What Is International Finance?

International finance (: international finance) is the turnover and movement of monetary funds between countries and regions due to economic, political, and cultural links. International finance consists of balance of payments, international exchange, international settlement, international credit, international investment, and the international monetary system. They affect each other and restrict each other. For example, the international balance of payments inevitably produces international exchange and international settlement; the currency exchange rate in international exchange has a significant impact on the balance of payments; many important items of international balance of payments are directly related to international credit and international investment.

International finance

(Subject)

International finance is both closely linked and very different from a country's domestic finance. Domestic finance is mainly governed by a country's financial laws, regulations and rules, while international finance is governed by laws, regulations and international practices that are different from country to country, and by various treaties or agreements negotiated through each country. Due to the differences in the history, social systems, and economic development levels of different countries, the policies and policies adopted in the foreign economic and financial fields are very different. These differences sometimes lead to very fierce contradictions and ^[1]

International finance as a discipline can be divided into two components:

Balance of payments

International settlement refers to the conduct of international currency revenue and expenditure transfers to settle transactions between two parties in different countries. It mainly includes payment methods, payment conditions and settlement methods.

The main international settlement methods are

Official and private foreign investment in each country is generally global

Spontaneous or negotiated international systems concerning currencies used in international exchanges and exchange rate arrangements between currencies of countries. This is an important part of the international financial field. The original international monetary system was the gold standard. After the Second World War, the capitalist world established an international currency system centered on the US dollar. On the one hand, this system promoted the restoration and development of the post-war economy and world trade of capitalist countries through a fixed exchange rate system. , Means of international circulation and means of purchase, and become 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 have begun to play a role comparable to that of the US dollar. After the dollar depreciated again in 1973, the international monetary system established by the Bretton Woods conference collapsed. The floating exchange rate system has basically replaced the fixed exchange rate system globally.

Since the 1960s, the international community has repeatedly discussed the reform of the international monetary system, and the International Monetary Fund Agreement was amended twice in 1969 and 1978. However, due to the contradictions and conflicts between countries, the difficulties and deficiencies in the international monetary system have not been resolved.

The training objective of the international finance major is to train senior professionals who are capable of engaging in international financial business, international trade business, and teaching and research in this field in the banking system, non-bank financial institutions, and companies. Graduates have a basic grasp of the basic theories of economics; a systematic grasp of basic international financial theories such as foreign exchange, foreign investment, and international settlement; the management and management methods of modern banks; and the basic knowledge and basic skills related to trust investment and financing; Finance laws, guidelines, and policies; proficient in English, strong listening, speaking, reading, writing, and translation skills, and able to engage in business work in English.

Major courses in international finance include political economics, western economics, finance, international economics, monetary banking, international financial markets, international trade practice, international financial management, international settlement, foreign exchange banking accounting, insurance introduction, investment projects Evaluation, English correspondence, etc.