Introduction to Environment of International Business Finance

International business finance refers to the functions of an international business. Specially, international business finance deals with the investment decision, financing decision, and money management decision.

Before going to discuss balance of payments (BOPs) it is better to have brief knowledge on international financial management, because balance of payment is a factors that affects international business.

International financial environment is totally different from domestic financial environment. That international financial management is subject to several external forces, like foreign exchange market, currency convertibility, international monitory system, balance of payments, and international financial markets (see Fig).