Professional Documents
Culture Documents
An Overview
Objectives
To identify factors that have led to the prominence of
international finance
To explain the role of the financial manager
To verify the internationalisation of finance
To identify the developments leading to the formation
of the present financial environment
To examine the causes and consequences of the
global financial crisis
1-2
Introduction
International finance as studied here deals with the
financial operations of business firms in an
environment of open and integrated financial
markets
The world of finance has changed as a result of the
global financial crisis
1-3
(cont.)
Copyright 2010 McGraw-Hill Australia Pty Ltd
PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa
Slides prepared by Afaf Moosa
1-4
(cont.)
Copyright 2010 McGraw-Hill Australia Pty Ltd
PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa
Slides prepared by Afaf Moosa
1-5
1-6
(cont.)
Copyright 2010 McGraw-Hill Australia Pty Ltd
PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa
Slides prepared by Afaf Moosa
1-7
1-8
1-9
(cont.)
Copyright 2010 McGraw-Hill Australia Pty Ltd
PPTs t/a International Finance: An Analytical Approach 3e by Imad A. Moosa
Slides prepared by Afaf Moosa
1-10
1-11
1-12
1-13
1-14
1-15
Post-war developments
The economic and financial environment within
which business firms operate is the product of some
developments that followed World War II
1-16
1-17
2. Currency convertibility
European currencies became convertible in the late
1950s
The yen became convertible in the early 1960s
1-18
1-19
1-20
1-21
-200
-400
-600
-800
-1000
1-22
200
150
100
50
-50
1-23
1-24
-10
-20
-30
-40
-50
-60
1-25
1-26
4000
3200
2400
1600
800
Nominal
Real
1-27
120
100
80
60
40
20
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1-28
1-29
1-30
1-31
1-32
1-33
350
300
250
200
150
100
50
1-34
0.80
0.60
0.40
0.20
1-35
1-36
10
-5
-10
1-37
1-38
1-39
1-40
1-41
14000
12000
10000
8000
6000
1-42
Mortgage originators
Rating agencies
Policy makers and regulators
The role of securitisation
The role of globalisation
1-43