Seekh Logo

AI-powered learning platform providing comprehensive practice questions, detailed explanations, and interactive study tools across multiple subjects.

Explore Subjects

Sciences
  • Astronomy
  • Biology
  • Chemistry
  • Physics
Humanities
  • Psychology
  • History
  • Philosophy

Learning Tools

  • Study Library
  • Practice Quizzes
  • Flashcards
  • Study Summaries
  • Q&A Bank
  • PDF to Quiz Converter
  • Video Summarizer
  • Smart Flashcards

Support

  • Help Center
  • Contact Us
  • Privacy Policy
  • Terms of Service
  • Pricing

© 2025 Seekh Education. All rights reserved.

Seekh Logo
HomeHomework HelpeconomicsInternational Finance

International Finance

International finance and capital flows refer to the movement of money for investment, trade, or business operations across international borders, influencing economic stability and growth in various countries. This concept encompasses foreign direct investment, portfolio investment, and the exchange of currencies, impacting global markets and economies.

intermediate
5 hours
Economics
0 views this week
Study FlashcardsQuick Summary
0

Overview

International finance is a vital field that examines how capital moves across borders and the implications of these movements on global economies. Understanding capital flows, exchange rates, and foreign investments is crucial for navigating the complexities of the global market. As economies become...

Quick Links

Study FlashcardsQuick SummaryPractice Questions

Key Terms

Capital Flows
The movement of money for the purpose of investment, trade, or business production.

Example: Foreign capital flows into emerging markets can stimulate economic growth.

Exchange Rate
The value of one currency for the purpose of conversion to another.

Example: The exchange rate between the US dollar and the euro fluctuates daily.

Foreign Direct Investment (FDI)
Investment made by a company or individual in one country in business interests in another country.

Example: A US company opening a factory in India is an example of FDI.

Portfolio Investment
Investment in financial assets such as stocks and bonds in a foreign country.

Example: Investing in foreign stocks through mutual funds is a form of portfolio investment.

Hedging
A risk management strategy used to offset potential losses in investments.

Example: Using options to hedge against currency fluctuations is common in international finance.

Global Financial Markets
Markets where financial assets are traded globally, including stocks, bonds, and currencies.

Example: The New York Stock Exchange is a major global financial market.

Related Topics

Global Trade
The exchange of goods and services between countries, influenced by international finance.
intermediate
Foreign Exchange Markets
Markets where currencies are traded, affecting exchange rates and capital flows.
intermediate
Investment Risk Management
Strategies to manage risks associated with investments, particularly in international contexts.
advanced
Macroeconomic Policy
Government policies that influence economic performance, including fiscal and monetary policies.
advanced

Key Concepts

Capital FlowsExchange RatesForeign InvestmentGlobal Markets