Concept Previews

After reading this chapter, you should be able to:

realize that the currencies of countries change in value in terms of each other

understand how currency value changes affect international business transactions

recognize the tremendous importance of financial management to an international company (IC)

know about financial management tools

understand the growing use of derivatives as hedging devices

explain how financial executives meet, network, and cooperate with their counterparts in other organizations to protect and/or benefit their organizations in derivatives operations.

understand why exporters sometimes accept payment in forms other than money

differentiate between hard, convertible currencies and soft, nonconvertible ones

explain the growing importance of international finance centers to ICs