Interest rate parity
Balance of payments
Sterilization (economics)
Foreign exchange risk
Foreign exchange market
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The main theories of international finance include exchange rate dynamics, policy pre-announcement, currency crises, intertemporal optimizing model, exchange rate target zones, open economy endogenous growth, new open economy, game theories, national income accounting, balance of payments, asset approach to exchange rates, money, interest rates, price levels, output and the exchange rate, fixed exchange rates, foreign exchange intervention, international monetary systems, financial globalization, optimum currency areas, and developing countries' growth and reform . These theories cover a wide range of topics such as exchange rates, balance of payments, financial globalization, and the implications of international financial integration . They provide a comprehensive framework for understanding international finance and its impact on economies and markets .
Related Questions
What are some interesting Finance theories?4 answersThere are several interesting finance theories that have been studied in the literature. One such theory is the trade-off theory, which suggests that firms make decisions about their cash management practices based on a trade-off between the costs and benefits of holding cash. Another theory is the pecking order theory, which proposes that firms prefer to finance their investments using internal funds rather than external financing. The free cash flow theory is also significant, as it suggests that managers may hold higher levels of cash in order to maintain control over the firm's financial and investment policies. Additionally, there are theories related to capital structure, capital budgeting, asset valuation, financial behavior, and international finances. Some other interesting theories include the firm-foundation theory, the theory of investment value, the castle-in-the-air theory, and the theory of games and economic behavior. The modern theory of finance encompasses various principles and models, such as the CAPM, option pricing, risk neutral valuation, and behavioral finance. Finally, discounted cash-flow valuation theory, Modigliani and Miller valuation theory, Markowitz portfolio theory, CAPM, arbitrage pricing theory, option pricing theory, and futures valuation and hedging are also important finance theories.What are the modern international trade theories?4 answersModern international trade theories include the theory of international trade from the perspective of supply and demand, the theory of comparative advantages, and the country similarity theory. These theories analyze the factors that determine the directions of foreign trade, such as the export of surplus resources and the import of scarce resources of production. They also consider the role of similarities and differences between countries in promoting trade. Additionally, there are theories that highlight unequal trade relations between countries, such as mercantilism, theories of changing terms of trade, and theories of unequal exchange. These theories emphasize the social and historical context of trade relations and their connection to broader social relations, class relations, and international inequality.What are the different theories related to business finance?4 answersThere are several theories related to business finance. One major theory is the Modigliani-Miller theory, which states that firm values and real investment decisions are not affected by financing. Another theory is the trade-off theory, which suggests that firms balance the tax advantages of borrowing against the costs of financial distress. Agency theories propose that financing decisions are influenced by managers' personal incentives. The pecking-order theory suggests that financing adapts to mitigate problems created by differences in information. Additionally, there is the theory of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts, which form the theoretical basis for managerial finance. Veblen's theory of corporation finance also provides an alternative perspective, analyzing present-day corporate financial management.What are the different theories about foreign investments?5 answersThere are several theories about foreign investments. One theory is the Product Life Cycle Theory, developed by Vernon, which suggests that comparative advantage shifts from one nation to another as a product matures. Another theory is the Transnational companies and monopolistic computation theory, developed by Hymer, which focuses on the role of monopolistic advantages in driving foreign direct investment. The Generalized theory of economic development, developed by Akamatsu, examines the internationalization path followed by financially disadvantaged multinationals domiciled in emerging countries. The competitive advantage of nation’s theory, developed by Porter, emphasizes the role of national competitive advantages in attracting foreign direct investment. The eclectic paradigm and country's investment development theory, developed by Dunning, explores the factors that influence foreign direct investment decisions. Finally, the Differential model of capital distribution between countries by Leontiev examines the distribution of capital between countries.What is one of the most important topic in international finance that is least talk about?5 answersOne of the most important topics in international finance that is least talked about is the governance of financial systems. While there has been significant focus on international financial standards and their nature as "soft law", the study of the financial sector of the global economy has been largely left to specialists in international economics, financial journalists, and international financial practitioners. The interconnectedness of the financial world and the impact of shocks on institutions and markets globally highlight the need for better data and information on aggregate positions and linkages. The academic literature on the governance of financial systems has become problem-centered, focusing on preventing and managing financial crises and understanding the increased complexity of financial systems. This suggests that there is a need for more attention and research on the governance of financial systems in the field of international political economy.
