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    What additional challenges arise in international financial management? What factors cause currencies to differ in value from one another? How do currency fluctuations affect earnings of multinational corporations?

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    In international financial management, there are host of issues that do not arise in domestic financial management. The key among these issue is the effective management of exchange rate fluctuations that occur during international business transactions. Due to the significant time difference in terms of actual product/ services being rendered or products purchased and the actual receipt or payment of money, the exchange rate applicable at the time of the transaction and actual exchange of money can differ significantly. Such differences can significantly alter the amount to be received or paid in an international business transaction and ...

    Solution Summary

    This solution discusses additional challenges arise in international financial management.