International Finance (BFT 204/3)

Multinational Corporation (MNC) is an organisation doing business in more than one nation. MNC produces/markets, invests imd operates across the globe. A MNC engages in various activities like exporting/importing and manufacturing in different countries. MNCs have worldwide involvement and an international perspective in its management and decision-making. MNCs invest considerably in opportunities of production and take managerial decisions based on a global perspective, by integrating operations. MNCs are huge industriallbusiness organisations. MNCs (Transnational) mostly uses the inputs of the host country where it operates unlike a multinational corporation.

International Financial Management has assumed an important role of the Indian economy, with FFIs and FIls playing a key role in the stock and capital markets. The recent estimate is that FIls hold about 18% of market capitalisation of the listed companies in the Stock Exchanges in India. Many Indian corporates are listed and traded on Foreign Stock Exchanges. Many foreign banks were permitted to operate in India and Indian banks here become more globalised in their operations India's exports are growing at a rate of 12%, as per annum envisaged in the Tenth Plan. Nearly more than 50% of the manufacturing output in India is exported on an average. The total export and import trade crossed U.S. $ 100 billion and its foreign exchange assets are also more than U.S. $ 130 billion. With such growing importance of external sector, the operations in International finance are also growing faster than ever before.

Intensifying global financial liberalization and integration has been accompanied by increased financial volatility over the past two decades. This has been revealed most dramatically by the Asian financial crisis and the more recent crisis in Argentina. These and lesser-known crises in emerging economies have focused attention on determining the most appropriate role for international and national financial institutions to play. This volume offers a wide-ranging overview of the problems and possible policy responses involved in resolving the issues discussed.

The book "International Finance in Emerging Markets" reviews contemporary issues in international monetary and financial economics in an emerging financial market using the example of Thailand. The book adopts the elements of new welfare economics and asymmetric information paradigms in analyzing those issues including financial liberalization, crisis, exchange rate determination, and domestic capital market reform. The book suggests for the first time a normative social approach for addressing the contemporary issues in international monetary and financial economics. It provides an example of  cutting edge research in international finance and monetary economics within a welfare economics framework. It also suggests some policy implications of the welfare economic analysis of international financial issues in an emerging market. " This book addresses contemporary issues in international monetary policy and finance from a welfare economics perspective, focusing on emerging market nations such as Thailand. It is a welcome contribution to the international finance literature."Prof. Steven L. Schwarcz, Stanley A. Star Professor of Law & Business, and Founding Director, Global Capital Markets Center, Duke University, USA