Aspect of international finance


Problem:

You have been tasked to brief the finance team on an aspect of international finance and then to lead a discussion with the firm's finance team.

The briefing is needed to provide more foundation for the finance team because they are not well versed in the international aspects of finance. Provide a briefing describing when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.

Next, discuss and advise if the firm should reinvest its profits in a country where they are generated rather than repatriate them to the United States because of tax implications. Consider if the exchange rate is a bigger concern.

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Finance Basics: Aspect of international finance
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