Due to economic, political and cultural ties, the turnover and flow of monetary funds between countries and regions.
International finance is closely related to a country's domestic finance, but there are also great differences. Domestic finance is mainly bound by a country's financial laws, regulations and rules, while international finance is bound by laws, regulations, international practices and various treaties or agreements formulated by various countries through consultation. Due to different countries' history, social systems and economic development levels, their policies in the field of foreign economic and financial affairs are also very different, and these differences sometimes lead to very fierce contradictions and conflicts.
International finance consists of balance of payments, international exchange, international settlement, international credit, international investment and international monetary system, which influence and restrict each other. For example, the balance of payments will inevitably lead to international exchange and international settlement; The currency exchange rate in international exchange has a great influence on the balance of payments; Many important items in the balance of payments are directly related to international credit and international investment, and so on.
[Edit this paragraph] The composition of international finance
As a discipline, international finance can be divided into two parts: international finance (theory, system and policy) and international financial practice. The former includes: balance of payments, foreign exchange and exchange rate, foreign exchange management, international reserves, international financial markets, international capital flows, international monetary system, regional monetary integration, international financial coordination and global international financial institutions. The latter includes: foreign exchange transactions (including international derivatives transactions), international settlement, international credit, international securities investment and international banking and management.
[Edit this paragraph] [Balance of payments]
Balance of payments According to the definition of the International Monetary Fund, the balance of payments is "the transaction of goods, debts and income between one country and other countries, as well as the change of creditor's rights and debts". International payments are usually calculated on an annual, semi-annual or quarterly basis. A country's balance of payments not only reflects its international economic relations, but also reflects its economic structure and level of economic development.
For a long time, the main problem of international payments is that the international payments of many countries are unbalanced, and countries often have many contradictions and struggles to adjust and improve their international payments. The imbalance of a country's international payments is a frequent phenomenon, and it is very difficult to make ends meet and achieve complete balance. However, whether it is a deficit or a surplus, if the amount is huge and exists for a long time, it will cause a series of adverse consequences. Therefore, governments all over the world will take various intervention measures to improve the imbalance of international payments. The measures taken by one country will often cause other countries concerned to take corresponding confrontational and retaliatory actions, thus weakening or offsetting the role of the country's regulatory measures. In addition, sometimes the way of adjusting the balance of payments runs counter to the requirements of developing the domestic economy. For example, raising interest rates, if it coincides with the economic recovery period, this measure will greatly affect the economic recovery; Moreover, the economic recovery is blocked, which will affect the growth of international trade.
The balance of payments of a country is different from that of a country. The balance of payments is a country's foreign monetary fund receipts and payments, and the balance of payments statement is a record and statistical table compiled by a country according to different projects in a certain period (one year, half a year or a quarter). The balance of payments can comprehensively reflect the overall situation of currency and capital exchange between a country and foreign countries in a certain period, so all countries attach great importance to the compilation of the balance of payments.
[Edit this paragraph] [International remittance]
International exchange refers to the sum of foreign exchange rate, foreign exchange market, foreign exchange control and other arrangements and activities arising from international payment.
Foreign exchange generally refers to foreign currency and foreign currency payment vouchers as means of international payment, international circulation and purchase. After gold and silver become money, precious metals are the main means of international payment. After the bill appears, it can also be used as a credit tool to handle international payment. Exchange rate is the price of another country's currency expressed in one country's currency. When the gold standard was implemented, the exchange rates of currencies in various countries fluctuated little and were in a relatively stable state. 1929 ~ 1933 after the economic crisis, the gold standard system completely collapsed, and the paper money system that cannot be exchanged for gold began to appear. Due to the long-term existence of inflation, paper money is constantly depreciating, and exchange rate instability in various countries is becoming increasingly serious. After the Second World War, the major capitalist countries established the Bretton Woods system centered on the US dollar. The US dollar was linked to gold, and national currencies were linked to the US dollar, thus setting a fixed exchange rate for national currencies. The fixed exchange rate system has played a positive role in the development of the world economy after the war. 1973, the fixed exchange rate system centered on the US dollar was completely disintegrated, and various countries implemented floating exchange rate systems one after another. Since then, because there is no fixed exchange rate system, the exchange rate fluctuates frequently and greatly, which has a great influence on foreign trade of various countries. To this end, all countries in the world control or interfere with the dynamics of their own exchange rates to a certain extent.
Foreign exchange control is the restriction and management of international exchange and international settlement between a country and foreign countries in order to safeguard its economic rights and improve its international balance of payments. Almost all contemporary countries have implemented foreign exchange systems that are beneficial to their own countries to varying degrees, but the ways, methods and specific contents are different.
[Edit this paragraph] [International settlement]
International settlement refers to the international transfer of monetary income and expenditure between two parties in different countries. It mainly includes payment methods, payment conditions and settlement methods.
The ways and means of international settlement are spontaneously produced in the economic exchanges of various countries, and the main international settlement methods such as remittance, collection and letter of credit are the products of history. From 1960s to 1980s, modern means such as computer, telex and TV transfer were widely used, and the technical level of settlement was greatly improved.
International settlement is a highly technical international financial business, which involves many complicated social and economic problems. Countries or groups of countries with different social systems and different levels of economic development often have various contradictions and conflicts in the requirements and choices of international settlement methods. All countries strive to adopt the most favorable settlement method for their own countries.
[Edit this paragraph] [International credit]
International credit is the lending behavior of the International Monetary Fund. The earliest bill settlement was the beginning of IMF lending. After centuries of development, almost all activities in modern international finance are closely related to international credit. Without the endless circulation of international borrowing funds, international economic and trade exchanges cannot be carried out smoothly. International credit mainly includes: international trade credit, government credit, loans from international financial institutions, bank credit, bond issuance, compensation trade, lease credit, etc.
International credit is closely related to the international financial market. International financial market is an important condition for the development of international credit, and the expansion of international credit in turn promotes the development of international financial market. The international financial market can be divided into two markets according to the length of capital lending. One is the money market, that is, the international short-term capital lending market; The second is the capital market, that is, the international medium and long-term capital lending market. The largest international financial market is the European currency market, and the borrowing capital of this market is the European currency that is not controlled by laws and regulations of various countries. Eurodollar is the main currency market in Europe, followed by Euromark. And the Asian dollar market. The European money market is the supply and demand center of huge international funds. It, together with many other international financial markets and offshore financial markets extending from it, has brought financial activities all over the world into a huge financial network, further developing the internationalization of loan funds.
[Edit this paragraph] [International investment]
Foreign official and private investment is usually global international investment. International investment is an activity in which monetary capital is transferred from one country to another to gain more profits. Before World War II, international investment was almost all the capital output of capitalist countries. After the war, the Soviet Union and Eastern European countries began to invest in developing countries. At the same time, some developing countries began to participate in foreign investment activities, mainly oil exporting countries. From the 20th century to the early 1980s, more than 40 developing countries invested abroad.
After 2 1 century, international investment has entered a new financial and economic era, and hedge funds have played an inter-generational role.
[Edit this paragraph] [International monetary system]
An international system formed spontaneously or through consultation between currencies of various countries on the currency and exchange rate arrangements used in international exchange. This is an important part of the international financial field. The original international monetary system was the gold standard. After World War II, the capitalist world established an international monetary system centered on the US dollar. On the one hand, this system promoted the recovery and development of post-war economy and world trade in capitalist countries through the fixed exchange rate system; On the other hand, it makes the dollar equal to gold, becomes a generally accepted means of international payment, international circulation and purchase, and is also an important part of foreign exchange reserves in many countries. Later, with the economic recovery and development of other capitalist countries, the currencies of these countries began to be on an equal footing with the US dollar. After the depreciation of 1973 dollars again, the international monetary system established by the Bretton Woods Conference collapsed. The floating exchange rate system replaced the fixed exchange rate system.
Since the 1960s, the international community has discussed the reform of the international monetary system many times, and revised the International Monetary Fund Agreement twice in 1969 and 1978. However, due to the contradictions and conflicts among countries, the difficulties and defects in the international monetary system have never been solved.
The training goal of international finance major is to train senior professionals who can engage in international financial business, international trade business and teaching and scientific research in banking system, non-bank financial institutions and companies. Graduates basically master the basic theories of economic disciplines; Systematically master the basic theories of international finance such as foreign exchange, foreign investment and international settlement, the management methods of modern banks, and the basic knowledge and skills related to trust investment and capital financing; Familiar with China's laws, principles and policies on international finance; Proficient in English, with strong listening, speaking, reading, writing and translation skills, able to engage in business work in English.
The main courses of international finance include political economy, western economics, finance, international economics, monetary banking, international financial market, international trade practice, international financial management, international settlement, foreign exchange bank accounting, insurance introduction, investment project evaluation, English correspondence, etc.
The training goal of international finance major is to train senior professionals who can engage in international financial business, international trade business and teaching and scientific research in banking system, non-bank financial institutions and companies. Graduates basically master the basic theories of economic disciplines; Systematically master the basic theories of international finance such as foreign exchange, foreign investment and international settlement, the management methods of modern banks, and the basic knowledge and skills related to trust investment and capital financing; Familiar with China's laws, principles and policies on international finance; Proficient in English, with strong listening, speaking, reading, writing and translation skills, able to engage in business work in English.
The main courses of international finance include political economy, western economics, finance, international economics, monetary banking, international financial market, international trade practice, international financial management, international settlement, foreign exchange bank accounting, insurance introduction, investment project evaluation, English correspondence, etc.
International financial books
[Edit this paragraph] Basic information
Authors: Qian Rongkun and other editors.
Press: Nankai University Press
Release date: 2002- 1 1
Words: 357000
Page count: 394 pages
Page number: 16
Industrial and commercial bank number: 97873 100 17348
Packing: paperback
Category: Books >> Management >> Finance/Investment >> International Financing
Pricing: ￥ 18.00
[Edit this paragraph] Introduction
This textbook is more suitable for undergraduate students majoring in finance and junior students admitted to MBA. Learning this textbook requires the basic theoretical basis of micro, macroeconomics and monetary banking, as well as the basic knowledge of enterprise finance and accounting.
This textbook is divided into four parts: the first part is the basic chapter, including three chapters, namely, international payment system, balance of payments account, foreign exchange and exchange rate. The main content is to show the origin of international currency and international financial transactions, which is the basis of this book's analysis. The second part is the market chapter, including four chapters: foreign exchange market, exchange rate determination theory, international financial market and financial management of multinational companies. The main content is to analyze the operating mechanism and market environment of the international financial market, and how enterprises use the international financial market for investment, financing and risk management. The third part is the chapter of capital flow, including four chapters, namely, balance of payments theory, balance of payments adjustment, international reserves, international capital flow and international financial crisis. The main content is to analyze the mechanism of balance of payments and the causes of imbalance, as well as the profound impact of balance of payments adjustment and related international capital flows on different types of economies. The fourth part is policy, including four chapters, namely exchange rate policy, macroeconomic policy under the condition of open economy, international monetary system and international financial institutions. The main content is to show the macroeconomic internal and external equilibrium and macroeconomic policy coordination among countries under the condition of open economy, and the book ends with international monetary cooperation.