreign
exchange market consists of banks, central banks, commercial companies,
hedge funds, investment management firms and retail foreign exchange
brokers and investors. It is considered to be the leading financial market in
the world. It is vital to realise that the foreign exchange is not a single
exchange, but is created from a global network of computers that connects
the participants from all over the world.
The foreign exchange market is quite big and includes various functions
including funding of cross-border investment, loans, trade in goods, trade in
services and currency speculation. The participant in a foreign exchange
market will normally ask for a price.
The trading in the foreign exchange market may take place in the following
forms:

Outright cash or ready foreign exchange currency deals that take

place on the date of the deal.

Next day foreign exchange currency deals that take place on the next
working day.

Swap Simultaneous sale and purchase of identical amounts of

currency for different maturities.

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Spot and Forward contracts A spot contract is a binding obligation

to buy or sell a definite amount of foreign currency at the existing or spot
market rate. A forward contract is a binding obligation to buy or sell a
definite amount of foreign currency at the pre-agreed rate of exchange,
on or before a certain date.
Depreciating Rupee Bleed Indian company in Overseas Debt
Servicing
Depreciation of Indian rupee in the recent months has made Indian banks
jittery about companies that have substantial overseas payments coming
due. Companies, which have not hedged themselves against such
volatility and resultant increased payments are sweating in accessing the
loans from Indian banks as they dont want to default in the overseas
market. Tight monetary policy coupled with reduced liquidity in system
has made their job worse as Indian banks are overstretching themselves
to help such companies restructure their debt.
Indian companies owe overseas loans and borrowing worth $5 billion or
280000 crore rupees. The problem is that a majority of them are foreign
currency convertible bonds and if they are converted into equity, Indian
companies shall be in long-term loss as they have to issue more shares
due to a depreciated value of the rupee. Most companies are interested
in redeeming their FCCBs by accessing finances from domestic markets.
In such a scenario, Indian banks are quite wary as more and more
companies are seeking to enter corporate debt restructuring (CDR)
programmes, which involves renegotiating repayments and interest rates.

8.3.2 Foreign currency derivatives

Currency derivative is defined as a financial contract that seeks to swap two
currencies at a predestermined rate. It can also be termed as the agreement
where the value can be determined from the rate of exchange of two
currencies at the spot. The currency derivative trades in markets that
correspond to the spot (cash) market. Hence, the spot market exposures
can be enclosed with the currency derivatives. The main advantage from
derivative hedging is the basket of currency available.
Figure 8.1 describes the examples of currency derivatives. The derivatives
can be hedged with other derivatives. In the foreign exchange market,
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currency derivatives like the currency features, currency options and

currency swaps are usually traded. The standard agreement made in order
to buy or sell foreign currencies in future is termed as currency futures.
These are usually traded through organised exchanges. The authority to
buy or sell the foreign currencies in future at a specified rate is provided by
currency option. These will help the businessmen to enhance their foreign
exchange dealings. The agreement undertaken to exchange cash flow
streams in one currency for cash flow streams in another currency in future
is provided by currency swaps. These will help to increase the funds of
foreign currency from the cheapest sources.

Figure 8.1: Example for Foreign Currency Derivatives

Some of the risks associated with currency derivatives are:

Credit risk takes place, arising from the parties involved in a contract.
Market risk occurs due to adverse moves in the overall market.
Liquidity risks occur due to the requirement of available counterparties to
take the other side of the trade.
Settlement risks similar to the credit risks occur when the parties
involved in the contract fail to provide the currency at the agreed time.

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Operational risks are one of the biggest risks that occur in trading
derivatives due to human error.
Legal risks pertain to the counterparties of currency swaps that go into
receivership while the swap is taking place.

8.3.3 International monetary systems

The international monetary systems represent the set of rules that are
agreed internationally along with its conventions. It also consists of set of
rules that govern international scenario, supporting institutions which will
facilitate the worldwide trade, the investment across cross-borders and the
reallocation of capital between the states.
International monetary systems provide the mode of payment acceptable
between buyers and sellers of different nationality, with addition to deferred
payment. The global balance can be corrected by providing sufficient
liquidity for the variations occurring in trade. Thereby it can be operated
successfully.
The gold and gold bullion standards
The first modern international system was the gold standard, which
operated between the late 19th and early 20th centuries. It enabled nations
using gold coins of standard specification to enjoy free circulation. Under the
system, the gold happened to be the only standard. The stabilising influence
of gold is what gives the system its advantages. Any nation which had more
exports than imports would be paid in gold for its balance payment. This in
turn has resulted in the lowered value of domestic currency. The higher
prices lead to the decreased demands for exports. The sudden increase in
the supply of gold may be due to the discovery of rich deposit, which in turn
will result in the increase of price abruptly.
In the 1920s the gold bullion standard replaced the gold standard leading to
the cessation of gold coins being minted. Their currencies instead were
with gold bullion which was bought and sold at a fixed price. This system
was ended by the next decade.
The gold-exchange system
Trading was conducted internationally with respect to the gold-exchange
standard following World War II. In this system, the value of the currency is
fixed by the nations with respect to some foreign currency but not with
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respect to gold. Most of the nations fixed their currency to the US dollar
funds in the United States. With a view to maintain a stable exchange rate at
the global level, the International Monetary Fund (IMF) was created at the
Bretton Woods International Conference held in 1944. Uptil the 1970s the
US gold reserves continued to be drained. When the US discarded the gold
convertibility in 1971, the world was devoid of a single international
monetary system.
Floating exchange rates and recent development
After the abundance of the gold convertibility by the US, the IMF in 1976
decided to be in agreement on the float exchange rates. The gold standard
was suspended and the values of different currencies were determined in
the market. The Japanese Yen and the German Deutschmark
strengthened and turned out to be increasingly important in international
financial market; at the same time the US dollar diminished in importance. In
1999 the Euro replaced the currencies and became the most commonly
used currency in the international market second only to the dollar. The
better exchange rates enticed many large companies to choose the Euro
over the Dollar when in bond trading. Very recently some of the members of
Organisation of Petroleum Exporting Countries (OPEC) such as Saudi
Arabia, Iraq have opted to trade petroleum in Euro than in Dollar.
8.3.4 International financial markets
Independent markets that are not under the authority of any one country and
the financial markets of each country are linked by international foreign
markets. What governs the heart of the international financial market is the
market where international trade and investment dominates foreign
currencyAs a result the purchase of currency preceeds the purchase of
services and goods.
The purpose of international securities markets, international capital
markets, international money markets and foreign currency markets is
stated below:

The foreign currency markets An international market that has no

central place for trading to take place or is familiar in structure may be
also called a foreign currency market. The market is actually the
telecommunications like among financial institutions around the globe
and opens for business at any time. The greater part of the worlds that

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deal in foreign currencies is still taking position in the cities where

international financial activity is centred.

International money markets A market for accounts, deposits or

deposits that include maturities of one year or less may be
conventionally said to be an international money market. An example of
this is the Euro currency markets which make up a huge financial market
that does not fall under the governance and supervision of world
governmental and financial authorities.. The Euro currency market is a
money market for depositing and borrowing money located outside the
country where that money is officially permitted tender. Further, Euro
currencies are bank deposits and loans existing outside any particular
country.

International capital markets The capital markets of individual

countries are linked by international capital. . It also comprises a
separate market of their own, the capital market that flows in to the Euro
markets. The firms enjoy the freedom to raise capital, debit, fixed or
floating interest rates and maturities varying from one month to thirty
years in an international capital markets.

International security markets The continued opportunity to provide

large portion of the international financial needs of the government and
business have allowed the banks to experience the greatest growth in
the past decade. The international security market includes private
placements, bonds and equities.

The enormous growth in the trading of foreign currency can be attributed to

the following:

Deregulation of international capital flows Most of the deregulation

that has characterised the past ten to fifteen years has made the
movement of currencies and capital around the globe very easy.

Gain in technology and transaction cost efficiency In addition to

the performance of exchange and trading, advancements in technology
is also taking place in the distribution of information. This has greatly
impacted the capacity of individuals in these markets to accomplish
instantaneous arbitrage.

Market upswings Over recent years the financial markets have

become increasingly volatile., Adding to the enthusiasm for moving

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further capital at faster rates are the faster swings in interest rates and
faster swings in the stock values.
Self Assessment Questions 2
4. A _______ needs a more complex calculation.
5. The greater part of the worlds deal in foreign currencies is still taking
place in the cities where international financial activity is centered.
(True/False)
6. The ________ provides links among the capital markets of individual
countries.
a) Foreign currency markets
b) International security markets
c) International capital markets
d) International money markets

8.4 Scope of International Financial Management

The list of all functions, activities and the decision regarding the
management of international business defines the scope of IFM.
8.4.1 Management of working capital
The device of finance is the working capital management. The management
of current assets and current liabilities is associated with the working capital.
The main goal of working capital management is to guarantee that the firms
maintain their operations normally and have adequate cash flow to satisfy
short-term debt and forthcoming operational expenses.
Let us discuss some of the working capital policies which serve as
guidelines to business. They are as follows:

Liquidity policy The manager can increase the amount of liquidity in

order to reduce the risk of business. If the production has high amount of
cash and bank balance, then business can simply pay its dues at
maturity. It is the responsibility of the finance manager to know that the
excess cash will not produce the required earnings but willInstead,
decrease return on investment. Therefore liquidity policy should be
optimised.

Profitability policy In this case the finance manager will maintain a

low amount of cash in business and aim to invest maximum amount of

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cash and bank balance. It will guarantee that the profit of business will
rise due to the increase of investment in the correct way. But the risk of
business will also increase because liquidity of business will reduce and
can ruin the business. So, profitability policy must be done following the
liquidity policy and provide for proper management of the working
capital.
Need for working capital management
After understanding the nature of production, we can make an estimation of
the working capital. For exampleIf the company produces under a large
scale and continues producing goods, tit will need a high amount of working
capital.
The high amount of working capital will decrease the return on investment,
whereas low amount will increase the risk of business. Therefore it is
necessary to get optimum level of working capital where both the profit and
risk will be balanced. If the manager supervises the cash, nonpayer and
inventory, then the working capital will repeatedly optimise.
8.4.2 Financing decisions
The way of arranging finance refers to the raising of capital. The financing
decision has to consider the following factors:

Flexibility The financing decisions made today will have an impact on

the future. If the business anticipates increasing its capital in the future,
it cannot exploit the use of debt today. Hence correct flexibility with
future financing decisions must be taken.

Risk There are chances to increase risk by financing with the use of
debt. There exists a limit on the amount of debt to be used to finance our
business. A high amount of debt can result in economic failure.

Income Financing can persuade earnings and thus influence return on

equity. If we are anxious concerning returns to equity shareholders, then
the financing decision will require an adjustment. Income is also
influenced by the capability to receive benefit of tax deductions for
interest on debt.

Control If we have concerns regarding control over the organisation,

we will need to judge how financing will change control. Financing
decisions are associated with either ownership (equity) or creditors
(debt).

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Time To take the advantage of market place, the financing decision

needs to be timed. The type of securities to be sold, length of maturity to
be used for debt financing should be decided.

Refinancing risk
One of the main aims of financing decisions is to go with the maturity of
liabilities with the life expectancy of assets. This will allow the liabilities to be
self-liquidating. There are chances of facing refinancing risk if the maturity of
liabilities is less than the life expectancy of assets. Here, the capital has to
be raised to pay off liabilities. In either case there will be abundance of
assets around to pay off debts if the maturity of liabilities is longer than the
life expectancy of assets.
Inflation
As a result of using debt financing in periods of high inflation, one will pay
back the debt with currencies that are worthless. While expectations of
inflation increase, the rate of borrowing will be raised since creditors must
be compensated for a loss in value. Since inflation is a main motivating
force behind interest rates, the financing decision should be aware of
inflationary development.
8.4.3 Taxation
Taxation plays a vital role for the worldwide operation of firms. The tax
decision or taxation which is relevant in domestic firms has become central
to various financing decisions involving fund raising decisions, international
investment decisions, international working capital decisions and decisions
related to dividend and other payments.
The various reasons why international corporations find managing taxation
an extremely difficult issue are stated below:
Multiple tax jurisdictions or authorities with diverse tax rates and irregular
administration of the tax system in areas firms are expected to work in.
A more complex interaction of varying descriptions of the tax base
determine the ultimate tax load in the framework of international firms.
The difference in tax treatment in different nations will direct to
distortions in worldwide trade and investment. The companies which are
situated in the low-tax country can have a periphery over other firms in
worldwide market. There are possibilities to divert the investment to
those countries that have low cost rates.
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Internation firms overlap with different tax jurisdictions and this enables
them to utilise the arbitrage opportunities which helps them retain an
edge over the domestic firms.

The bases of international tax system are:

Tax neutrality To keep the economic efficiency from being affected

the international tax system should remain neutral.For the nationality of
the invester or the locality of the investment not to be influenced, a
neutral tax is important. . Such an environment will allow capital to move
from a nation with lesser return to a nation with higher return, resulting in
well allocated resourses that will ensure a high gross world output..

Tax equity The principle of tax equity states that all equally positioned
tax players contribute in the cost of operating the government according
to the equal rules. The concept of equity can be perceived in two ways.
It is assert by the first view that the input of each tax player must be
consistent with the amount of public services as received. The second
maintains that the contribution of each tax player must be in terms of
their ability to pay. The ability to pay means the one with greater ability is
likely to pay a larger amount of tax.

Avoidance of double taxation The avoidance of double income

asserts that one must not be taxed twice for the same income. However,
double taxation occurs if the recipient of post-tax income in a foreign
country is taxed again. As an alternative, the requirements of foreign tax
credits may be formed in the domestic tax system.

There also exist some tax laws which prevent the tax through artificial
transactions such as transfer pricing. In addition, the corporate structures
will help to reduce the overall tax burden to the enterprise.
Self Assessment Questions 3
7. The device of finance is the ______ management.
8. The financing decisions made today will have an impact on the future.
(True/False)
9. The principle of _______ states that all equally positioned tax payers
should contribute in the cost of operating the government according to
the equal rules.
a) Tax equity.
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b) Tax neutrality.
c) Avoidance of double taxation.
d) Taxation.
Activity 2
Using resources on internet analyse how the financial management
takes place in different countries.
Hint: www.bjreview.com

8.5 Summary
Let us summarise the points covered in this unit about international financial
management:

The International Financial Management came to its existence when the

countries all over the world started opening their doors to each other.
This phenomenon is also called as liberalisation.

The four major aspects which distinguish international management

from domestic financial management are introduction of foreign
exchange, political risks, market imperfection and enhanced opportunity
set.

Components of International Financial Management are foreign

exchange markets, foreign currency derivatives, international monetary
system and international financial markets.

The scope of international financial management includes management

of working capital, financing decisions and taxation.

The policies of working capital management are the liquidity and

profitability policy. The financing decisions consider the factors like
flexibility, risk, income, control and time. The bases of international tax
system include the tax neutrality, tax equity and avoidance of double
taxation.

8.6 Glossary
Arbitrage: The purchase of securities on one market for immediate resale
on another market in order to profit from a price difference.
Denominated: To express in terms of the monetary unit.
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Equity: Funds provided to the business by the sale of stock.

Hedging: It is the method of reducing the risk of loss caused by price
variations.
Inflation: The term refers to a persistent increase in the level of consumer
prices or a persistent decline in the purchasing power of money, caused by
an increase in available currency and credit beyond the proportion of
available goods and services.
Liquidity: The term refers to the volume of transactions. With sufficient
buyers and sellers, a market enjoys continuous offers, bidding, and
consummated transactions, thus achieving market liquidity.

8.7 Terminal Questions

1.
2.
3.
4.
5.

Explain domestic versus international financial management.

Discuss about the foreign currency derivatives.
Explain the need for international financial market.
State the management of working capital.
Explain the importance of taxation.

8.8 Answers
Self Assessment Questions 1
1. Liberalisation
2. True
3. Political risks
Self Assessment Questions 2
4. Forward market
5. True
6. International capital markets
Self Assessment Questions 3
7. Working capital
8. True
9. Tax equity

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Terminal Questions
1. Foreign exchange, political risks, market imperfection and enhance
opportunity set are the four major aspects which distinguish
international management from domestic financial management. These
are explained in the subsection 8.2.2. Refer the same for details.
2. A currency derivative as a financial contract in order to swap two
currencies at a predetermined rate. These are explained in the
subsection 8.3.2. Refer the same for details.
3. Deregulation of international capital flows, gain in technology and
transaction are the causes normally given for the enormous growth in
the trading of foreign currency. These are explained in the subsection
8.3.4. Refer the same for details.
4. The working capital policy which serves as guidelines to business are
liquidity policy, profitability policy and the need of working capital
management. These are explained in the subsection 8.4.1. Refer the
same for details.
5. The managing of taxation is an extremely difficult issue for the
international corporations. The basis of international tax system
includes tax neutrality, tax equity and avoidance of double integration.
These are explained in the subsection 8.4.3. Refer the same for details.

8.9 Case-let
XYZ Fruit Beverage Company
M/s. XYZ Company was in the business of making fruit beverages. The
said M/s. XYZ intended to expand its market and started exporting fruit
beverages to Japan. Subsequently, it so happened that the Japanese
Government, imposed higher tax on the fruit beverages imported from
other countries into Japan. The Japanese Government with intention to
protect its own domestic market imposed a lesser tax to domestic
producers compared to the foreign producers.
Discussion Questions
1. What do you think would be the strategy of XYZ Company in protecting
their business interests?
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(Hint: The XYZ Company can work out a possible option of a joint
venture with the domestic producer which would help them pay similar
tax to that of domestic producers.)
2. How relevant is the concept of political risk to the managerial
decisions of a Company and whether sufficient recourse is available in
the international forum to mitigate such risks?
(Hint: The Japanese Government introduced new tax rules for foreign
alcohol. However the countries do not have the liberty to impose unfair
rules rather every country has to treat everybody equally. As a risk
mitigation strategy, the XYZ Company through its country can approach
the WTO Dispute Settling Union (DSU) against such discriminatory rules.
Source: http://www.nuigalway.ie/law/GSLR/1998/case6.html

References:

Sharan, Vyuptakesh. (1998). International Financial Management, Fifth

edition. PHI learning Private Limited.

Kevin. (2009). Fundamentals of International Financial Management.

Pearson Publications.

Gary Shoup.(1998).The International Guide to Foreign Currency

Management.

E-References:

http://www. brainmass.com, retrieved on 5th November 2010

http://finance.mapsofworld.com/foreign-exchange-market/ retrieved on
1st November 2010

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