1. Chapter - 34
International Financial
Management

2. Chapter Objectives
 Understand how the foreign exchange market
operates.
 Explain the relationship between interest
rates, inflation rates and exchange rates.
 Focus on the techniques that can be used to
hedge the foreign exchange risk.
 Illustrate how the international capital
budgeting decisions are made.
 Highlight the methods of financing
international operations.
Financial Management, Ninth Edition © I M Pandey 2
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