International financial management involves managing financial resources on a global scale. Capital is the most mobile and inexpensive global factor of production due to dismantling of trade barriers. Organizations require international capital sources for purposes like establishment, working capital, collaboration, and expansion. Common sources of international capital include foreign direct investment, foreign institutional investment, overseas equity markets, foreign currency bonds, and loans from multilateral development banks. Managing financial resources globally provides benefits like availability of funds, risk diversification, and access to international markets, but also involves risks like foreign exchange risk and economic/political risks in foreign markets.