Recent Developments in International Finance and their Impact on Nxt Plc

International finance course
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Discussing the two recent development in international finance environment...........................3
Analysing the elements that impacts the financial performance.................................................4
Identifying the profitability ratio of the company.......................................................................6
CONCLUSION................................................................................................................................9
References......................................................................................................................................10
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INTRODUCTION
International finance refers to international microfinance that helps in study the monetary
transactions between the two countries that focuses on building the foreign direct investment.
This helps in developing the better relationship which each other through the proper relations
with other countries (Braunstein, 2017). In this report the company that has been chosen is Nxt
plc, which is British multinational clothing, Footwear and home products retailer that has
headquarter in Enderby, England. In this report it is being discussed about the recent change in
the international financial environment has been analysed and determine the impact the near
future. Apart from it is being discussed about the financial risk that has impacted the sources of
finance and dividend policy of the organisation. It is being also identify the different ratio that
will help in analysing its efficiency and effectiveness in greater context and through it could
analyse the performance.
MAIN BODY
Discussing the two recent development in international finance environment
International finance environment are important factors that has impacted the overall
functioning of the organisation. This identify through effective analysis of the international
factors. This gives various factors that impacted the company and will affect its operational and
financial performance of the company. In the context of selected organisation that is Nxt plc,
there are two major developments or changes has come in the international environment that has
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affect a lot on the functioning of the company. Some of the following developments are as
follows that influence the effectiveness of the organisation are as follows-
 Brexit- This is biggest issue that has faced by the UK, as through this many
business has affected in larger context. As before Brexit, UK has power to
negotiate with others and that increase their benefits because of EU (Burton, Kumar
and Pandey, 2020).After this, UK has lose its negotiation power and free trade
agreements with other European countries. Because it lose the EU that exerts the
stronger bargaining power as largest economy as group. In the context of Nxt Plc,
this Brexit changes has impacts the profitability and growth in their business. Due
to losing the relationship between other countries does not get enough chances to
do free trade agreement with other nations also. Through it increases the cost of
raw material in the UK and that leads to finishes the product out. This reduces the
efficiency of the business operation and that lower down the activities of import
and export. In order to make better use the opportunity organisation has to control
their cost and expenses. In the firm, this has reduces future chances to development
as this change has affected a lot to the country and also other nation which were
having their trade relations.
 Covid-19- This is global pandemic which is facing by the whole country as this has
deeply affected the economy of entire world. This is still going on and has ruined
many small business and start-ups who were recently started their business. This
become so difficult for the countries to control the affect of this issue but they were
fail to do so. Big business has also been impacted by this change very badly and
unable to cope up with the result and will bring consequences that shows the future
uncertainties (Emmenegger and Eggenberger, 2018). Many business very huge
losses and on the other hand small business were tend to shut down during this
pandemic. This puts behind many organisation in terms of their growth. It will take
some years to many companied too get back into track again. In the context of Nxt
Plc, this change has bring negative change in the company and face big loss during
this issue as they have lost their customer at bigger level and tend to increase the
loss and become difficult to survive. Company has face loss in terms of many
factors as customer were reducing and showing less interest in purchasing and not
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