- International finance
International finance is the branch of economics that studies the dynamics of
exchange rates ,foreign investment , and how these affectinternational trade . It also studies international projects, international investments and capital flows, and trade deficits. It includes the study of futures, options and currency swaps. Together with international trade theory, international finance is also a branch ofinternational economics .Some of the theories which are important in international finance include the
Mundell-Fleming model , theoptimum currency area (OCA) theory, as well as thepurchasing power parity (PPP) theory. Moreover, whereas international trade theory makes use of mostlymicroeconomic methods and theories, international finance theory makes use of predominantly intermediate and advancedmacroeconomic methods and concepts.exchange rate: the price of one currency in terms of another is called exchange rate.
ee also
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International Finance Corporation
*Interest rate parity jitesh
External links
* [http://www.uiowa.edu/ifdebook/ Center for International Finance & Development] University of Iowa research center, includes a 300 page E-book.
* [http://www.iif.com/ Institute of International Finance] The Global Association of Financial Institutions; fostering global financial stability.
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