Explore BrainMass

Corporate Finance with an Exchange Rate

Critics of the field of international finance charge that the field is simply "corporate finance with an exchange rate."

Critique this statement.

Do you agree or disagree with it? Why?

Justify your answer with specific details.

Approx. 500 to 700 words. Please include any references

Solution Preview

The statement that we are critiquing is the following: International finance is simply corporate finance with an exchange rate." In my professional opinion, this statement is false. We need to look at the technical definitions of international finance and corporate finance to see the validity in why this statement is false. Corporate finance deals specifically with several areas of finance relating to corporations. This is the department or division where all financial activities are overseen, including activities that involve both domestic and international transactions. The goal of corporate finance is to maximize the value of the company through strategic financial planning. Corporate finance officers are generally involved in all major projects, and apply present value techniques along with other tools to determine a project's viability for the company.

Corporate finance also routinely deals with all aspects of company risk, aside from ...

Solution Summary

This solution critiques the following statement - International finance is corporate finance with the use of an exchange rate. A comprehensive discussion is provided.