International finance and their varieties in the global economy

International finance, in contrast tostate and finance of individual economic entities, are a multi-subject category (represented by a large number of entities). This means that the international fund of funds is not available as such, is not concentrated in a specific place and is not the property of a certain subject of the world economy.

International finance is money flows,They are in mutual relations in the sphere of the global economy. The study of this concept helps to improve the management of any funds, the success in the work of world business and provides an opportunity to make optimal decisions that significantly affect the economic policy of any country.

The role of finance in the development of internationalcooperation is expressed in essence the wording of the economic category, which is represented by funds of financial resources. These funds were formed on the basis of the development of international market relations and can be used to ensure sufficient profitability and the continuity of the production of a social product.

International finance in terms ofInstitutions can be represented by a combination of banking systems, various types of exchanges (stock or currency exchanges), international financial and credit institutions, associations, through which the flow of financial flows on a global scale.

World financial resources formthe relevant market, which can be viewed from the standpoint of its functions and the timing of the circulation of assets. By functional features is divided into the currency market, insurance services, loans and shares, and also the derivatives market can be included here. In the listed markets, in turn, different segments are essentially distinguished. For example, in the credit market, segments of bank loans and debt securities are allocated, in the insurance market - reinsurance, etc.

International finance refers to instruments for carrying out activities of global financial organizations with their inherent functions. These include:

- Bank for International Settlements, established in1930 and is the first international bank operating on the basis of an agreement concluded between Britain Belgium, Germany, Italy, France and Japan. The purpose of establishing this banking institution is to promote fruitful relations and cooperation of banks of the participating states, as well as to ensure settlements between them;

- The International Monetary Fund was established in March 1947year in the form of a specialized UN body. Its capital was formed due to the contributions of participants, and the main functions are: creating financial support for the development of international trade, supporting foreign exchange cooperation and eliminating restrictions in foreign exchange operations, and providing credit to any member country for the formation of a balance of payments.

- International Bank for Reconstruction and Developmentbegan its existence in 1946 in the form of a special body that does not depend on the UN. Its functions include investment activities in developing countries, analytical and advisory activities in the economic sphere, intermediary services in the redistribution of resources between different segments of the population.

Returning to the original formulation,international finance is based on three analytical "elephants": achieving the optimization of the use of funds in a certain period of time; valuation of assets such as industrial associations or natural resources; timely detection and management of risk, including loss of financial resources.

Similar news