International Finance: Developments, Impact on Barclays Bank, MNE's Strategy, Financial Ratios

International Finance

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
a) Developments in the international or global financial environment and its impact upon
Barclays bank.........................................................................................................................1
b) Essential elements of MNE’s international financial and risk management strategy........2
c) Evaluation of financial ratios and accounting ratios.........................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International finance mainly recognized as a nation-wide business transaction among several
nations in terms of transferring of goods and services, financial transactions, foreign exchange
transactions (Frieden, 2016). There are numerous organizations that work at international stage
or are carried out as a result of changes in the global financial system. this context covers the
effect of changes throughout the global financial climate on the company's performance. As well
as key aspects on funding and risk assessment of corporations. The report is framed to execute
the financial aspects of Barclays bank. The challenges which are faced by organisation and how
it impacted the operations of entity defined in this report. financial analysis techniques are
applied in order to measure the complex business problems in international finance. Critical
evaluating and thinking process is used to concentrate towards suggested models and sections.
PART 1
a) Developments in the international or global financial environment and its impact upon
Barclays bank
Changing in international financial derivatives: The development seems to be the
ongoing growth of both the stock market on the global financial system. The transition involves
expanded use with the market for derivative (Frisari and Stadelmann, 2015). Has also increased
the market forces of diverse derivatives. Because of these developments, new businesses on the
international market could access and minimize the risks of financial instruments. Even after
such positive signs, Throughout the second half, Barclays recorded a decline in sales of than
80%. The managing director stated banking consumers and investors had a "degree of caution,"
that kept further cash in their deposits. Corporate clients were hindering on consolidation,
mergers and share market recapitalisations from important decisions. "The confusion
organisation have about Brexit obviously has an economic impact," Staley said. Jes Staley, its
chief executive, informed of both the effects of UK economic uncertainty over the coming year.
The new announcement by Barclays outweighs the additional £ 900 m that RBS put to rest
on while competitor Lloyds could announce a £ 1.8bn provision if it reports its third-quarter
results. Staley applauded the wealth management unit's results, that in the third quarter made
especially post-tax profits of £ 882 m, up 77% during the same time in 2018. Barclays was under
strain from shareholder activist Edward Bramson to restrain his competition of retail banking,
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that critics claim has absorbed much funds when providing stockholders less return on
investment.
Enhancing the integration and globalisation in financial market: It is one of the latest
changes throughout the global financial climate dimension. As regards it shifted, industry
liberalization has also been enhanced and technological advances was improved and the
communications infrastructure has also been strengthened (Kay, 2018). New companies can
expand their activities on a global level due to this shift in the global market in very moderate
manner. However, quicker access to the foreign marketplace allows for better allocation of
capital. Additionally, enhancements are being made to strategies that can help small and new
businesses make efficient improvements. There were three major challenges stood in front of
Barclays as climate variations extenuation investment, climate change adaptation investment and
strategic diversification and revolving business models. All these three challenges were perfectly
managed and controlled with effective change management.
Barclays is the first UK financial bank to deploy a Green Home Mortgage facility to its
clients. A new retail commodity which awards consumers from retail banking to buy a power-
efficient residence. Barclays provides a lower rate (compared to both the comparable key
mortgage area) for clients purchasing a new build house classified EPC A or B. This scheme
assists the banking sector to explicitly compensate people for trying an eco-friendly home,
adding real value to their spending on electricity bills. Barclays is capable to issue a UK green
mortgage worth € 500 m for the very first time, the profits of which are utilized to fund and
remortgage such green mortgages. As resulted the price of shares of Barclays plc increased by
b) Essential elements of MNE’s international financial and risk management strategy
Source of finance: There are two type of financial requirements occurs in a business as
long term and short term. Those same reports play a significant role in meeting the financial
need. However, the origin of funding can also influence the financial results of businesses. It's
because if a business does not have enough resources to finish its operations, they won't even be
able to maintain this in a competitive market (Vaubourg, 2016). At the other hand, if companies
pay economic support for higher costs, it could also affect their future growth. Financial markets
are becoming increasingly important as just a sources of corporate financing and expenditure,
going to continue its change in previous decades back from credit markets. Throughout Europe,
bond market expansion has absorbed 90 percent of the fall throughout bank credit since after the
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