The growing interdependence of world markets has increased the importance of
international finance in managing the multinational company (MNC). As a
result, the financial manager must deal with international issues related to taxes,
financial markets, accounting and profit measurement and repatriation,
exchange rate risks caused by doing business in more than one currency, political
risks, financing (both debt and equity) and capital structure, short-term
financing, cash management issues related to hedging and adjustments in operations,
and merger and joint-venture opportunities.